Laredo Oil, Inc. reported a net loss of $7,049,571 for the fiscal year ending May 31, 2026, a significant increase from the previous year's loss of $2,596,797. The company generated revenues of $3,141 from oil and gas sales, a decrease from $9,423 in the prior year. The increase in losses is attributed to rising operational costs, including a $2.1 million increase in stock-based compensation and substantial legal and public relations expenses related to pursuing international Underground Gravity Drainage (UGD) opportunities. The company's total debt as of May 31, 2026, stood at $3,573,056, a decrease from $3,966,351 the previous year.
In May 2023, Laredo Oil's board approved an increase in authorized shares of common stock from 90 million to 120 million, reflecting a strategic move to enhance capital-raising capabilities. The company has focused on its UGD method, which aims to recover stranded oil reserves from mature fields. Laredo has identified potential UGD projects in various international markets, including Argentina, Mexico, and the Middle East, and is actively engaging with government officials and industry participants in these regions. However, no agreements have been finalized as of the filing date.
Operationally, Laredo has faced challenges in its conventional drilling efforts in Montana, with five wells drilled in the Lustre and Midfork fields yielding limited success due to high water levels. The company has since shifted its focus back to UGD projects, abandoning most of its leased mineral property interests in Montana. As of May 31, 2026, Laredo had 2,945 net acres of mineral property interests remaining in the state. The company has also entered into various agreements with partners, including Erehwon Oil & Gas, to explore and develop oil and gas interests in Montana.
Laredo's employee count remains low, with only seven full-time employees as of May 31, 2026. The company has indicated that it is actively seeking additional funding to support its UGD initiatives and maintain operations. Despite the challenges, Laredo's management believes that the current climate for U.S.-based energy projects is improving, which may facilitate future fundraising efforts. However, the company has expressed uncertainty regarding its ability to continue as a going concern, emphasizing the need for ongoing financial support to sustain operations in the coming year.
About Laredo Oil, Inc.
Laredo Oil, Inc. is an oil exploration and production company focused on acquiring and developing mature oil fields. It utilizes proprietary underground gravity drainage (UGD) enhanced recovery methods to recover stranded oil efficiently and cost-effectively. The company operates in the U.S. and globally, managing mineral rights, conventional wells, and strategic partnerships to optimize oil recovery and field development.
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