History
Laredo Oil moved from licensing its oil-recovery technology to Alleghany's SORC, to buying SORC back and returning to direct Montana operations, funded by small, costly raises.
2011-2019: A technology licensor
Laredo Oil began the period with about 52 million shares. In June 2011 it licensed its "Underground Gravity Drainage" enhanced-oil-recovery technology, and the services of CEO Mark See, to Stranded Oil Resources Corporation (SORC), a new vehicle backed by Alleghany. Laredo was to receive a royalty of 17.25% to 19.99% of SORC's net profits plus management fees, and Alleghany committed up to $16 million to fund SORC. The deal turned cash-strapped Laredo into a technology-licensing and management-services business rather than a direct oil operator. The beats record nothing else of note for these years, so the record is quiet.
2020-2022: Back to operating
In July 2020 Laredo formed Cat Creek Holdings, a joint venture with Lipson Investments and Viper Oil & Gas, to buy Montana oil and gas properties in the Cat Creek Field from Carrell Oil Company for $400,000. Laredo held 50%, and it was its first direct operating stake since 2011. In January 2021 it bought SORC back from Alleghany for $55,000 plus a 5% royalty on its future oil and gas revenue for seven years. That regained exclusive worldwide rights to its technology, plus SORC's oilfield equipment. The two old Alleghany loans were rolled into one $631,434 note secured by that equipment, and Alleghany agreed to pay about $1.245 million in 2021 for consulting from Mark See and General Counsel Chris Lindsey.
2022-2024: Montana funding and an auditor shock
In September 2022 Laredo set up a note-purchase facility of up to $7.5 million, secured by its subsidiary Hell Creek Crude, and drew an initial $50,000. In January 2024 Hell Creek Crude raised $2.034 million from accredited investors to drill a development well and buy leases in Montana's Midfork Field. Some investors rolled $575,000 of existing convertible debt into the new money rather than paying cash. In May 2024 its auditor, BF Borgers, was suspended from practicing before the SEC after being charged with massive audit fraud, and Laredo had to find a new auditor. At that date it was funding its Montana work through small raises and subsidiary-level financing.
Written from the 6 story beats below (2011 to 9 May 2024), which come from the company's own announcements and filings.