Under the agreement, the two firms will initiate a rigorous technical and financial evaluation process, including Front-End Engineering and Design. If the project proves viable, Laredo intends to fund the infrastructure through a dedicated local operating entity. CEO Mark See described the deal as a major milestone, noting that Argentina’s mature reservoirs offer the ideal high-density wellbore environment required for the UGD process to succeed.
Laredo Oil Targets Argentine Market With Gravity Drainage Technology
Laredo Oil has signed a non-binding Letter of Intent with an established Argentine operator to deploy its proprietary Underground Gravity Drainage technology. This marks the Austin-based company’s first potential commercial entry into South America, aiming to boost production from the nation’s aging conventional oil fields through specialized reservoir recovery techniques.
The arrangement hinges on a performance-based model where Laredo covers development costs and recoups its investment directly from the incremental oil production generated by the technology. While the letter establishes a 180-day exclusivity period for the partner, the deal remains subject to final regulatory approvals, securing necessary financing, and the successful execution of a definitive Production Sharing Agreement.
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