ROE cleared for more production development, drilling VANCOUVER, July 9, 2018 /CNW/ - Renaissance Oil Corp. ("Renaissance" or the "Company") (TSXV: ROE) (OTCQB: RNSFF) is pleased to announce it has now received final authorizations from the relevant Mexican authorities to proceed with the development program on the Company's three 100% held producing properties in the state of Chiapas (the "Chiapas Blocks"). This development program, designed to significantly enhance production along with the exploration of new formations, comprises:
- Major work-overs on three existing wells, one at Malva and two at Topn;
- Drilling up to four Cretaceous wells, two at Malva, one Mundo Nuevo and one at Topn; and
- Extensive coring in new zones of interest across the Chiapas Blocks.
Major work-overs are scheduled to commence in August 2018. The wells are tied into the existing pipeline infrastructure, allowing for immediate increases in production from the average of 1,643 boe/d for the month of May 2018.
The first of the four new wells is scheduled to spud in Q4, 2018. All three of the Chiapas Blocks have infrastructure in place with significant excess capacity to Pemex facilities, allowing for cost effective tie-ins and short cycle time to first production.
Pitepec Block Right of First Refusal
Renaissance recently signed a Right of First Refusal ("ROFR"), for the Pitepec block, adjacent to the north of the Amatitln block in the Tampico Misantla Basin. The Pitepec property, spanning over 248 km2 (61,300 acres), is currently producing 1,487 bbls/d of light oil from the shallow Chicontepec formation and, importantly, much like the Amatitln block, is in the main Upper Jurassic shale fairway. While the more shallow Chicontepec formation has been the predominant producing zone for the Pitepec block to date, Renaissance's log and core analysis from previous wells testing the unconventional Upper Jurassic shale formations indicate these deeper source rocks are high potential reservoirs for commercial development. The ROFR expires on May 31, 2019.
"As a result of our comprehensive analysis, the Pitepec block displays all of the attributes of a premier unconventional tight oil play", stated Dan Jarvie, Chief Geochemist of Renaissance. "The Upper Jurassic shales are organically rich with thermal maturity measurements indicative of greater than 40° API light oil. The high carbonate content (averaging over 50%) is indicative of a brittle rock fabric that readily fractures and releases retained oil."
Renaissance continues to make progress on its journey to become a major Mexican energy producer.
RENAISSANCE OIL CORP.
| Per: | |
| | Craig Steinke |
| | Chief Executive Officer |