Renaissance Reports First Quarter Results and Corporate Update

May 30, 2019, Vancouver, Canada – Renaissance Oil Corp. (“Renaissance” or the “Company”) (TSX-V:ROE / OTCQB: RNSFF) reports its first quarter 2019 results.  All dollar figures are Canadian dollars, unless otherwise noted.

HIGHLIGHTS FOR THE FIRST QUARTER 2019

  • Revenue and operating netback in the first quarter of 2019 was $4.8 million and $0.7 million respectively;
  • Renaissance received a 20-month extension to December 27, 2020, from the Comisión Nacional de Hidrocarburos (“CNH”) to complete the work programs on the Company’s 100% held producing properties in the state of Chiapas.;
  • Evaluation of the cores acquired from the Upper Jurassic formations at Amatitlán confirms the presence of the critical characteristics of a commercial play; and
  • Renaissance has entered into an agreement for the transfer of its non-core Ponton license to a Mexico based oil and gas company for consideration of US$1,000,000, upon closing, plus a gross overriding royalty of 10% on future oil and gas revenue from Ponton, for maximum aggregate royalties of US$3,000,000.
Three Months Ended
Mar 31, 2019 Dec 31, 2018 Mar 31, 2018
Production
  Crude oil (Bbl/d) 371 392 434
  Natural gas (Mcf/d) 5,026 4,926 4,892
Total (Boe/d) 1,209 1,213 1,249
Prices
  Crude oil ($/Bbl) 76.13 80.13 72.98
  Natural gas ($/Mcf) 5.03 6.28 4.92
Revenue 4,817,815 5,854,526 5,019,904
  Royalties (3,798,835) (5,145,102) (3,867,146)
  Operating Costs (297,820) (481,948) (441,676)
Operating netback 721,160 227,476 711,082
Net income (loss) (623,200) 934,282 (1,845,088)
  Per share, basic & diluted 0.00 (0.00) (0.01)

PRESIDENT’S MESSAGE

In the first quarter of 2019, Renaissance, and its partner LUKOIL, continued to negotiate a development plan on the Amatitlán block for the commercialization of all prospective zones, with particular emphasis on the Upper Jurassic formations. Negotiations include the migration of the Amatitlán CIEP into a contract of exploration and extraction, pursuant to the constitutional amendments of December 20, 2013 reforming the Mexican Energy Industry.

Renaissance produced an average of 1,209 boe/d at the Mundo Nuevo and Malva blocks in Chiapas during the first quarter of 2019. First quarter production from in the Chiapas blocks was reduced due to a temporary shut-in of the Topén-3 well while the Company prepares for the upcoming drilling and work-over activities and negotiates further land access requirements for this work program.

Sale of Ponton Block
As the Ponton property is no longer a strategic asset, Renaissance has entered into an agreement for the transfer of this license to a Mexico based oil and gas company for consideration of US$1,000,000, upon closing, plus a gross overriding royalty of 10% (a “GORR”) on future oil and gas revenue from Ponton, for maximum aggregate royalties of US$3,000,000. Renaissance has received a cash deposit of US$250,000 towards the closing amount of the Transaction.

“As a result of winning all three of the Company’s targeted producing oil and gas blocks in the state of Chiapas, in Round 1.3, and entering into a partnership with PEMEX and LUKOIL to develop the 60,000 acre Amatitlán block, developing the Ponton property has become less of a strategic priority,” stated Craig Steinke, Chief Executive Officer of Renaissance. “The transfer of this property to a competent third-party operator will be the fastest path for Ponton’s field development and with the GORR in place, Renaissance will participate in the upside of any future development success.”

Interest Payment
Renaissance announces that pursuant to the convertible debentures issued on March 6, 2019 (the “Convertible Debentures”), the Company has elected to issue common shares of the Company (the “Common Shares”) in satisfaction of the aggregate accrued interest owing on such Convertible Debentures. Under the terms of the Convertible Debentures, interest has accrued at a rate of 10% per annum resulting in a total amount owing of $119,178 as at May 31, 2019. The Company will satisfy the aggregate accrued interest owing by issuing 847,036 Common Shares having a deemed price of approximately $0.14 per share. The price per share was determined using the 30-day volume weighted average price of the Common Shares on the TSX Venture Exchange (the “TSXV”) ending on May 30, 2019.

Debt Conversion
The Company also announces that it intends to settle outstanding indebtedness in the amount of $292,500 (the “Debt”) by the issuance of 1,950,000 Common Shares having a deemed price of $0.15 per share. The Debt includes amounts due to Renaissance’s Head of Governmental Affairs in Mexico.

The Common Shares to be issued to satisfy the Debt and in satisfaction of the aggregate accrued interest owing on the Convertible Debentures will be subject to a four month hold period and are subject to the acceptance of the TSXV.

After giving effect to issuance of Common Shares in satisfaction of the Debt and the aggregate accrued interest owing on the Convertible Debentures, the Company will have an aggregate of 282,778,511 Common Shares issued and outstanding.

Renaissance continues to make progress on its journey to become a major Mexican energy producer.

RENAISSANCE OIL CORP.
Per:
Craig Steinke
Chief Executive Officer

For further information contact:
Craig Steinke, Chief Executive Officer  |  Tel: 1.604.536.3637
Kevin J. Smith, Vice President, Business Development  |  Tel: 1.403.200.9047

This news release should be read in conjunction with the Company’s financial statements for the three months ended March 31, 2019 and related management’s discussion and analysis. These filings are available for review on SEDAR at www.sedar.com.

Abbreviations

bbl or bbls barrel or barrels Mcf thousand cubic feet
bbls/d barrels per day Mcf/d thousand cubic feet per day
boe barrels of oil equivalent MMcf million cubic feet
boe/d barrels of oil equivalent per day MMcf/d million cubic feet per day