November 14, 2017 – Vancouver, BC – Renaissance Oil Corp. (“Renaissance” or the “Company”) (TSX-V: ROE) is pleased to announce, in conjunction with its partner, Lukoil, the Company has completed the fourth workover at the Amatitlán block in Veracruz, Mexico. Completed operations are as follows:
- Performed an organic solvent clean out of existing well perforations and a high stimulation recompletion of a lower Chicontepec interval;
- The well initially flowed back over 750 bbls/d of stimulation fluid and crude oil (up to 40% oil cut), and 0.5 MMcf/d gas at 1,100 psi wellhead pressures;
- The well was flow tested for several days recovering over 1,000 bbls of stimulation fluid as well as light oil and gas in varying volumes and rates, with the most recent production observed at approximately 60 bbls/d of light oil;
- Operations are underway to clean out the well and install an artificial lift system to stabilize production;
- Gross costs for the fourth workover are estimated at C$460,000, or under C$8,000 per expected producing barrel; and
- The workover rig will be moved to the fifth location of the six well workover campaign, with expected completion of the campaign by late-November.
Oil production from the first two “minor” workovers remains stable at a combined 50 bbls/d. With the addition of the third and fourth “heavy” workovers, oil production capacity for the Amatitlán block is currently estimated at 170 Bbls/d, once stimulation fluids are recovered.
Renaissance has completed the repair of approximately 30 km of existing community roadways and has built and reconditioned several large multi-well pads for drilling and workovers. Drilling rig crews and equipment have received all required certifications and are expected to be moved to the first drilling location in the coming weeks, subject to finalizing drilling permits.
Social Investment Program
Renaissance and Lukoil have initiated a Social Investment Program for the communities within the Amatitlán block. Engineering and infrastructure improvement projects have been defined and are expected to be completed in the next 6-8 months. The C$660,000 budget for the Social Investment Program will be shared by the partners of Amatitlán.
Renaissance continues to make progress on its journey to become a major Mexican energy producer.