Laredo Oil Signs First Non-Binding Letter of Intent (LOI) for Commercial Deployment of UGD in Argentina

Laredo Oil secures its first non-binding LOI that could lead to UGD-based production projects in mature Argentine oil fields.

Rhea-AI Summary

Laredo Oil (LRDC) signed a non-binding Letter of Intent with an established Argentine oil operator for potential commercial deployment of its Underground Gravity Drainage (UGD) technology in selected Argentine oil fields.

The parties will evaluate candidate areas through a structured technical, legal, financial and operational process that includes Front-End Engineering and Design. Subject to satisfactory results, financing, regulatory approvals and definitive agreements, Laredo would finance and deploy UGD facilities through a dedicated Argentine operating entity and recover funded project development expenditures from incremental oil production attributable to UGD.

The LOI runs until execution of definitive Production Sharing Agreements or an earlier mutually agreed date. Aside from certain provisions such as governing law, non-disclosure and a 180-day exclusivity period imposed on the partner, the LOI is non-binding and any binding commercial arrangement remains subject to further due diligence and customary conditions.

Positive

• First non-binding LOI for potential commercial UGD deployment in Argentina
• LOI includes 180-day exclusivity period imposed on the Argentine partner
• Framework for Laredo to finance and deploy UGD via a dedicated Argentine entity
• Investment recovery mechanism tied to incremental production attributable to UGD

Negative

• LOI is non-binding; commercial agreements remain subject to many conditions
• Project execution depends on securing financing and regulatory approvals
• Binding Production Sharing Agreement requires additional due diligence and evaluations

AI-generated analysis. How Rhea-AI works. Not financial advice.

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AUSTIN, Texas, Sept. 22, 2026 /PRNewswire/ -- Laredo Oil, Inc. (OTC: LRDC) ("Laredo" or the "Company") today announced that it has signed a non-binding Letter of Intent ("LOI") with an established Argentine oil operator for the potential commercial deployment of Laredo's proprietary Underground Gravity Drainage technology ("UGD") across selected oil fields in Argentina.

The LOI marks Laredo's first potential commercial opportunity for the deployment of UGD in Argentina.  Under its terms, the parties have agreed to evaluate selected areas through a structured technical, legal, financial, and operational process, which includes a process known as Front-End Engineering and Design.  Subject to satisfactory results, financing, regulatory approvals, and execution of definitive agreements, Laredo would finance and deploy the UGD facilities through a dedicated Argentine operating entity.

"This is a major milestone for Laredo," said Mark See, Chief Executive Officer of Laredo Oil. "Argentina has an exceptional inventory of mature conventional oil fields that are ideally suited for UGD, which is designed to recover from mature reservoirs by using gravity and high wellbore density. This LOI gives us a potential pathway toward commercial deployment and creates a foundation for future expansion across Argentina.  The LOI structure provides for Laredo to fund agreed project development expenditures and recover its investment from incremental production attributable to UGD.  The term of the LOI lasts until the signing of the definitive agreements, in the form of a Production Sharing Agreement, or such shorter period of time as mutually agreed upon between the two parties in writing."

With the exception of certain non-commercial provisions, including but not limited to governing law, non-disclosure, 180-day exclusivity period imposed on the partner, the LOI is otherwise non-binding and a binding commercial arrangement remains subject to performing additional due diligence, technical and economic evaluation, securing financing, executing definitive agreements, obtaining regulatory approvals, and other customary conditions. 

About Laredo Oil, Inc.

Laredo Oil, Inc. (OTC: LRDC) is an energy technology and development company focused on commercializing its proprietary Underground Gravity Drainage ("UGD") technology to increase oil recovery from mature and underperforming reservoirs.

Forward-Looking Statements

This press release contains forward-looking statements intended to qualify for the safe harbor created by the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally may be identified by words such as "may," "will," "expect," "anticipate," "believe," "estimate," "intend," "plan," "project," "could," "should," "would," "potential," "target," "continue," "forecast," "seek," or similar expressions, and the negatives of those words or other comparable terminology. These statements are not historical facts and are based on the Company's current expectations, estimates, assumptions, and projections.

In this press release, forward-looking statements include statements regarding the LOI and the potential commercial deployment of the Company's proprietary Underground Gravity Drainage technology in Argentina; the identification, selection, evaluation, and development of mature oil assets; the scope, timing, commencement, and anticipated results of the Front-End Engineering and Design (FEED process); the negotiation and execution of definitive agreements; financing arrangements and the Company's potential funding of project development expenditures; potential expansion of UGD deployment across Argentina; potential production, recovery, revenue, profitability, and other economic results; and the anticipated timing, scope, costs, and amount of project development expenditures.

These forward-looking statements are subject to numerous risks and uncertainties, including the non-binding nature of the LOI, other than specified provisions; the ability of the parties to negotiate and execute definitive agreements on acceptable terms or at all; the ability to secure adequate financing on acceptable terms or at all; the ability to obtain and maintain required regulatory, environmental, permitting, governmental, and other approvals in Argentina; political, economic, social, legal, regulatory, and currency risks in Argentina; operational, and execution risks; volatility in oil prices and other commodity prices; environmental, health, safety, and permitting risks; the Company's limited financial resources; risks associated with operating in foreign jurisdictions; changes in applicable laws, regulations, policies, or governmental requirements; the availability and cost of personnel, equipment, services, and materials; the Company's ability to protect and commercialize its intellectual property; potential disputes, delays, or termination involving the counterparty; the possibility that the contemplated project may not proceed, may be delayed, or may not achieve commercial production or expected economic results; and other risks and uncertainties described in the Company's filings with the U.S. Securities and Exchange Commission ("SEC").

Actual results could differ materially from those expressed or implied by these forward-looking statements as a result of these and other factors. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. Additional risk factors and uncertainties are described in the Company's filings with the SEC, and readers are urged to review those filings for a more complete discussion of risks affecting the Company and its business. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.

Investor Relations

Laredo Oil, Inc.
Nicholas Rausch
EVP, Business Development
(512) 337-1199
info@laredo-oil.com

 

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SOURCE Laredo Oil, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What activities are planned under the evaluation process in the LOI?

The parties agreed to evaluate selected areas through a structured technical, legal, financial and operational process, which includes Front-End Engineering and Design to assess the potential deployment of Underground Gravity Drainage facilities.

How is Laredo Oil expected to participate in potential UGD projects in Argentina?

Subject to satisfactory evaluation results, financing, regulatory approvals and definitive agreements, Laredo would finance and deploy UGD facilities through a dedicated Argentine operating entity and recover its agreed project development expenditures from incremental production attributable to UGD.

How long will the Letter of Intent remain in effect?

The term of the LOI lasts until the signing of definitive agreements, in the form of a Production Sharing Agreement, or for a shorter period if both parties agree to such a change in writing.

Which provisions of the LOI are binding despite its overall non-binding nature?

With the exception of commercial terms, certain provisions are binding, including but not limited to governing law, non-disclosure obligations and a 180-day exclusivity period imposed on the Argentine partner.

What conditions must be met before a binding commercial arrangement is finalized?

A binding commercial arrangement remains subject to additional due diligence, technical and economic evaluation, securing financing, executing definitive agreements, obtaining regulatory approvals and satisfying other customary conditions.

What is Laredo Oil’s Underground Gravity Drainage technology intended to do?

Laredo’s Underground Gravity Drainage technology is described by the company as being designed to increase oil recovery from mature and underperforming reservoirs by using gravity and high wellbore density.