Laredo Oil, Inc. announced the discovery of "free oil" in the second of two wells drilled by Texakoma Exploration and Production, LLC under the agreement between Lustre Oil Company, LLC (a wholly-owned subsidiary of Laredo Oil) and Texakoma. Similar to the previously disclosed first well drilled under the agreement, Texakoma ran and cemented casing in the second well, and is now preparing both wells for completion. The open hole well logs identified an oil filled porosity zone that is laterally consistent in thickness and structurally high to the surrounding productive wells in the field.

The agreement with Texakoma covers Texakoma's participation in the exploration and development of 7,375 net acres of mineral rights in Valley County, Montana (the "Contract Area"). After completion of the first two wells, Texakoma has an option to drill another eight wells in the Contract Area, with an 85%/15% split between Texakoma and Lustre, respectively. Texakoma also has an option to drill additional wells within the Contract Area, with the working and net revenue interest for each such additional well being split between Texakoma and Lustre on a 50/50 basis.

Laredo Oil also retains a 100% leasehold interest in, and full control of over, an additional 30,000 net mineral acres in northeastern Montana at the western edge of the Williston Basin.