November 30, 2018, Vancouver, Canada – Renaissance Oil Corp. (“Renaissance” or the “Company”) (TSX-V:ROE / OTCQB: RNSFF) reports its third quarter 2018 results. All dollar figures are Canadian dollars, unless otherwise noted.
THIRD QUARTER 2018 HIGHLIGHTS
- Revenue and operating netback in the third quarter of 2018 reached Company records of $7.1 million and $0.8 million, respectively;
- On the 60,000 acre Amatitlán block, Renaissance, with its partner LUKOIL, completed a 17 shallow well drilling program targeting the Chicontepec tight sand formations and additionally, spud a 3,550 meter well to evaluate important deeper zones, and;
- Strong crude oil and natural gas prices continued into the third quarter as sales of crude oil averaged $84.27/bbl, compared to $80.68/bbl in the previous quarter and $54.09/bbl in the third quarter of 2017, while sales of natural gas averaged $5.03/Mcf compared to $4.51/Mcf in the previous quarter and $4.24/Mcf in the third quarter of 2017.
|Three Months Ended|
|Sep 30, 2018||Jun 31, 2018||Sep 30, 2017|
|Crude oil (Bbl/d)||547||596||641|
|Natural gas (Mcf/d)||6,010||6,360||5,957|
|Crude oil ($/Bbl)||84.27||80.68||56.64|
|Natural gas ($/Mcf)||5.03||4.51||4.24|
|Per share, basic & diluted||(0.00)||(0.01)||0.00|
Operations during and subsequent to the third quarter of 2018 reached a milestone in the ongoing development of the Amatitlán block (Veracruz, Mexico) by Renaissance and LUKOIL. A 17 well drilling program has been completed, intersecting the shallow Tertiary Chicontepec formations. These wells have undergone completion operations and been brought onto production. Renaissance has also completed work-overs and repair operations on eight existing Chicontepec wells. Further, the Renaissance Lukoil partnership has now drilled and cored a deep 3,550 meter well which, with the 17 Chicontepec wells and work-overs, completes the US$45.5 million work program commitment on Amatitlán.
Renaissance produced an average of 1,548 boe/d at the Mundo Nuevo, Topén and Malva blocks (the “Chiapas Blocks”). Third quarter production on the Chiapas blocks was reduced from the previous quarter due to a temporary shut in of the Topén-3 well while the Company conducts a work-over on this well and negotiates land access for the upcoming new drilling and work-over operations.
Strong prices for crude oil and natural gas continued into the third quarter of 2018 resulting in a record high quarterly revenue of $7.1 million and record operating netbacks of $0.8 million.
Renaissance continues to make progress on its journey to become a major Mexican energy producer.