August 23, 2019, Vancouver, Canada – Renaissance Oil Corp. (“Renaissance” or the “Company”) (TSX-V:ROE / OTCQB: RNSFF) reports its second quarter 2019 results. All dollar figures are Canadian dollars, unless otherwise noted.
HIGHLIGHTS FOR THE SECOND QUARTER 2019
- Revenue and operating netback in the second quarter of 2019 were $5.0 million and $0.8 million respectively, with production improving to 1,226 boe/d compared to 1,209 boe/d in the previous quarter;
- Renaissance closed on an equity private placement for 10 million common shares of the Company at a price of $0.20 per share for gross proceeds to the Company of $2.0 million; and
- The Company renegotiated its commercialization agreements for the sale of crude oil and natural gas in Mexico which the Company expects will result in relatively higher commodity sales prices compared to global benchmarks going forward, effective July 2019.
||Three Months Ended
||June 30, 2019
||March 31, 2019
||June 30, 2018
| Crude oil (Bbl/d)
| Natural gas (Mcf/d)
| Crude oil ($/Bbl)
| Natural gas ($/Mcf)
| Operating Costs
|Net income (loss)
| Per share, basic & diluted
In the second quarter of 2019, Renaissance, and its partner LUKOIL, continued 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.
In the second quarter of 2019, Renaissance renegotiated its commercialization agreements for the sale of crude oil and natural gas in Mexico which became effective July 2019. The new agreements incorporate reductions of some oil tariffs, increased sales prices for liquids rich natural gas and other adjustments the Company expects will result in relatively higher commodity sales prices compared to global benchmarks. For the first half of 2019 the Company received crude oil sales prices of approximately 90% of the average spot price of Brent Crude Oil, during the same period. Under the new commercialization contracts, in July 2019, Renaissance received approximately 94% of average spot price Brent Crude Oil during the same month. For the first half of 2019 the Company received natural gas sales prices of approximately 132% of the average spot price of Henry Hub Natural Gas, during the same period. In July 2019, Renaissance received approximately 144% of average spot price of Henry Hub Natural Gas during the same month.
Renaissance produced an average of 1,226 boe/d at the Mundo Nuevo and Malva blocks in Chiapas during the second quarter of 2019 which has been consistent with previous production levels while Topén-3 has been shut in. The Company is preparing for the upcoming drilling and work-over activities in Chiapas and has now negotiated all required land access requirements for this work program.
Renaissance continues to make progress on its journey to become a major Mexican energy producer.