Laredo Oil, Inc. Announces Agreement to Drill Up to Three Wells in Montana

Rhea-AI Summary

Laredo Oil, Inc. (LRDC) announced that its subsidiary, Hell Creek Crude, LLC, has entered into a Participation Agreement with Erehwon Oil & Gas, LLC and accredited investors, providing $2,034,000 for drilling a development well and acquiring leases in Montana. The investors also hold $575,000 in convertible debt. The net working interest payments will be split on a 90%/10% basis until the total investment is repaid, then on a 50%/50% basis. After drilling, investors have the option to invest in two additional wells. The Chairman and CEO expects the well to improve cash flow, access additional capital, and increase enterprise value.

Positive

• The Participation Agreement provides $2,034,000 for drilling and lease acquisition
• Investors also hold $575,000 in convertible debt
• Net working interest payments will be split on a 90%/10% basis until the total investment is repaid, then on a 50%/50% basis
• Investors have the option to invest in two additional wells after drilling

Negative

• None.

AUSTIN, Texas, Jan. 22, 2024 /PRNewswire/ -- Laredo Oil, Inc. (OTC Pink Sheets: LRDC), an exploration and production company (the "Company"), today announced that Hell Creek Crude, LLC ("HCC"), a wholly owned subsidiary of the Company, has entered into a Participation Agreement between HCC, Erehwon Oil & Gas, LLC ("Erehwon"), and various accredited investors (the "Participation Agreement"). The Participation Agreement will initially provide $2,034,000 million in cash to fund the drilling of a development well and the acquisition of certain leases currently held by Lustre Oil Company, LLC, a wholly owned subsidiary of the Company, in the Midfork Field in Montana. Several of the participating investors also hold $575,000 in the Company's convertible debt, plus accrued interest, which investments are included as investments under the Participation Agreement.

Until the total of the $2,609,000 in cash and notes is repaid to the various investors, the net working interest payments from the Participation Agreement will be split between the various investors and HCC and Erehwon, collectively on a 90%/10% basis. After the repayment to the investors, the split between the investors and HCC and Erehwon will be on a 50%/50% basis. After the development well is drilled, the investors have the option to invest in up to two additional wells in the field.

According to Mark See, Chairman and CEO of the Company, "This agreement enables us to develop another well in a proven and developed oil field on our mineral leases outside the area of mutual interest under our agreement with Texakoma. I expect that this will be another successful well, improving our ability to increase cash flow, access additional capital to develop our leases and increase our enterprise value by adding additional proven developed and proven undeveloped reserves."

About Laredo Oil Inc.
Laredo Oil, Inc. (www.laredo-oil.com) is an oil exploration and production company primarily engaged in acquisition and exploration efforts for mineral properties. In addition to pursuing conventional oil recovery methods in selected oil fields, Laredo Oil plans to locate and acquire mature oil fields, with the intention of recovering "stranded" oil using enhanced recovery methods. Laredo Oil's common stock is listed on the Pink Sheets under the symbol, "LRDC."

Forward-Looking Statements

This press release and the statements made by Laredo Oil in this press release may be forward-looking in nature and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements describe Laredo Oil's future plans, projections, strategies and expectations, and may be identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" or words of similar meaning.  These forward-looking statements are based on assumptions and involve a number of risks, uncertainties, situations and other factors that may cause our or our industry's actual results, level of activity, performance or achievements to be materially different from any future results, level of activity, performance or achievements expressed or implied by these statements. These factors include changes in interest rates, market competition, changes in the local and national economies, and various other factors detailed from time to time in Laredo Oil's SEC reports and filings, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Laredo Oil undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date hereof to reflect the occurrence of unanticipated events.

View original content:https://www.prnewswire.com/news-releases/laredo-oil-inc-announces-agreement-to-drill-up-to-three-wells-in-montana-302040132.html

SOURCE Laredo Oil, Inc.

FAQ

What is the name of the company mentioned in the press release?

The company mentioned is Laredo Oil, Inc. with the ticker symbol LRDC.

What is the purpose of the Participation Agreement?

The Participation Agreement is to fund the drilling of a development well and the acquisition of certain leases in Montana.

What is the initial cash amount provided by the Participation Agreement?

The initial cash amount provided is $2,034,000.

What is the split basis for net working interest payments under the Participation Agreement?

The net working interest payments will be split between investors and HCC and Erehwon on a 90%/10% basis until the total investment is repaid, then on a 50%/50% basis.

What is the option for investors after the development well is drilled?

Investors have the option to invest in up to two additional wells in the field.

Who is the Chairman and CEO mentioned in the press release?

The Chairman and CEO mentioned is Mark See.