VANCOUVER, Nov. 30, 2018 /CNW/ - Renaissance Oil Corp. ("Renaissance" or the "Company") (TSX-V:ROE / OTCQB: RNSFF) reports its third quarter 2018 results. All dollar figures are Canadian dollars, unless otherwise noted.
THIRD QUARTER 2018 HIGHLIGHTS
- Revenue and operating netback in the third quarter of 2018 reached Company records of $7.1 million and $0.8 million, respectively;
- On the 60,000 acre Amatitlán block, Renaissance, with its partner LUKOIL, completed a 17 shallow well drilling program targeting the Chicontepec tight sand formations and additionally, spud a 3,550 meter well to evaluate important deeper zones, and;
- Strong crude oil and natural gas prices continued into the third quarter as sales of crude oil averaged $84.27/bbl, compared to $80.68/bbl in the previous quarter and $54.09/bbl in the third quarter of 2017, while sales of natural gas averaged $5.03/Mcf compared to $4.51/Mcf in the previous quarter and $4.24/Mcf in the third quarter of 2017.
Three Months Ended
Sep 30, 2018
Jun 30, 2018
Sep 30, 2017
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Per share, basic & diluted
Operations during and subsequent to the third quarter of 2018 reached a milestone in the ongoing development of the Amatitlán block (Veracruz, Mexico) by Renaissance and LUKOIL. A 17 well drilling program has been completed, intersecting the shallow Tertiary Chicontepec formations. These wells have undergone completion operations and been brought onto production. Renaissance has also completed work-overs and repair operations on eight existing Chicontepec wells. Further, the Renaissance Lukoil partnership has now drilled and cored a deep 3,550 meter well which, with the 17 Chicontepec wells and work-overs, completes the US$45.5 million work program commitment on Amatitlán.
Renaissance produced an average of 1,548 boe/d at the Mundo Nuevo, Topén and Malva blocks (the "Chiapas Blocks"). Third quarter production on the Chiapas blocks was reduced from the previous quarter due to a temporary shut in of the Topén-3 well while the Company conducts a work-over on this well and negotiates land access for the upcoming new drilling and work-over operations.
Strong prices for crude oil and natural gas continued into the third quarter of 2018 resulting in a record high quarterly revenue of $7.1 million and record operating netbacks of $0.8 million.
Renaissance continues to make progress on its journey to become a major Mexican energy producer.
For further information, please visit our website at www.renaissanceoil.com.
RENAISSANCE OIL CORP.
Chief Executive Officer
This news release should be read in conjunction with the Company's financial statements for the three and nine months ended September 30, 2018 and related management's discussion and analysis. These filings are available for review on SEDAR at www.sedar.com.
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Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of Canadian securities legislation, including, without limitation, statements with respect to increase production, reduce field operating costs and increase operating netbacks, future prices received for crude oil and natural gas, the initiation of and success of the drilling program at Amatitlán and at the Chiapas Blocks and the Company becoming a major Mexican energy producer. Forward-looking statements are statements that are not historical facts which address events, results, outcomes or developments that the Company expects to occur; they are generally, but not always, identified by the words "targets", "expects", "plans", "anticipates", "believes", "intends", "estimate", "projects", "aims", "continue", "potential", "goal", "objective", "prospective", and similar expressions, or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Certain material assumptions regarding such forward-looking statements including risks and uncertainties are discussed in this news release and the Company's audited financial statements and management's discussion and analysis for the year ended December 31, 2017 as filed at www.sedar.com. Although the Company has attempted to take into account important factors that could cause actual results to differ materially from those anticipated, there may be other factors that cause the results of the Company's business not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Except as required by the securities disclosure laws and regulations applicable to the Company, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. The forward-looking statements included in this news release are expressly qualified in their entirety by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Renaissance Oil Corp.
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