Laredo Oil, Inc.
Laredo Oil, Inc. is a Delaware-based oil and gas exploration and production company focused on acquiring and developing mature oil fields and mineral acreage in Montana. The company’s core concept is to recover stranded oil using its proprietary underground gravity drainage (UGD) approach, while also pursuing conventional drilling on selected properties.
Fiscal year 2026 · change from previous year
Development 2021–2026
Business
Share of revenueAcquires and develops mineral rights and oil fields for future production.
Drills and completes wells on acquired acreage, mainly in Montana.
Uses underground gravity drainage concepts to recover stranded oil from mature fields.
Partners with third parties to fund and develop specific wells and acreage.
Customers
Laredo Oil does not sell to a broad consumer base; its economic counterparties are mainly joint venture partners, working-interest participants, and investors who fund drilling and acreage development. Any future revenue will come from oil and gas production from its owned or partnered properties, so the company’s “customers” are effectively the market for its produced hydrocarbons and the capital providers that enable development.
Partners such as Texakoma and Erehwon that co-fund and help execute drilling and acreage development.
Provide debt, bridge financing, and participation capital to fund exploration and operations.
Future purchasers of produced crude oil and gas from wells if commercial production is achieved.
Sellers and assignors of mineral acreage, leases, and working interests in Montana fields.
Strategy
Laredo Oil’s strategy is to prove up and monetize its Montana acreage through a mix of conventional drilling and its UGD enhanced-recovery concept. Near term, the company is focused on raising capital, drilling exploratory wells, and improving geological understanding so it can reduce dry-hole risk and move toward commercial production.
The company needs successful wells to validate reserves and create future production.
Development is capital intensive and the company has limited liquidity.
Better seismic and field data should reduce water-related drilling failures and improve economics.
UGD is intended to lower recovery costs and unlock stranded oil in mature fields.
Geography
The company’s operating footprint is concentrated in the United States, especially Montana, where it holds mineral rights in the Lustre, Midfork, West Fork, and Cat Creek areas. Its business is highly location-specific because drilling success depends on local geology, seismic data, permitting, weather, and access to infrastructure.
Risks
The company faces substantial execution and financing risk because its projects are early-stage, capital intensive, and dependent on successful drilling results. Commodity price volatility, reservoir uncertainty, and limited liquidity can quickly impair project economics and threaten the company’s going-concern status.
The company has recurring losses, limited cash, and depends on new capital to continue operations.
Exposure: Corporate liquidity and project funding
Wells may not be commercially successful, as seen in the Lustre and Midfork drilling results.
Exposure: Reserve validation and future production
Oil and gas prices directly affect project returns, funding appetite, and operating cash flow.
Exposure: Revenue and development economics
Lack of complete seismic data and complex reservoir conditions can lead to excess water and poor well performance.
Exposure: Well productivity
Larger operators can outspend Laredo on acreage, drilling, and technical work.
Exposure: Acreage acquisition and project execution
Accounting
Judgemental itemsShut-in or nonproductive wells may need write-downs when recoverability is doubtful.
Impact: Can materially reduce earnings and asset values
Persistent losses and limited cash require disclosure and affect asset/liability recoverability assumptions.
Impact: Signals elevated financial distress risk
Acquired acreage and working interests must be assigned values that depend on geological assumptions.
Impact: Affects balance sheet carrying values and future impairment risk
Multiple notes, bridge loans, and PPP-related obligations affect liquidity presentation.
Impact: Changes working capital and near-term solvency metrics
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Last updated: 28/04/2026