Renaissance Oil Corp. RNSFF

Chiapas Update

[Boots333]

 

This drilling program is on hold at present,according to management. One of the landholders  in the Chiapas blocks asked that one of the drilling pads be moved to a new location. This happens all of the time in places like Western Canada and it is a simple process of just simply refiling the location. In Mexico the authorities told ROE they would have to start a whole new application process which would have involved over a thousand pages of documentation and a myriad of approvals, about a 100, that would take several months. ROE management had a short and blunt discussion with the authorities and got the pad location changed. The pad is being built in the new location. The drill program is still scheduled to start in the first half of this year. 

 

Management indicated that there where no concerns with running out of time to get the drilling done. Apparently there are about 70% of the companies that were awarded blocks in the various bidding rounds that have been unable to obtain any approvals to start drilling. All of them are running up against the original time limit. It is a mess. So the Government authorities are basically giving a blanket extension for all of the blocks, so there is no danger of losing the Chiapas blocks. ROE has been told their blocks are all being extended. This is part of the reason for the organization of petroleum companies that has been formed and the meetings that ROE management will be attending over the next few days.