Renaissance Oil Corp. ("Renaissance" or the "Company") (TSX-V:ROE) reports its first quarter 2017 ("Q1 2017") results. All dollar figures are Canadian dollars, unless otherwise noted.
In Q1 2017, Renaissance made major progress towards realizing its strategic objectives. In February 2017, the Company partnered with Lukoil by acquiring a 25% interest in the Amatitlán Contract. The Company is focused on developing the Upper Jurassic shale and shallower Tertiary formations present in the Amatitlán block which the Company believes holds significant resource potential. Renaissance has a strategic focus to be a leading player in the development of the significant but uncommercialized shale resources in Mexico. The Amatitlán block is the first property operated, by Renaissance, with significant prospectively for shale development and represents an important milestone in the Company's growth plans in Mexico. The Company has finalized initial development plans for the Amatitlán block with Petróleos Mexicanos ("PEMEX") and will initiate the drilling program in Q3 2017 for six wells targeting the Chicontepec formations in the Tertiary and one well targeting the deeper Upper Jurassic shale formations. Renaissance has taken the lead role in operations at Amatitlán and holds options to increase its interest in the Amatitlán Contract to 62.5%, upon successful development of the property.
On April 26, 2017, Renaissance received approval from the Comisión Nacional de Hidrocarburos for the Appraisal and Development Plans of the Mundo Nuevo, Topén and Malva blocks, located in Chiapas, Mexico (the "Chiapas Blocks"). In view of enhancing production, Renaissance expects to drill 3 - 4 new wells and to workover and repair existing wells on the Chiapas Blocks, in the next 12 months.
Renaissance has made significant strides in reducing operating costs for the producing Chiapas Blocks. Cost reductions were matched by higher commodity prices in Q1 2017, resulting in an increase of 132% in operating netback.
In April 2017, Renaissance completed an equity financing for gross proceeds of $12.8 million to fund its 2017 drilling and capital expenditure plans.
Renaissance continues to make progress on its journey to become a major Mexican energy producer.
For further information, please visit our website at www.renaissanceoil.com.
SOURCE: Renaissance Oil Corp.
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