November 25, 2020, Vancouver, Canada – Renaissance Oil Corp. (“Renaissance” or the “Company”) (TSX-V:ROE / OTCQB: RNSFF) reports its third quarter 2020 results.  All dollar figures are in Canadian dollars, unless otherwise noted.

RESULTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2020

  • Renaissance closed the option agreement for a 50% working interest, in all rights from surface to basement, in a large Petroleum Licence, comprising 2.45 million acres in the deep Kavango sedimentary basin, in Botswana, Africa (the “Licence”); and
  • Revenue and operating netback in the third quarter of 2020 were $3.3 million and $0.4 million respectively, with production of 1,206 boe/d in line with previous quarters.
Three Months Ended
Sep 30, 2020 June 30, 2020 Sep 30, 2019
Production
  Crude oil (Bbl/d) 348 364 381
  Natural gas (Mcf/d) 5,146 5,101 5,300
Total (Boe/d) 1,206 1,215 1,264
Prices
  Crude oil ($/Bbl) 49.91 30.32 77.31
  Natural gas ($/Mcf) 3.87 3.21 4.42
Revenue 3,264,029 2,551,370 4,832,555
  Royalties (2,626,206) (1,967,756) (3,747,438)
  Operating Costs (229,374) (240,730) (238,742)
Operating netback 408,449 342,884 846,375
Net income (loss) (1,534,924) (2,163,374) (266,995)
  Per share, basic & diluted (0.00) (0.01) (0.00)
Funds flow from operations1 (220,464) (416,812) (70,149)
  Per share, basic & diluted1 0.00 0.00 (0.00)

1See Non-GAAP Measures Section 13 of the MD&A

PRESIDENT’S MESSAGE
In light of the ongoing political and regulatory challenges in Mexico, the Company determined that until government policies become more favourable, it is in the best interest of shareholders for management to diversify Renaissance’s interests outside of Mexico, while continuing to maintain its existing, high potential assets, within Mexico. On June 16, 2020, the Company entered into a binding letter agreement (the “Letter Agreement”) to acquire an option for a 50% working interest, in all rights from surface to basement, for the Botswana Licence. The Company made a cash payment of $100,000 and issued 30 million shares pursuant to the terms of the option agreement.

This opportunity in Botswana provides Renaissance with an important and potentially high impact oil and gas play, through the opening of the Kavango basin, a previously unrecognized, deep Permian aged sedimentary basin in northwestern Botswana and northeastern Namibia. Botswana is considered a stable, industry friendly jurisdiction which offers some of the most attractive fiscal terms worldwide.

Renaissance, and its partner LUKOIL, continue 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.

The Company produced an average of 1,206 boe/d at the Mundo Nuevo and Malva blocks in Chiapas during the third quarter of 2020, which has been consistent with previous production levels while Topén-3 has been shut in. The global impact of the COVID-19 pandemic as well as declines in spot prices for oil and gas have fostered a great deal of uncertainty as to the health of the global economy over the near term. The Company continues to pursue various measures of relief, provided by Mexican oil and gas regulations, to required work programs in Chiapas due to the operational and logistical challenges created by the COVID-19 pandemic.

Renaissance has deferred royalty payments due since September 2019. Management continues discussions with funding sources in Europe, North America and Mexico, however, there is no assurance further financing efforts will be successful. Failure to make the royalty payments may result in penalties and could jeopardize the license agreements on the Company’s Chiapas properties.

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

RENAISSANCE OIL CORP.
Per:
Craig Steinke
Chief Executive Officer

For further information contact:
Craig Steinke, Chief Executive Officer  |  Tel: 1.604.536.3637
Carlos Escribano, Chief Financial Officer | Tel: 1.604.536.3637

Cautionary Note Regarding Forward-Looking Statements
This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). Certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects”, “believes”, “aims to”, “plans to” or “intends to” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Such statements include, without limitation, statements with respect to the final acceptance of the issuance of the Shares by the TSXV. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed by such forward-looking statements or forward-looking information, including the business of the Company, the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks, and delay, inability to complete a financing or failure to receive regulatory approvals. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.