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.

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— Laredo Oil, Inc.
%
Oil and gas exploration and development60% Acquires and develops mineral rights and oil fields for future production.
Conventional drilling operations25% Drills and completes wells on acquired acreage, mainly in Montana.
Enhanced oil recovery / UGD10% Uses underground gravity drainage concepts to recover stranded oil from mature fields.
Working interest and participation arrangements5% Partners with third parties to fund and develop specific wells and acreage.

Laredo Oil does not sell to a broad consumer base; its economic counterparties are mainly joint venture partners,...

  • Joint venture and development partnersprimary

    Partners such as Texakoma and Erehwon that co-fund and help execute drilling and acreage development.

  • Accredited investors and lendersprimary

    Provide debt, bridge financing, and participation capital to fund exploration and operations.

  • Oil and gas buyerssecondary

    Future purchasers of produced crude oil and gas from wells if commercial production is achieved.

  • Lease and mineral rights counterpartiessecondary

    Sellers and assignors of mineral acreage, leases, and working interests in Montana fields.

The company’s operating footprint is concentrated in the United States, especially Montana, where it holds mineral...

  • •Operations are concentrated in Montana oil and gas acreage
  • •Lustre, Midfork, West Fork, and Cat Creek are key project areas
  • •North of the Fort Peck Reservation is a current drilling focus
  • •US-only footprint increases exposure to local geology and permitting
  • •Field development pace depends on weather and access to capital

Laredo Oil’s strategy is to prove up and monetize its Montana acreage through a mix of conventional drilling and its...

01
Complete exploratory drilling on Montana acreageshort-term

The company needs successful wells to validate reserves and create future production.

02
Raise external fundingshort-term

Development is capital intensive and the company has limited liquidity.

03
Improve geological and operational executionmedium-term

Better seismic and field data should reduce water-related drilling failures and improve economics.

04
Develop UGD as a differentiated recovery methodlong-term

UGD is intended to lower recovery costs and unlock stranded oil in mature fields.

The company faces substantial execution and financing risk because its projects are early-stage, capital intensive, and...

critical

Going concern and financing risk

The company has recurring losses, limited cash, and depends on new capital to continue operations.

Scope
Corporate liquidity and project funding
Materiality
high
high

Exploration and drilling failure

Wells may not be commercially successful, as seen in the Lustre and Midfork drilling results.

Scope
Reserve validation and future production
Materiality
high
high

Commodity price volatility

Oil and gas prices directly affect project returns, funding appetite, and operating cash flow.

Scope
Revenue and development economics
Materiality
high
high

Reservoir and geological uncertainty

Lack of complete seismic data and complex reservoir conditions can lead to excess water and poor well performance.

Scope
Well productivity
Materiality
high
medium

Competition from better-capitalized E&P companies

Larger operators can outspend Laredo on acreage, drilling, and technical work.

Scope
Acreage acquisition and project execution
Materiality
medium
Long-lived asset impairment
Can materially reduce earnings and asset values
Going-concern assessment
Signals elevated financial distress risk
Purchase price allocation and mineral rights valuation
Affects balance sheet carrying values and future impairment risk
Debt and current portion classification
Changes working capital and near-term solvency metrics

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: 28/04/2026