agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, that are 2 not set forth in this contract, and that no agreement, statement, or promise not contained in this contract shall be valid or binding. 20. Partial Invalidity. If any term or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions of this agreement shall remain in full force and effect and shall in no way be affected, impaired, or invalidated. 21. Government Regulation. This Agreement is subject to all applicable federal, state and municipal laws, regulations and ordinances, whether existing or enacted hereafter, including the rules and regulations of all governmental agencies or commissions having jurisdiction in matters covered by this Agreement or either of the parties hereto. This Agreement is executed in duplicate on the 5th day of December, 2007, in Fort Worth, Tarrant County, Texas, to be effective January 1, 2008. 3 R. C. BOYD ENTERPRISES, LLC By: /s/ R.C. Boyd Printed Name: R.C. Boyd Title: President CANO PETROLEUM, INC. By: /s/ Jeff Johnson Printed name: Jeff Johnson Title: CEO QuickLinks EXHIBIT 10.1