May 27, 2021, Vancouver, Canada – Renaissance Oil Corp. (“Renaissance” or the “Company”) (TSX-V:ROE / OTCQB: RNSFF) reports its first quarter 2021 results.  All dollar figures are in Canadian dollars, unless otherwise noted.

RESULS FOR THE FIRST QUARTER OF 2021

  • Revenue and operating netback in the first quarter of 2021 were $5 million and $0.8 million respectively, with production of 1,180 boe/d in line with previous quarters.
Three Months Ended
Mar 31, 2021 Dec 31, 2020 Mar 31, 2020
Production
  Crude oil (Bbl/d) 338 343 371
  Natural gas (Mcf/d) 5,054 5,096 5,240
Total (Boe/d) 1,180 1,193 1,244
Prices
  Crude oil ($/Bbl) 68.98 52.18 54.90
  Natural gas ($/Mcf) 5.20 4.79 4.32
Revenue 4,468,234 3,802,427 3,868,241
  Royalties (3,505,662) (2,970,987) (3,035,015)
  Operating Costs (212,535) (229,319) (223,374)
Operating netback 750,037 602,121 609,852
Net income (loss) (897,211) (23,185,606) 1,624,417
  Per share, basic & diluted (0.00) (0.07) 0.01
Funds flow from operations1 (118,389) (1,426,669) (136,086)
  Per share, basic & diluted1 (0.00) (0.00) (0.00)

1See Non-GAAP Measures Section 13 of the MD&A

Subsequent to Q1 2021, Renaissance entered into a definitive arrangement agreement pursuant to which Reconnaissance Energy Africa Ltd. (“ReconAfrica”) will acquire all of the issued and outstanding common shares and convertible securities of Renaissance (the “Transaction”).

PRESIDENT’S MESSAGE
With ReconAfrica’s recent drilling success in the Kavango Basin, the Company’s Board of Directors determined that consolidating all interests in the Kavango Basin is an accretive transaction for both ReconAfrica and Renaissance. The Company therefore entered into a definitive arrangement agreement upon which ReconAfrica will acquire all of the issued and outstanding common shares and convertible securities of Renaissance. Completion of the Transaction will, among other things, require the approval of at least two-thirds (662/3 percent) of the votes cast by Renaissance shareholders, optionholders and warrantholders, voting together as a single class, at Renaissance’s upcoming annual general and special meeting to be held on July 8, 2021.

The global impact of the COVID-19 pandemic has fostered a great deal of uncertainty as to the health of the global economy over the near term. For the Amatitlán Contract, this has caused delays in further negotiations to migrate the contract. Renaissance, and its partner LUKOIL, continue to negotiate towards the development plan for the Amatitlán block for the commercialization of all prospective zones, with particular emphasis on the Upper Jurassic formations. Specifically, management is progressing the migration of Amatitlán from a service contract to a mutually beneficial contract structure for all partners.

The Company produced an average of 1,180 boe/d at the Mundo Nuevo and Malva blocks in Chiapas during Q1 2021, which has been consistent with previous production levels while Topén-3 has remained shut in. The Company continues to pursue various measures of relief, provided by Mexican oil and gas regulations, to required work programs in Chiapas due to the operational and logistical challenges created by the COVID-19 pandemic. While the deadline to complete these work programs was in December 2020, the Comisión Nacional de Hidrocarburos has offered extensions to licence holders which Renaissance has applied for.

Renaissance has deferred royalty payments due since September 2019. Failure to make the royalty payments may result in penalties and could jeopardize the license agreements on the Company’s Chiapas properties.

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

RENAISSANCE OIL CORP.
Per:
Craig Steinke
Chief Executive Officer

For further information contact:
Craig Steinke, Chief Executive Officer  |  Tel: 1.604.536.3637
Carlos Escribano, Chief Financial Officer |  Tel: 1.604.536.3637

This news release should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2020 and related management’s discussion and analysis. These filings are available for review on SEDAR at www.sedar.com.