CFW Cano Petroleum Common Stock

SEC File Number  001-32496

CUSIP Number  137801106

If the notification relates to a portion of the filing checked above, identify the Item(s) to which the notification relates:

PART I — REGISTRANT INFORMATION

PART II — RULES 12b-25(b) AND (c)

If the subject report could not be filed without unreasonable effort or expense and the registrant seeks relief pursuant to Rule 12b-25(b), the following should be completed. (Check box if appropriate)

PART III — NARRATIVE

State below in reasonable detail why Forms 10 - K, 20 - F, 11 - K, 10 - Q, 10 - D, N - SAR, N - CSR, or the transition report or portion thereof, could not be filed within the prescribed time period.

Cano Petroleum, Inc. (the “Company”) could not file its annual report on Form 10-K within the prescribed time period, because the Company requires additional time to prepare and review it.  The delay could not be eliminated without unreasonable effort or expense.  In accordance with Rule 12b-25 under the Securities Exchange Act of 1934, the Company anticipates filing its annual report on Form 10-K no later than fifteen calendar days following the prescribed due date.

PART IV — OTHER INFORMATION

Please see Attachment A.

ATTACHMENT A

Cano Petroleum, Inc. (“Cano”) anticipates, on an unaudited basis, to incur a loss from continuing operations before income taxes of approximately $204.4 million for the year ended June 30, 2011 compared to a loss from continuing operations before income taxes of $20.1 million for the year ended June 30, 2010.  The significant change results primarily from an impairment of estimated proved reserves of approximately $172.4 million, which the Company anticipates recording upon the completion of its review of the financial statements.

Proved Undeveloped Reserves and Proved Developed Non-Producing Reserves

The Company anticipates reporting that as of June 30, 2011, it does not have reportable estimated proved undeveloped reserves or estimated proved developed non-producing reserves.  This is a decrease of approximately 34.2 million barrels of oil equivalent from the estimated proved undeveloped reserves and a decrease of approximately 2.2 million barrels of oil equivalent from estimated proved developed non-producing reserves reported by the Company as of June 30, 2010.

These decreases primarily are the result of the application of the requirements of the SEC’s amended Rule 4-10 of Regulation S-X.   Among other things, guidance for Rule 4-10 of Regulation S-X for the reporting of estimated proved undeveloped reserves requires that a company must have adopted a development plan and have made a final investment decision for the development of such reserves.  The mere intent to develop is not sufficient for reporting estimated proved undeveloped reserves.  For all reserves, Rule 4-10 of Regulation S-X requires that there must exist, or there must be a reasonable expectation that there will exist, the financing required to implement the development projects.  Due to the Company’s current financial constraints, including continued losses, defaults under its loan agreements, no available borrowing capacity, constrained cash flow, negative working capital, and limited to no other capital availability, the Company does not have a reasonable expectation that it can obtain the financing required to implement these projects within a reasonable time, even though the Company believes these projects, in and of themselves, remain technically feasible and economically attractive.  Therefore, the Company anticipates recording the aforementioned impairment to its reserves.

Proved Developed Producing Reserves

The Company expects to report estimated proved developed producing reserves as of June 30, 2011 of approximately 4.2 million barrels of oil equivalent, a decrease of approximately 1.8 million barrels of oil equivalent from the 6.0 million barrels of oil equivalent reported by the Company as of June 30, 2010.  This anticipated reduction primarily results from production of approximately 0.4 million barrels of oil equivalent for the year ended June 30, 2011 and an estimated reserve reduction of approximately 1.4 million barrels of oil equivalent due to reserve revisions that the Company believes will be principally the result of lower rates of production performance than previously forecast in the Company’s reserve report dated June 30, 2010.

Summary Results of Operations

The following table summarizes the Company’s current estimates of key items of comparison and their related increase (decrease) for the fiscal years ended June 30, 2011 and 2010.

Cano Petroleum, Inc.

(Name of Registrant as Specified in Charter)

has caused this notification to be signed on its behalf by the undersigned hereunto duly authorized.

INSTRUCTION: The form may be signed by an executive officer of the registrant or by any other duly authorized representative. The name and title of the person signing the form shall be typed or printed beneath the signature. If the statement is signed on behalf of the registrant by an authorized representative (other than an executive officer), evidence of the representative’s authority to sign on behalf of the registrant shall be filed with the form.