December 16, 2015 – Vancouver, BC – Renaissance Oil Corp. (the “Company” or “Renaissance”) (TSX-V: ROE) is pleased to announce that the Company was awarded three petroleum blocks in Call 3 of Round 1 auction of 25 on-shore “Mature Field” petroleum blocks in Mexico (the “Mature Field Auction”). There were 40 other bidders competing in the Mature Field Auction for the 25 blocks. The Mature Field Auction was administered by the Comisión Nacional de Hidrocarburos (the “CNH”) of Mexico and was the country’s first award of on-shore petroleum blocks in 77 years to companies other than state-owned Petróleos Mexicanos (“PEMEX”).
“Renaissance has made a commitment to its business in Mexico and the award of these oil and gas properties is an important step toward the Company becoming a major operator in Mexico,” said Craig Steinke, President and Chief Executive Officer of Renaissance. “We are very pleased to have been awarded our top three prioritized properties which we expect to provide a solid foundation to grow Renaissance in Mexico.”
Renaissance focused its bidding strategy on Type 1 Blocks that by definition have reserves of less than 100 million barrels of oil remaining in place (“Type 1 Blocks”) and contain current production and facilities. The three blocks awarded to Renaissance, Mundo Nuevo, Topén and Malva, currently have aggregate gross daily production of approximately 650 barrels of crude oil and condensate and approximately 6 million cubic feet of natural gas. The blocks amount to approximately 74 KM² of surface area and have production growth opportunities through development drilling using modern technology, well workovers and field optimization. The Type 1 Blocks are all located in the state of Chiapas and are in close proximity of each other which are expected to offer synergies in their field developments.
The Mature Field Auction featured 21 Type 1 Blocks and the fields awarded to Renaissance were three of the six largest Type 1 Blocks offered as ranked by remaining oil in place. Together, the three blocks awarded to Renaissance represent approximately 44% of the oil in place that was awarded in the Type 1 Blocks Mature Field Auction, as estimated by CNH.
Renaissance is developing a high quality, diversified portfolio of mature fields and shale development opportunities in Mexico. Renaissance’s goal is to build significant oil and gas operations and play a major role in the historical reform of the energy industry in Mexico.