Renaissance Oil receives payment for oil sale to Pemex
2016-06-20 10:02 ET - News Release
Mr. Craig Steinke reports
RENAISSANCE ANNOUNCES FIRST REVENUE FROM OIL AND GAS OPERATIONS, BECOMING SECOND LARGEST PETROLEUM PRODUCER IN MEXICO AFTER PEMEX
Renaissance Oil Corp. has received payment for its first sale of crude oil, condensate and natural gas to the Mexican state oil company, Petroleos Mexicanos (Pemex). The combined hydrocarbon production, from the company's three properties in Mexico, is approximately 1,700 barrels of oil equivalent per day. As a result, Renaissance is the second-largest petroleum producer in Mexico after Pemex.
Since the May 10, 2016, signing of the 25-year licence contracts for the Mundo Nuevo, Topen and Malva blocks in Chiapas, Mexico, Renaissance has entered into a 90-day transition period whereby Pemex is transferring operations of the properties to the company. During this period, the company has been receiving detailed production reports, including daily estimates of production and crude oil and natural gas compositions. Production for these properties, over the period of May 10 to May 31, 2016, was reported at approximately 708 barrels per day (bbl/d) of crude oil and 5.9 million cubic feet per day of natural gas. Renaissance received an average price of $39.59 (U.S.) per bbl for its crude oil and condensate production and $2.77 (U.S.) per 1,000 cubic feet of natural gas. After deductions for operating costs and royalties, Renaissance is generating positive operating cash flow from its Mexico properties.
"Renaissance is pleased with the quality of detailed information received and competent, low-cost operations of our properties," stated Craig Steinke, chief executive officer. "As Renaissance transitions into the properties as operator, our focus is to optimize field efficiencies and to increase the production and cash flow from these properties."
Renaissance continues to make progress on its journey to become a major Mexican energy producer.
We seek Safe Harbor.