- Plans moving forward to begin drilling this month
- Depending on drill production, drilling of next 10 wells will follow
- Reserve report estimates value of production to be $41 million
Laredo Oil (OTC: LRDC) an exploration and production company specializing in conventional and enhanced oil recovery techniques targeting mature and declining oil fields, is one step closer to drilling its first well — the Olfert 11-4 — in the Lustre Oil Field. The company has been granted a drilling permit for the planned drilling to take place in the Western Williston Basin of Montana (https://ibn.fm/xrwS0) and plans are moving forward to begin drilling soon.
“The Olfert 11-4 well is the first of 11 wells we have identified for completion in 2022,” said Laredo Oil chair and CEO Mark See. “Drilling there will commence as soon as possible; the drill rig is under contract and, depending on rig availability and weather, is scheduled for early May.”
According to See, Laredo anticipates seeing initial production from this well as early as three weeks after spudding. Based on those production results, Laredo Oil will assess the viability of the program, which was outlined in the reserve report from Nov. 1, 2021 released by an independent petroleum engineering firm.
“Assuming successful economic results from the completion of this first well, we intend to proceed to drill the next 10 wells, contingent upon successful completion of the fundraising efforts currently underway,” stated See. “And we are continuing to expand our mineral rights acreage portfolio in Montana to more fully realize on the opportunity that we believe exists there.”
Laredo’s belief in the potential of the property is rooted in more than 35 years of offsetting production and the associated technical data in the field in addition to the reserve report it received last year (https://ibn.fm/Woo0o). The report estimated that interests of proved undeveloped, probable undeveloped and contingent reserves, along with forecasts of economics attributable to certain properties in the Western Williston Basin of Montana for oil interests acquired by Lustre Oil Company LLC, a wholly owned subsidiary of Laredo Oil, total $41 million of cumulative cash flow discounted at 10%.
“This reserve report confirms the potential of the first 10 wells we have identified for completion in a small portion of the 28,496 acres where Lustre has acquired mineral rights in northeast Montana,” said See. “Based on this reserve report, I feel the field has much more potential for expansion.”
The company’s focus in Montana aligns with its strategy, which is to aggressively pursue conventional oil development opportunities and acquire select mature oil fields where management believes that the company can profitably use its proprietary Underground Gravity Drainage(TM) method to recover stranded oil reserves. Laredo believes that these fields are undervalued and have the potential to be extremely productive.
For more information, visit the company’s website at www.Laredo-Oil.com.
NOTE TO INVESTORS: The latest news and updates relating to LRDC are available in the company’s newsroom at https://ibn.fm/LRDC
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