ROE Renaissance Oil Corp

VANCOUVER, May 30, 2019 /CNW/ - Renaissance Oil Corp. ("Renaissance" or the "Company") (TSX-V:ROE / OTCQB: RNSFF) reports its first quarter 2019 results.  All dollar figures are Canadian dollars, unless otherwise noted.

HIGHLIGHTS FOR THE FIRST QUARTER 2019

• Revenue and operating netback in the first quarter of 2019 was $4.8 million and $0.7 million respectively;
• Renaissance received a 20-month extension to December 27, 2020, from the Comisión Nacional de Hidrocarburos ("CNH") to complete the work programs on the Company's 100% held producing properties in the state of Chiapas.;
• Evaluation of the cores acquired from the Upper Jurassic formations at Amatitlán confirms the presence of the critical characteristics of a commercial play; and
• Renaissance has entered into an agreement for the transfer of its non-core Ponton license to a Mexico based oil and gas company for consideration of US$1,000,000, upon closing, plus a gross overriding royalty of 10% on future oil and gas revenue from Ponton, for maximum aggregate royalties of US$3,000,000.

PRESIDENT'S MESSAGE

In the first quarter of 2019, Renaissance, and its partner LUKOIL, continued to negotiate a development plan on the Amatitlán block for the commercialization of all prospective zones, with particular emphasis on the Upper Jurassic formations. Negotiations include the migration of the Amatitlán CIEP into a contract of exploration and extraction, pursuant to the constitutional amendments of December 20, 2013 reforming the Mexican Energy Industry.

Renaissance produced an average of 1,209 boe/d at the Mundo Nuevo and Malva blocks in Chiapas during the first quarter of 2019.  First quarter production from in the Chiapas blocks was reduced due to a temporary shut-in of the Topén-3 well while the Company prepares for the upcoming drilling and work-over activities and negotiates further land access requirements for this work program.  

Sale of Ponton Block

As the Ponton property is no longer a strategic asset, Renaissance has entered into an agreement for the transfer of this license to a Mexico based oil and gas company for consideration of US$1,000,000, upon closing, plus a gross overriding royalty of 10% (a "GORR") on future oil and gas revenue from Ponton, for maximum aggregate royalties of US$3,000,000.  Renaissance has received a cash deposit of US$250,000 towards the closing amount of the Transaction.

"As a result of winning all three of the Company's targeted producing oil and gas blocks in the state of Chiapas, in Round 1.3, and entering into a partnership with PEMEX and LUKOIL to develop the 60,000 acre Amatitlán block, developing the Ponton property has become less of a strategic priority," stated Craig Steinke, Chief Executive Officer of Renaissance.  "The transfer of this property to a competent third-party operator will be the fastest path for Ponton's field development and with the GORR in place, Renaissance will participate in the upside of any future development success."

Interest Payment

Renaissance announces that pursuant to the convertible debentures issued on March 6, 2019 (the "Convertible Debentures"), the Company has elected to issue common shares of the Company (the "Common Shares") in satisfaction of the aggregate accrued interest owing on such Convertible Debentures. Under the terms of the Convertible Debentures, interest has accrued at a rate of 10% per annum resulting in a total amount owing of $119,178 as at May 31, 2019. The Company will satisfy the aggregate accrued interest owing by issuing 847,036 Common Shares having a deemed price of approximately $0.14 per share. The price per share was determined using the 30-day volume weighted average price of the Common Shares on the TSX Venture Exchange (the "TSXV") ending on May 30, 2019.

Debt Conversion

The Company also announces that it intends to settle outstanding indebtedness in the amount of $292,500 (the "Debt") by the issuance of 1,950,000 Common Shares having a deemed price of $0.15 per share. The Debt includes amounts due to Renaissance's Head of Governmental Affairs in Mexico.

The Common Shares to be issued to satisfy the Debt and in satisfaction of the aggregate accrued interest owing on the Convertible Debentures will be subject to a four month hold period and are subject to the acceptance of the TSXV.

After giving effect to issuance of Common Shares in satisfaction of the Debt and the aggregate accrued interest owing on the Convertible Debentures, the Company will have an aggregate of 282,778,511 Common Shares issued and outstanding.

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.

Per:

Craig Steinke
Chief Executive Officer

This news release should be read in conjunction with the Company's financial statements for the three months ended March 31, 2019 and related management's discussion and analysis. These filings are available for review on SEDAR at www.sedar.com.

Abbreviations:

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, 2018 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.