Renaissance Reports Fourth Quarter and Full Year 2018 Results

May 1, 2019, Vancouver, Canada – Renaissance Oil Corp. (“Renaissance” or the “Company”) (TSXV:ROE / OTCQB: RNSFF) reports its fourth quarter and full year 2018 results. All dollar figures are Canadian dollars, unless otherwise noted.

HIGHLIGHTS FOR THE FOURTH QUARTER & FULL-YEAR 2018

  • Revenue and operating netback in the fourth quarter of 2018 was $5.9 million and $0.2 million, respectively;
  • On the 60,000 acre Amatitlán block, Renaissance, with its partner LUKOIL, completed the 17 shallow well drilling program targeting the Chicontepec tight sand formations and additionally, drilled and cored a 3,550 meter well to evaluate important deeper zones;
  • Evaluation of the cores acquired from the Upper Jurassic formations at Amatitlán confirms the presence of the critical characteristics of a commercial play; and
  • Strong crude oil and natural gas prices resulted in record annual revenue of $25.0 million for 2018 compared with $22.7 million in 2017. Crude oil sales averaged $80.77/bbl in 2018 compared to $58.23/bbl in the previous year while sales of natural gas averaged $5.19/mcf compared to $4.26/mcf in 2017.
Three Months Ended Year Ended
Dec 31, 2018 Dec 31, 2017 2018 2017
Production
  Crude oil (Bbl/d) 392 654 492 636
  Natural gas (Mcf/d) 4,926 6,081 5,548 5,912
Total (Boe/d) 1,213 1,677 1,417 1,622
Prices
  Crude oil ($/Bbl) 80.13 66.65 80.77 58.23
  Natural gas ($/Mcf) 6.28 4.42 5.19 4.26
Revenue 5,854,526 6,371,664 25,019,241 22,713,195
  Royalties (5,145,102) (4,973,238) (20,436,687) (17,944,440)
  Operating Costs (481,948) (652,575) (2,163,437) (1,886,542)
Operating netback 227,476 745,851 2,419,117 2,849,213
Net income (loss) 934,282 (3,343,355) (904,995) (5,171,920)
  Per share, basic & diluted (0.00) (0.01) (0.00) (0.03)

*See Non-GAAP Measures – Section 12 of the MD&A

PRESIDENT’S MESSAGE
In 2018, Renaissance continued its role as a leading onshore operator in Mexico with the drilling of 18 wells last year, which accounted for approximately 11% of the wells drilled in Mexico in 2018. With its partner LUKOIL, the Company completed the US$45.5 million work program commitment on the Amatitlán block in Veracruz, Mexico. This achievement included the drilling of 17 wells intersecting the shallow Tertiary Chicontepec formations, which have undergone completion operations and been brought onto production, and the additional drilling and coring of a 3,550 meter well testing the deeper Upper Jurassic formations.

Renaissance and Lukoil are negotiating 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 1,417 boe/d at the Mundo Nuevo, Topén and Malva blocks (the “Chiapas Blocks”) during 2018. Annual and fourth quarter production from 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.

This includes discussions with the Comisión Nacional de Hidrocarburos over potential amendments to the plans in order to expand the wells to include a detailed side wall coring program to evaluate a potential new play in the Tertiary section.

Strong prices for crude oil and natural gas continued into the fourth quarter of 2018, resulting in a record high annual revenue of $25.0 million and operating netbacks of $2.4 million.

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 year ended December 31, 2018 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