Laredo Oil Advances Operations with Second Letter of Intent for UGD in Argentina

Laredo Oil's Strategic Expansion in Argentina

Laredo Oil, Inc., a notable player in the energy sector, has recently signed its second Letter of Intent (LOI) with an established Argentine firm to implement its proprietary Underground Gravity Drainage (UGD) technology. This latest agreement aims to assess the deployment of UGD within a hydrocarbon exploitation concession located in Santa Cruz Province, Argentina.

Second LOI Significance

The signing of this non-binding LOI marks a significant step for Laredo as it follows closely behind another LOI signed just 30 days prior, emphasizing the company's commitment to expanding its footprint in Argentina. The current agreement pertains to a concession operated by a third-party holder whose identity remains confidential due to the stipulations of the LOI. Laredo's strategy involves establishing its role as the exclusive UGD contractor, which entails funding capital and operating expenditures required for the deployment of this innovative technology.

Advantages of UGD Technology

UGD technology has proven effective for increasing oil recovery rates from mature conventional reservoirs. By leveraging this advanced technique, Laredo aims to enhance production from areas where conventional extraction methods are gradually declining. The structure of the agreements established in the first LOI will be mirrored in this new engagement, allowing Laredo to maximize its investment recovery through a cost-recovery and profit-sharing framework that will be defined in future definitive agreements.

A Promising Future Ahead

The initial phase within the LOI allows for a comprehensive review that includes technical, legal, and operational assessments, which are expected to transpire during the initial 180-day exclusivity period. The completion of front-end engineering and design (FEED) work will determine the subsequent steps for UGD deployment. Investment decisions will hinge on securing financing, obtaining necessary approvals from the concession holder, and reaching definitive agreements.

Additionally, Laredo has proactively engaged with local authorities, meeting with the Governor of Santa Cruz and the provincial Ministry of Energy and Mining. Their support will be essential for moving forward with definitive agreements, reinforcing Laredo’s commitment to collaborating with local governance to facilitate the project’s advancement.

Market Conditions Favoring Expansion

Currently, Argentina's crude oil output has reached unprecedented levels, reaching 887,227 barrels of oil per day as of May 2026, marking a 19% year-on-year increase. The country's booming energy sector, particularly in crude exports, creates a ripe environment for Laredo's operations. Approximately 30% of Argentina's oil production still stems from conventional bases subject to natural decline, exactly where the UGD method shines. This strategic timing coincides with a broader movement in Argentina's energy landscape, bolstered by the February 2026 U.S.-Argentina Agreement on Reciprocal Trade and Investment which supports U.S. investments in key areas like oil and gas.

Mark See, Laredo's Chief Executive Officer, expressed enthusiasm for the company's future: "Two LOIs on a similar framework, a province working to recover its conventional production and a country whose energy sector is growing at record pace that is the shape of our Argentina program," he stated. The company is now focused on engineering solutions that align with these objectives and the expectations of its partners and shareholders.

About Laredo Oil, Inc.

Laredo Oil, Inc. is a U.S.-based energy technology company based in Austin, Texas. It specializes in commercializing its underground gravity drainage technology, designed to enhance oil recovery from mature conventional reservoirs. With a decade-long development history, Laredo holds exclusive rights to all related intellectual property, positioning itself at the forefront of energy technology innovation.

For more information on Laredo Oil and its innovative solutions, browse their official website and SEC filings.

Conclusion

Laredo Oil's continued engagement in Argentina underlines its strategic approach to expanding its operations and leveraging cutting-edge technology to enhance oil recovery in challenging environments. As UGD technology takes center stage, Laredo is poised to contribute significantly to the revitalization of Argentina’s energy sector while reinforcing its own growth trajectory.