SEC Form 3

FORM 3

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person* 1346049 ONTARIO LTD (Last) (First) (Middle) 22 ST. CLAIR AVENUE 18TH FLOOR (Street) TORONTO A6 M4T 2S3 (City) (State) (Zip)	2. Date of Event Requiring Statement (Month/Day/Year) 02/26/2007	3. Issuer Name and Ticker or Trading Symbol CANO PETROLEUM, INC [ CFW ]
		4. Relationship of Reporting Person(s) to Issuer (Check all applicable) Director X 10% Owner Officer (give title below) Other (specify below)	5. If Amendment, Date of Original Filed (Month/Day/Year)
			6. Individual or Joint/Group Filing (Check Applicable Line) Form filed by One Reporting Person X Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Beneficially Owned
1. Title of Security (Instr. 4)	2. Amount of Securities Beneficially Owned (Instr. 4)	3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	4. Nature of Indirect Beneficial Ownership (Instr. 5)

Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 4)	2. Date Exercisable and Expiration Date (Month/Day/Year)		3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)		4. Conversion or Exercise Price of Derivative Security	5. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
	Date Exercisable	Expiration Date	Title	Amount or Number of Shares

1. Name and Address of Reporting Person* 1346049 ONTARIO LTD (Last) (First) (Middle) 22 ST. CLAIR AVENUE 18TH FLOOR (Street) TORONTO A6 M4T 2S3 (City) (State) (Zip)

1. Name and Address of Reporting Person* Trapeze Capital Corp. (Last) (First) (Middle) 22 ST. CLAIR AVENUE 18TH FLOOR (Street) TORONTO A6 M4T 2S3 (City) (State) (Zip)

1. Name and Address of Reporting Person* Abramson Randall Dov (Last) (First) (Middle) C/O 1346049 ONTARIO LIMITED 22 ST. CLAIR AVENUE 18TH FLOOR (Street) TORONTO A6 M4T 2S3 (City) (State) (Zip)

Explanation of Responses:

Remarks:

(1) Trapeze Capital Corp. ("TCC") provides broker-dealer services and/or advisory services to certain managed accounts (the "Accounts") of TCC and Trapeze Asset Managment Inc. ("TAMI"), an investment advisor affliated with TCC. The Accounts are the direct owners of shares of common stock, par value $0.0001 per share, of Cano Petroleum, Inc. 1346049 Ontario Limited ("Holdings") is the sole stockholder of each of TCC and TAMI. Mr Abramson is the controlling stockholder of Holdings. None of Holdings, TCC or Mr. Abramson beneficially own any such shares as the term "beneficial owner" is defined in Rule 16a-1(a)(2).

No securities are beneficially owned.

	/s/ Randall Abramson	03/14/2007
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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