Laredo Oil, Inc. reported that the company has signed multiple agreements with the Stranded Oil Resources Corporation to license and provide enhanced oil recovery services on selected oil properties.
Laredo Oil utilizes the Underground Gravity Drainage method to recover oil from mature fields that have difficulty producing enough hydrocarbons to be commercially viable. This method consists of tunneling below existing reservoirs and drilling upwards into these deposits.
The Stranded Oil Resources Corporation is a wholly owned subsidiary of Alleghany Corporation. The company is required under the agreement to provide capital to fund future expenses of the venture, and plans to issue 12% Cumulative Preferred Stock and common stock.
Mark See, the CEO of Laredo Oil, Inc., will become the CEO of the Stranded Oil Resources Corporation and is required to spend substantially all of his time and effort in locating, evaluating and implementing the Underground Gravity Drainage method on oil properties leased by the Stranded Oil Resources Corporation.
In exchange for these licenses and services, Laredo Oil, Inc. will receive a royalty from the Stranded Oil Resources Corporation based on the future profits earned. This royalty will range from 17.25% to 19.99%.
For more information on the company, go to http://www.laredo-oil.com/index.php