Laredo Oil, Inc. (OTCBB: LRDC) closed the last session at $0.2300 after recording a rise of 116.18%, increasing its market capitalization to $12.54M. More than 23.13 million shares of the LRDC stock were traded recently, exceeding its average daily trading volume of 1.28 million. Additionally, the LRDCshares are currently trading between $0.1010 and $0.5890.
Why the rise?
The primary objective of Laredo Oil, being an exploration and production (E&P) company is to increase recovery of oil by using its proprietary enhanced oil recovery method through leasing, development, and operations of oil fields.LRDC is the symbol for Laredo Oil common stock trading on the OTC Bulletin Board.
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There has been no news directly linked to the LRDCstock that could explain Laredo Oilstock’s rise in the past few days, but the rise could be attributed to the overall industry’s positive trend. A recent acquisition of Laredo Oil might also explain the uptick.
Earlier this year, Laredo Oil completed a transaction to acquired 100% Stocks of Stranded Oil Resources Corporation. The transaction was closed on December 31, 2020, with Alleghany Corporation directly owned SORC as its wholly-owned subsidiaries.
In addition to its $100 million investment in R&D and development, SORC also owns the technologies that made it possible to improve UGD 3.0. This enhanced oil recovery technology utilizes the underground gravity drainage (UGD) to recover oil from existing wells or oil fields when they’re developed horizontally or are pressure-depleted.
UDG is a form of exploration that involves and begins with gaining access to underground locations.In the following steps, the process uses old, established underground mining equipment to drill up the target oil field from under the surface. Gravity is then used to drain the targeted reservoir through the wellbore by drilling widely-spaced wellbores up into the reservoir.
As soon as the UGD production method has been developed and the underground chamber is ready to go, the conventional wells will be capped. To drain the remaining mobile oil, increased well spacing combined with gravity drainage has been used.
The investment is undoubtedly going to pay off for the Laredo Oil (LRDC) eventually, if not already, as at the time of the acquisition, Mark See, CEO of Laredo Oil, added that with the acquisition of SORC, Laredo Oil (LRDC) now has exclusive rights to utilize that technology on its own assets and those of its industry partners.