Laredo Oil secures access to salt-water disposal wells in Texas

On September 16, 2024, Laredo Oil, Inc. announced that its subsidiary, Lustre Oil Company, has successfully acquired the Cranston salt-water disposal (SWD) well along with two additional shut-in wells in Valley County, Montana. This acquisition is significant as it enables Lustre and its partner, Texakoma Exploration & Production Company, to manage the disposal of salt-water from recently drilled wells more efficiently. The access to the Cranston SWD well is expected to facilitate the production of the Reddig 11-21 well in the Midfork field and provide necessary SWD access for three wells in the Lustre field operated by Texakoma. The acquisition of the Cranston SWD well is a critical step for Laredo Oil, as it removes a major obstacle that had been hindering production ramp-up in the short term. Additionally, the conversion of the two shut-in wells into SWD wells will enhance water disposal capacity, which is essential for ongoing drilling programs. This strategic move is aimed at optimizing operations and increasing production efficiency in the region. Mark See, Chairman and CEO of Laredo Oil, emphasized the importance of this development, stating that it allows for the dewatering and production of the Olfert 11-4 well, which had been inactive due to the lack of SWD access. The company’s focus on acquiring and enhancing mature oil fields aligns with its broader strategy of recovering stranded oil through advanced recovery methods. Overall, this acquisition positions Laredo Oil to improve its operational capabilities and support its growth objectives in the competitive oil exploration and production sector.