Laredo Oil Acquires Stranded Oil Resources from Alleghany Corp.
Colorado-based Laredo Oil Inc. has entered into an agreement with NYSE-listed investment holding company Alleghany Corp. to acquire its wholly-owned subsidiary, Stranded Oil Resources Corp. (SORC). The financial terms of the transaction have not been disclosed.
SORC is engaged in the acquisition, exploration and production of mature oil fields in the United States, and currently holds interest in ~10,141 net acres in Wyoming. The company is also focused on the recovery of stranded oil using Enhanced Oil Recovery (EOR) methods, and owns the enhancements to Underground Gravity Drainage (UGD) 3.0, an improved version of EOR technique utilized to produce oil from horizontally developed or mature pressure-depleted oil fields.
“SORC has invested more than $100 million in R&D and field development and owns the enhancements to UGD 3.0, an improved version of our enhanced oil recovery technique utilized to produce oil from horizontally developed or mature pressure-depleted oil fields,” stated Mark See, Chairman & CEO of Laredo Oil.
“With this acquisition of SORC, Laredo now has exclusive rights to utilize that technology on its own assets and those of operators worldwide,” he added.
In July 2020, SORC had retained PetroDivest Advisors to market for sale its oil and gas properties, leasehold and related assets in Wyoming. The assets are located in Natrona County and include the former National Petroleum Reserve 3 (NPR3) acreage and the Teapot Dome Oil field. They include mineral rights, with 9,481 acres of surface rights available separately. The company reported Proved Developed Producing (PDP) reserves (as of January 8th, 2020) of 620 thousand barrels of oil equivalent (Mboe), with production averaging 340 barrels of oil equivalent per day (boe/d) during July 2020.
Laredo Oil is engaged in managing the acquisition and conventional operation of mature oil fields and the recovery of stranded oil from those fields using EOR methods for SORC.
New York City-based Alleghany, through its operating subsidiaries and investments, is engaged in providing a range of business services including underwriting services, manufacturing of machine tools and consumable tooling systems, technical engineering-focused services, among others, to clients in the United States.