May 13, 2016 – Vancouver, BC – Renaissance Oil Corp. (“Renaissance” or the “Company”) (TSX-V: ROE) is pleased to announce the Company has executed twenty five year license contracts with the Comisión Nacional de Hidrocarburos (the “CNH”) for the Mundo Nuevo, Topén and Malva blocks, located in Chiapas, Mexico which were awarded to the Company in the December 2015 “mature fields” auction. Renaissance has now entered into a ninety day transition period where the operations of these permits, collectively producing approximately 700 Bbls/day, will be transferred from Petróleos Mexicanos (“PEMEX”) to the Company.
Renaissance is pleased to announce it has entered into three surety bond agreements with a global financial company in aggregate of approximately USD $8 million, as required by the CNH, towards the guarantee of performance of the minimum work programs. Successfully securing the surety bonds, from a third party, allows Renaissance to meet the financial requirements to execute the license contracts without committing the Company’s capital or the requirement of additional equity financing.
Renaissance is currently designing an appraisal plan for submission to the CNH, for each of the three Mexico blocks, and expects to receive CNH approvals in the fourth quarter of 2016, after which, Renaissance will have one year to complete the minimum work programs. The Company expects the majority of the development activities of the minimum work programs will be conducted in 2017.
“Establishing Renaissance as an early onshore producer achieves a key objective and will play a pivotal role in advancing the Company’s operations throughout Mexico’s underdeveloped hydrocarbon base”, stated Craig Steinke, Chief Executive Officer of Renaissance. ”The provisions of the surety bonds provide Renaissance significant financial flexibility with regards to the current properties and future acquisitions.”
Renaissance has recently received notice from the CNH that the Company has become eligible to acquire the license for the Pontón Block from the December 2015 “mature fields” auction. Pontón is approximately 12km² (2,965 acres) and, although not currently in production, has produced approximately 800,000 barrels of light oil (34° API) to date. Renaissance has approximately four months to exercise the option to acquire the Pontón block.
Renaissance is a growing energy company focused on acquiring and developing mature producing fields and unconventional opportunities in Mexico.
RENAISSANCE OIL CORP.
Chief Executive Officer
For further information contact:
Craig Steinke, Chief Executive Officer
Kevin J. Smith, Vice President, Business Development