VANCOUVER, April 28, 2020 /CNW/ - Renaissance Oil Corp.
("Renaissance" or the "Company") (TSX-V:ROE / OTCQB: RNSFF) reports
its fourth quarter and full year 2019 results. All dollar
figures are Canadian dollars, unless otherwise noted.
HIGHLIGHTS FOR THE YEAR ENDED 2019
- Revenue and operating netback in the fourth quarter of 2019
were $4.9 million and $0.6 million respectively, with production of
1,257 boe/d inline with previous quarters in 2019;
- Renaissance closed on an equity private placement for 10
million common shares of the Company at a price of $0.20 per share for gross proceeds to the Company
of $2.0 million;
- 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;
- 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; and
- Renaissance closed on a strategic investment with Energy
Mexican Services, LLC for gross proceeds of US$2.0 million to the Company at a price of
$0.20 per share.
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
Dec 31,
2019
|
Dec 31,
2018
|
|
2019
|
2018
|
|
Production
|
|
|
|
|
|
|
|
Crude oil
(bbl/d)
|
368
|
392
|
|
374
|
492
|
|
Natural gas
(mcf/d)
|
5,337
|
4,926
|
|
5,192
|
5,548
|
|
Total
(Boe/d)
|
|
1,257
|
1,213
|
|
1,239
|
1,417
|
|
|
|
|
|
|
|
|
|
Prices
|
|
|
|
|
|
|
|
Crude oil
($/bbl)
|
76.22
|
80.13
|
|
77.96
|
80.77
|
|
Natural gas
($/mcf)
|
4.80
|
6.28
|
|
4.68
|
5.19
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
4,908,131
|
5,854,526
|
|
19,514,049
|
25,019,241
|
|
Royalties
|
|
(3,853,731)
|
(5,145,102)
|
|
(15,364,238)
|
(20,436,687)
|
|
Operating
costs
|
(488,993)
|
(481,948)
|
|
(1,264,609)
|
(2,163,437)
|
|
Operating
netback
|
565,407
|
227,476
|
|
2,885,202
|
2,419,117
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
(925,078)
|
934,282
|
|
(2,928,176)
|
(904,995)
|
|
Per share, basic
& diluted
|
(0.00)
|
0.00
|
|
(0.01)
|
(0.00)
|
|
|
|
|
|
|
|
|
|
Funds flow from
operations1
|
(752,604)
|
(552,225)
|
|
(1,355,503)
|
(1,091,761)
|
|
Per share, basic
& diluted1
|
(0.00)
|
(0.00)
|
|
(0.00)
|
(0.00)
|
|
1 See
Non-GAAP Measures Section 13 of the MD&A
|
|
PRESIDENT'S MESSAGE
In the fourth quarter of 2019, Renaissance, and its partner
LUKOIL, continued to negotiate towards the development plan for the
Amatitlán block for the commercialization of all prospective zones,
with particular emphasis on the Upper Jurassic formations.
Specifically, management is progressing the migration of Amatitlán
from a service contract to a mutually beneficial contract structure
for all partners.
Renaissance produced an average of 1,239 boe/d at the
Mundo Nuevo and Malva blocks in
Chiapas during 2019 which has been
consistent with previous production levels while Topén-3 has been
shut in. In the fourth quarter of 2019, Renaissance's working
capital was significantly impacted by the halt in payments for the
sale of the Company's oil and natural gas production. Without
receiving these payments, the Company was unable to and has delayed
paying royalty payments due since September
2019. Failure to make the royalty payments may result in
penalties and could jeopardize the license agreements on the
Company's Chiapas properties.
Management continues discussions with funding sources in
Europe, North America and Mexico, however, there is no assurance further
financing efforts will be successful.
The global impact of the COVID-19 pandemic as well as recent
declines in spot prices for oil and gas have resulted in
significant declines in global stock markets and has fostered a
great deal of uncertainty as to the health of the global economy
over the near term. For the Amatitlán Contract, this has caused
delays in further negotiations to migrate the contract. As a result
of the Mexican government declaring Covid-19 a national epidemic
and the operational and logistical challenges this now creates,
Renaissance is pursuing various measures of relief provided by
Mexican oil and gas regulations, to required work programs.
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 audited annual financial statements for the year ended
December 31, 2019 and related
management's discussion and analysis. These filings are available
for review on SEDAR at www.sedar.com.
Abbreviations:
|
bbl or
bbls:
|
barrel or
barrels
|
mcf:
|
thousand cubic
feet
|
|
bbls/d:
|
barrels per
day
|
mcf/d:
|
thousand cubic feet
per day
|
|
boe:
|
barrels of oil
equivalent
|
mmcf:
|
million cubic
feet
|
|
boe/d:
|
barrels of oil
equivalent per day
|
mmcf/d:
|
million cubic feet
per day
|
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, 2019 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.