August 27, 2018, Vancouver, Canada – Renaissance Oil Corp. (“Renaissance” or the “Company”) (TSX-V:ROE / OTCQB: RNSFF) reports its second quarter 2018 results. All dollar figures are Canadian dollars, unless otherwise noted.
SECOND QUARTER 2018 HIGHLIGHTS
- Revenue in Q2 2018 reached a Company record of $7.0 million, an increase of 40% compared with the previous quarter, and higher by 31% compared to Q2, 2017;
- Production in Q2 2018 increased to 1,656 boe/d compared to 1,249 boe/d in the previous quarter and 1,552 boe/d in the second quarter of 2017;
- Renaissance, in conjunction with its partner, LUKOIL, drilled six new wells targeting the shallow Chicontepec formations at Amatitlán, and;
- The recent improvement in oil and gas prices continued into the second quarter as sales of crude oil averaged $80.68/bbl compared to $72.98/bbl in the previous quarter and $54.09/bbl in the second quarter of 2017, while sales of natural gas averaged $4.51/Mcf compared with $4.19/Mcf in the second quarter of 2017.
|Three Months Ended|
|Jun 30, 2018||Mar 31, 2018||Jun 30, 2017|
|Crude oil (Bbl/d)||596||434||633|
|Natural gas (Mcf/d)||6,360||4,892||5,512|
|Crude oil ($/Bbl)||80.68||72.98||54.09|
|Natural gas ($/Mcf)||4.51||4.92||4.19|
|Per share, basic & diluted||(0.01)||(0.01)||(0.01)|
The second quarter of 2018 saw continued oil field development by Renaissance, and its partner LUKOIL, at the Amatitlán block in Veracruz, Mexico. During the quarter, six additional wells were drilled intersecting the shallow Tertiary aged Chicontepec formations. To date sixteen Chicontepec wells, of a seventeen well program, have been drilled with the drilling of a seventeenth well now underway. Eleven of the new wells have undergone completion operations and been brought onto production with further completions expected to be concluded in the coming weeks. Renaissance has also completed workovers and repair operations on eight wells of the scheduled workover program.
Renaissance produced 1,656 boe/d at the Mundo Nuevo, Topén and Malva blocks (the “Chiapas Blocks”). The rising prices for crude and natural gas continued into the second quarter of 2018 resulting in a record high quarterly revenue of $7 million. The Company is currently contracting drilling services and awaiting rig certification to initiate the Chiapas development program. This drilling program of four new wells and a series of workovers to existing wells, is expected to increase the Company’s production base in Mexico.
Renaissance continues to make progress on its journey to become a major Mexican energy producer.