Laredo Oil, Inc. Announces Discovery of Free Oil in Connection with Agreement with Texakoma Exploration and Production

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Laredo Oil, Inc. (LRDC) announced the discovery of 'free oil' in the second well drilled by Texakoma Exploration and Production, LLC under their agreement. The open hole well logs identified an oil filled porosity zone that is laterally consistent in thickness and structurally high to the surrounding productive wells in the field. The agreement covers Texakoma's participation in the exploration and development of 7,375 net acres of mineral rights in Valley County, Montana. Texakoma has an option to drill another eight wells in the Contract Area, with an 85%/15% split between Texakoma and Lustre, respectively. Laredo Oil also retains a 100% leasehold interest in an additional 30,000 net mineral acres in northeastern Montana. Mark See, Chairman and CEO of Laredo Oil, expressed confidence in the commercial success of the wells and the viability of their mineral rights in Valley County, expecting a net positive operating cash flow position in calendar 2024.

AUSTIN, Texas, Dec. 5, 2023 /PRNewswire/ -- Laredo Oil, Inc. (OTC Pink Sheets: LRDC), an exploration and production company ("Laredo Oil") today announced the discovery of "free oil" in the second of two wells drilled by Texakoma Exploration and Production, LLC ("Texakoma") under the agreement between Lustre Oil Company, LLC (a wholly-owned subsidiary of Laredo Oil) and Texakoma. Similar to the previously disclosed first well drilled under the agreement, Texakoma ran and cemented casing in the second well, and is now preparing both wells for completion. The open hole well logs identified an oil filled porosity zone that is laterally consistent in thickness and structurally high to the surrounding productive wells in the field. The agreement with Texakoma covers Texakoma's participation in the exploration and development of 7,375 net acres of mineral rights in Valley County, Montana (the "Contract Area"). After completion of the first two wells, Texakoma has an option to drill another eight wells in the Contract Area, with an 85%/15% split between Texakoma and Lustre, respectively. Texakoma also has an option to drill additional wells within the Contract Area, with the working and net revenue interest for each such additional well being split between Texakoma and Lustre on a 50/50 basis. Laredo Oil also retains a 100% leasehold interest in, and full control of over, an additional 30,000 net mineral acres in northeastern Montana at the western edge of the Williston Basin.

According to Mark See, Chairman and CEO of Laredo Oil, "Now that both wells have been drilled, Texakoma will evaluate the wells to determine whether to execute its option to drill the additional eight wells. Based on the favorable data being recorded, I am confident that both wells will be commercially successful and will confirm the viability of our mineral rights in Valley County. We believe that the data will incentivize Texakoma to exercise its option to drill the eight additional wells. Once those wells are producing, I expect Laredo Oil will reach a net positive operating cash flow position in calendar 2024."

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.

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SOURCE Laredo Oil, Inc.

FAQ

What did Laredo Oil announce?

Laredo Oil, Inc. announced the discovery of 'free oil' in the second well drilled by Texakoma Exploration and Production, LLC under their agreement.

Where is the Contract Area for the exploration and development of mineral rights?

The Contract Area is located in Valley County, Montana.

What is the split between Texakoma and Lustre for drilling additional wells in the Contract Area?

Texakoma has an option to drill another eight wells in the Contract Area, with an 85%/15% split between Texakoma and Lustre, respectively.

What did Mark See, Chairman and CEO of Laredo Oil, express confidence in?

Mark See expressed confidence in the commercial success of the wells and the viability of their mineral rights in Valley County, expecting a net positive operating cash flow position in calendar 2024.