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 $4.26/mcf in 2017.
|Three Months Ended||Year Ended|
|Dec 31, 2018||Dec 31, 2017||2018||2017|
|Crude oil (Bbl/d)||392||654||492||636|
|Natural gas (Mcf/d)||4,926||6,081||5,548||5,912|
|Crude oil ($/Bbl)||80.13||66.65||80.77||58.23|
|Natural gas ($/Mcf)||6.28||4.42||5.19||4.26|
|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
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.