Operations

Renaissance is developing a high quality, diversified shale and mature fields portfolio for development in Mexico.

By applying latest technologies, developed in North America, the Company’s team has evaluated high potential shale and mature fields opportunities throughout Mexico.

In January 2017,  PJSC LUKOIL, one of the world’s largest oil producers chose Renaissance as their partner for the Integrated Exploration and Production Contract for the Amatitlán block in Mexico.  Amatitlán is to be the first block developed by Renaissance that the Company has identified with significant prospectively for shale development in Mexico.

About Amatitlán

Discovered in 1962, and still largely undeveloped, the main field Amatitlán has produced over 175,000 bbls of light oil ranging from 34° to 44° API with peak production of 650 bbl/d in 2005.  As a result of the lack of recent drilling and development activities on the 230 km2 (56,800 acres) Amatitlán block, production has currently declined to negligible volumes.  The Comisión Nacional de Hidrocarburos evaluation of resources effective January 1, 2016 estimates Amatitlán contains, in the Chicontepec formation only, 4.2 billion bbls of crude oil and 3.33 trillion cubic feet of natural gas originally in place.

Renaissance’s goal is to apply modern oilfield development technologies in Amatitlán to re-establish production in the underdeveloped Chicontepec formation and to commercialize the Upper Jurassic shale formations.  Renaissance’s analysis indicates the Upper Jurassic interval is an oil-rich, hybrid shale system in the Amatitlán block and is highly prospective for targeted stacked pay development of this thick unconventional resource.  The Upper Jurassic shale interval is widely considered to be the major carbonate source rock for the oil-rich Chicontepec formation but the Upper Jurassic formations have not been commercially developed.

The Company and LUKOIL have agreed that Renaissance will take the lead role in operations for joint development of the Amatitlán block currently held by Pemex-Exploración y Producción.  The Integrated Exploration and Production Contract is expected to migrate into a Contract of Exploration and Extraction in Q4 2017 with an improved fiscal regime, pursuant to the constitutional amendments of December 20, 2013 reforming the Mexican Energy Industry.  Upon closing of the Transaction, and with the expected migration to a Contract of Exploration and Extraction (“CEE”), the Amatitlán CEE will join the existing portfolio of four CEEs now held by Renaissance.

Renaissance was awarded its top three choices in December 2015 in Mexico’s historic first auction of oil and gas properties in 80 years:

Mundo Nuevo, Topén, Malva

The blocks are all in close proximity to each other in the State of Chiapas, which will allow operational efficiencies.

About Our Chiapas Blocks

Mundo Nuevo

The Mundo Nuevo block is located 42km southwest of the city of Villahermosa, Tabasco with an areal extent of 27.7 km2 (6,845 acres). The Mundo Nuevo field, a middle Cretaceous fractured carbonate reservoir, was discovered in 1977. This field was developed by PEMEX, Mexico’s state owned oil and gas company, through the drilling of 14 wells, reaching peak production of over 15,000 barrels per day (bbls/day) of natural gas liquids, in the early 1980s. This field’s average production for May 2016 was approximately 215 bbls/day of light oil and 2.7 MMcf/d of natural gas with an average reservoir depth of 3,580 meters.

With the advantage of 3D seismic data, acquired since the original wells were drilled, Renaissance has identified numerous potential new development well locations. In order to satisfy the minimum work commitment for Mundo Nuevo, the Company is required to drill one development well.

According to information publicly released by CNH, during the auction process, and as of yet unconfirmed by the Company’s own qualified reserves evaluators in accordance to COGEH and NI 51-101, the Mundo Nuevo field was estimated to have contained original volumes in place of 86 million bbls of natural gas liquids and has had cumulative production of 35 million bbls of natural gas liquids, as at January 1, 2015.

Topén

The Topén block is located 45km southwest of the city of Villahermosa, Tabasco with an areal extent of 25.3km2 (6,251 acres). The Topén field, an upper Cretaceous fractured carbonate reservoir, was discovered in 1978. PEMEX developed this field through the drilling of five wells, reaching peak production of over 1,500 barrels bbls/day of medium crude oil, in the mid 1980s. This field’s average production for May 2016 was approximately 225 bbls/day of light oil and 0.5 MMcf/d, with an average reservoir depth of 3,300 meters.

The Topén field is delineated with 3D seismic data acquired since the original wells were drilled. Renaissance has identified numerous new development well locations and potential for significant field extensions as well as a previously untested area, supported by seismic amplitude analysis.

In order to satisfy the minimum work commitment for Topén, the Company is required to drill one development well. According to publicly released information by CNH, during the auction process, and as of yet unconfirmed by the Company’s own qualified reserves evaluators, in accordance to COGEH and NI 51-101, the Topén block was estimated to have contained original volumes in place of 40 million bbls of oil and has had cumulative production of 8 million bbls of oil, as at January 1, 2015.

Malva

The Malva block is located 61km southwest of the city of Villahermosa, Tabasco with an areal extent of 21.2km2 (5,239 acres) The Malva field, an upper Cretaceous limestone reservoir, was discovered in 2003. PEMEX developed this field through the drilling of four wells, reaching peak production of over 2,000 barrels bbls/day of light crude oil, in the late 2000s. This field’s average production for May 2016 was approximately 265 bbls/day of light oil and 2.7 MMcf/d, with an average reservoir depth of 2,680 meters. The Malva field is delineated with 3D seismic data.

Renaissance used high tech seismic technology and advanced structural interpretation to identify a number of untested potential hydrocarbon amplitudes, new well locations and field optimization opportunities in the existing producing area. In order to satisfy the minimum work commitment for Malva, the Company is required to drill two wells.

According to information publicly released by CNH, during the auction process, and as of yet unconfirmed by the Company’s own qualified reserves evaluators in accordance to COGEH and NI 51-101, the Malva block was estimated to have contained original volumes in place of 13 million bbls of oil and has had cumulative production of 3 million bbls of oil, as at January 1, 2015.

For these blocks, Renaissance sees significant opportunity for additional value creation in new well locations as well as application of innovative re-completion technologies.

Renaissance won the three Chiapas blocks by very small differentials of less than 2.5% above each of the second place bid values. Well-attended auction processes saw over 40 companies vying to be the first onshore operators in Mexico’s historic privatization of the energy sector.

In August 2016, Renaissance acquire the license for the Pontón block from the December 2015 “mature fields” auction to become the fourth license held by the Company.

Pontón

The Pontón block is located 25km southeast of Panuco city, Veracruz, with an areal extent of 12km2 (2,965 acres). The Pontón field was discovered and put into production in 1971 in the Upper Jurassic San Andres formation. In May 1991, production was commenced in the Lower Cretaceous Tamaulipas Inferior formation. PEMEX developed this field through the drilling of 14 wells in the 1970s. The Upper Jurassic San Andres formation has an average reservoir depth of 1,266 meters and the Lower Cretaceous Tamaulipas Inferior formation has an average reservoir depth of 925 meters.

According to information publicly released by CNH during the auction process and as of yet unconfirmed by the Company’s own qualified reserves evaluators, in accordance to COGEH and NI 51-101, the Pontón field was estimated to have contained original volumes in place of 7.3 million bbls of oil and has had cumulative production of 0.8 million bbls of oil, as at January 1, 2015.

Renaissance has identified additional drilling opportunities and potential work over candidates from existing wells to put the Pontón field back into production and grow its reserves and potential cash flow. Upon execution of the license contract the Company would be required to drill one development well plus other development activities to meet the minimum work commitment.

Renaissance is focused exclusively on Mexico.
Renaissance signed 25 year licenses for three Chiapas blocks