- Laredo received a reserve report valuing a small portion of its subsidiary’s Western Williston Basin properties interests at $41 million of cumulative cash flow (discounted at 10%)
- CEO Mark See highlighted the report as confirmation of potential for the first 10 well package at the property in northeast Montana
- Oil price forecasts have risen sharply early in 2022 with growing geopolitical tension, declining global production and rebounding demand
Laredo Oil (OTC: LRDC), an oil and gas exploration and production (E&P) company, is focused on acquiring, developing and operating conventional oil and gas properties. During a recent down cycle, the company leased 23,739 mineral acres in the Western Williston Basin of Montana at favorable prices, and it continues to make progress toward developing this asset.
In November, Laredo announced receiving a reserve report from an independent petroleum engineering firm estimating that interests attributable to certain properties in the Western Williston Basin of Montana acquired by Laredo subsidiary Lustre Oil Company LLC have a present total worth of “$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 23,739 acres where Lustre has acquired mineral rights in northeast Montana,” Mark See, Chairman and CEO of Laredo, said in the news release. “Based on this reserve report, I feel the field has much more potential for expansion.”
Montana’s Western Williston Basin has an extensive production history dating back to the 1950s. Notably, the area features shallow well depths ranging from 4,000 to 7,000 feet, enabling the use of conventional vertical well applications that offer less inherent risk and costs than areas requiring unconventional recovery techniques and horizontal wells.
The outlook for oil prices has soared early in 2022, as geopolitical tension continues to increase, and global demand recovers as fears surrounding the omicron coronavirus variant dissipate (https://nnw.fm/IM8W1). A Monday report from Reuters pegged Brent crude forecasts at $79.16 per barrel this year, up from an estimate of $73.57 in December. Meanwhile, demand is seen growing by “3-5 million barrels per day in 2022, with analysts seeing a muted impact from the current COVID-19 surge.”
For Laredo, these market projections are promising. The company remains committed to value, growth upside and free cash flow, and its management team has noted an interest in aggressively pursuing the acquisition of quality assets that major, mid-major and large independent oil and gas companies continue to divest themselves of.
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://nnw.fm/LRDC
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