Laredo Oil, Inc. ("Laredo Oil") (LRDC), announced that drilling has encountered free oil and drill cutting oil shows from the main target zone in the first of two exploratory wells under the agreement between Lustre Oil Company, LLC (a wholly-owned subsidiary of Laredo Oil) and Texakoma Exploration and Production, LLC ("Texakoma"). Texakoma has run and cemented casing in the first well and is moving the drilling rig to the second well location. The agreement covers participation in the exploration and development of 7,375 net acres of mineral rights in Valley County, Montana ("Contract Area"). After completion of the first two wells, Texakoma has an option to drill another 8 wells on an 85%/15% Texakoma/Lustre basis and thereafter, has an option to drill additional wells within the Contract Area with the working and net revenue interest for each well split on a 50/50 basis. Laredo retains a 100% leasehold interest 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, "Execution of our agreement with Texakoma is progressing as planned. We have received the first two payments and drilling is progressing on schedule. As expected for the first well, promising oil shows have been encountered at total depth and the well has been cased and cemented. Completions operations are expected to commence shortly as the well is prepared for production. I believe that the two wells will be commercial, will confirm the viability of our mineral rights in Valley County and incent Texakoma to exercise its option to drill the additional eight wells bringing Laredo to an expected net positive operating cash flow position in calendar 2024."
