Laredo Oil, Inc. filed an 8-K press release on October 27, 2026, announcing a non-binding letter of intent with an Argentine oil and gas operator to evaluate deployment of its Underground Gravity Drainage technology in a hydrocarbon exploitation concession in Santa Cruz Province, Argentina.

Key Highlights

  • Second Argentine LOI in 30 days: The company disclosed this LOI follows one announced on September 22, 2026, and applies the same commercial framework across a second operator.
  • Confidential counterparty: The operator and concession are withheld at this stage under the LOI's confidentiality provisions, according to the filing.
  • 180-day exclusivity period: Technical, legal, financial, and operational review, including front-end engineering and design (FEED), is expected within the LOI's initial 180-day exclusivity period.
  • Provincial engagement: Laredo reported it has met with the Governor of Santa Cruz and the provincial Ministry of Energy and Mining, whose approvals may be required for definitive agreements.
  • Commercial structure mirrors first LOI: Laredo acts as exclusive UGD contractor, funds UGD capital and operating expenditures, and recovers its investment from incremental production under a cost-recovery and profit-sharing framework.
  • Going-concern disclosure noted: The filing states that the company's financial statements for the fiscal year ended May 31, 2026, contain going-concern disclosure.

Laredo Oil's Santa Cruz LOI: Structure, Scope, and Path Forward

According to the filing, Laredo Oil, Inc. (OTC:LRDC), headquartered in Austin, Texas, entered into a non-binding letter of intent with an established Argentine oil and gas operator to evaluate commercial deployment of its proprietary Underground Gravity Drainage (UGD) technology. The concession is located in Santa Cruz Province, Argentina, and is held by a third-party concession holder, with the operator holding its participating and operating rights under applicable agreements. Both the counterparty identity and the specific concession are withheld pursuant to the LOI's confidentiality provisions.

The commercial structure disclosed in the filing calls for Laredo to serve as the exclusive UGD contractor, funding UGD capital and operating expenditures and recovering its investment from incremental production under a cost-recovery and profit-sharing framework to be set out in definitive agreements. The company described this arrangement as mirroring its first Argentine LOI and as the template it intends to apply across Argentine operators. Any investment remains subject to financing, approvals from the concession holder and other third parties, and execution of definitive agreements.

The filing cited publicly available Argentine government data to provide market context, noting that Argentina's crude output reached a record 887,227 barrels per day in May 2026, representing a 19% year-over-year increase according to the Ministry of Economy, and that crude became the country's largest export product in the first half of 2026 according to INDEC. The company also referenced a February 2026 U.S.-Argentina Agreement on Reciprocal Trade and Investment and stated it intends to evaluate U.S. EXIM and DFC financing tools alongside private capital. The filing cautions that third-party data on Argentina's production, exports, and trade framework has not been independently verified by the company. Forward-looking statements in the release are the company's own and subject to its cautionary language, including risks related to the non-binding nature of the LOI, limited financial resources, and the fact that UGD has not yet been deployed at commercial scale.

What Was Disclosed

Laredo Oil announced a second non-binding LOI with an Argentine operator for UGD technology evaluation in a Santa Cruz Province concession, under the same cost-recovery and profit-sharing structure as its prior LOI, with a 180-day exclusivity period for technical and engineering review.