July 9, 2018 - 3:01 AM EDT
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Renaissance cleared for development on Chiapas Blocks and acquires right of first refusal on shale lands

Canada NewsWire

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:

  1. Major work-overs on three existing wells, one at Malva and two at Topén;
  2. Drilling up to four Cretaceous wells, two at Malva, one Mundo Nuevo and one at Topén; and
  3. 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 Amatitlán 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 Amatitlán 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

Abbreviations:

bbl or bbls

barrel or barrels

Mcf

thousand cubic feet

bbls/d

barrels per day

Mcf/d

thousand cubic feet per day

boe

barrel of oil equivalent

MMcf

million cubic feet

Mboe

thousand barrels of oil equivalent

MMcf/d

million cubic feet per day

boe/d

barrels of oil equivalent per day

Bcf

billion cubic feet

 

Cautionary Note Regarding Forward-Looking Statements
This news release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, including, without limitation, statements with respect to future filed development activities, scheduled spud of development wells, increases in production at the Chiapas Blocks, and Renaissance continues to make progress on its journey to become 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 "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "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 are discussed in this news release and the Company's annual and quarterly management's discussion and analysis filed at www.sedar.com. 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.

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.

View original content: http://www.newswire.ca/en/releases/archive/July2018/09/c5120.html

Craig Steinke, Chief Executive Officer, Tel: 1.604-536-3637; Kevin J. Smith, Vice President, Business Development, Tel: 1.403-200-9047Copyright CNW Group 2018


Source: Canada Newswire (July 9, 2018 - 3:01 AM EDT)

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