Renaissance Oil Corp. RNSFF

Haywood Securities

[allnrg]

Good to see #62 buying large again for the past couple days Haywood Securities Report RESEARCH REPORT - AUGUST 30, 2017 Christopher Jones, CFA, [e-mail] | Adam McBride, CA, CFA, [e-mail] Renaissance Oil Corp. (ROE-V, $0.18) | Rating: Buy; Target: $0.40; Risk: Very High Q2 RESULTS IN LINE; ENTERING INITIAL DRILLING AND EXPLORATION PHASE OF ITS VALUE CURVE Renaissance (ROE) released its Q2/17 financial and operating results. Highlights: In line production; production flat versus prior periods. ROE reported production of 1,552 boe/d, in line with our estimate of 1,620 boe/d. Production in the quarter was relatively flat from prior periods which highlights the low decline associated with the Company's mature producing fields. Reiterate Buy rating and $0.40/sh target price. ROE is about to enter the initial drilling and exploration phase of its value curve. As uncertainty decreases and knowledge increases, we expect operational momentum to push the stock higher from current levels. Migration of the Amatitln block to a Contract of Exploration and Extraction is expected to take place in Q1/18. In our view, this is a significant near-term catalyst for the Company as it will transition ROE into a shale producer in a discovered but undeveloped field with highly prospective stacked pay development upside that has the potential to spin off significant cash flow. Supporting development, ROE has contracted quality services by way of a subsidiary of Weatherford International to perform drilling operations on the Amatitln block, which we view positively. With Mexico 's emergence as a potential mecca for oil development and growth over the coming years, we see ROE as perhaps the best way to capture exposure to this unique opportunity. Our target price of $0.40/sh is based on a 2.0x 2018e EV/DACF plus a heavily risked upside of $0.25/sh For the full report go to: https://clients.haywood.com/uploadfiles/secured_reports/ROEAug302017.pdf?inf_contact_key=2534c0f2b0e8960bcef968dcd6b119b3e6ccd2f529113d02d2ac3e820fb592a8 Read more at https://www.stockhouse.com/companies/bullboard?symbol=v.roe&postid=26643853#rqP1sB3bThuTQtS3.99