Laredo Oil, Inc. (OTCMKTS:LRDC) Files An 8-K Entry into a Material Definitive Agreement

On June 30, 2020, Laredo Oil, Inc. (“Laredo”) entered into a Limited Liability Company Agreement (the “LLC Agreement”) of Cat Creek Holdings LLC (“Cat Creek”), a Montana limited liability company formed as a joint venture with Lipson Investments LLC (“Lipson”) and Viper Oil & Gas, LLC (“Viper”) for the purchase of certain oil and gas properties in the Cat Creek Field in Petroleum and Garfield Counties in the State of Montana (the “Cat Creek Properties”). Cat Creek entered into an Asset Purchase and Sale Agreement (the “Purchase Agreement”) with Carrell Oil Company (“Seller”) on July 1, 2020 for the purchase of the Cat Creek Properties from Seller. Upon closing under the Purchase Agreement, Seller will receive consideration of $400,000, subject to certain adjustments resulting from pre- and post-effective date revenue, expense and tax allocations. Closing under the Purchase Agreement is contingent upon Seller obtaining the requisite legal authority to sell the assets to Cat Creek.

In accordance with their ownership interests in Cat Creek, Laredo, Lipson and Viper will pay 50%, 25% and 25%, respectively, of the purchase price and the costs of the transaction. Laredo will fund its portion of the purchase price using cash on hand. Cat Creek will be managed by a Board of Directors consisting of four directors, two of which shall be designated by Laredo.

About Laredo Oil, Inc. (OTCMKTS:LRDC)

Laredo Oil, Inc. is a management services company. The Company is engaged in managing the acquisition and conventional operation of mature oil fields and the further recovery of stranded oil from those fields using enhanced oil recovery (EOR) methods. The Company focuses on EOR applications in depleted and mature oil fields. The Company’s tool is to apply its Underground Gravity Drainage (UGD) process. The Company’s UGD enables a solution, Hyper Down-Spacing, which facilitates manageable production. It is a combination of managed well spacing and gravity drainage through underground access, and uses underground machinery to drill upwards from beneath the target oil field. It also uses gravity to drain remaining mobile oil. The Company offers its services to Stranded Oil Resources Corporation (SORC), a subsidiary of Alleghany Corporation (Alleghany). The Company is engaged in testing various EOR, such as nitrogen and carbon dioxide injection.