By OGJ editors
HOUSTON, Mar. 14 -- Cano Petroleum Inc. has shut in production of 800 b/d of oil equivalent from Panhandle oil field in the North Texas counties of Hutchinson, Gray, and Carson due to grass fires in the area.
The fires cover more than 1,000 sq miles of prairie and are causing power outages.
"At this time we have no basis to believe that any producing reservoir has been damaged or compromised by the fires," said Jeff Johnson, Cano's chairman and chief executive. The company is evaluating costs and the timing of bringing the production back on line.
Cano acquired leases covering 27,000 acres in the field last November and is working over wells and beginning a waterflood.
On Mar. 14 the company updated its report saying that production of 150 b/d of oil equivalent was unaffected by the fires.
Current projections show that all production from the field will be restored to prefire levels within 30 days at an estimated out-of-pocket cost of $250,000, Cano said.