Renaissance Oil Corp. recently took payment for its first sale of crude oil, condensate and natural gas to Mexican state oil company Petroleos Mexicanos (Pemex) for production from three recently acquired onshore blocks.
Combined production from the company's three properties in Mexico was about 1,700 boe/d, making Renaissance the second-largest petroleum producer in Mexico after Pemex, the company said Monday.
Following the May 10 signing of 25-year license contracts for the Mundo Nuevo, Topen and Malva blocks in Chiapas, Pemex is in the process of transferring operations of the properties to Renaissance. During the 90-day transition period, Renaissance said it "has been receiving detailed production reports, including daily estimates of production and crude oil and natural gas compositions."
Production from the properties over the May 10-31 period was reported at about 708 b/d of crude oil and 5.9 MMcf/d of natural gas. Renaissance received an average price of US$39.59/bbl for its crude oil and condensate production and US$2.77/Mcf of natural gas. After deductions for operating costs and royalties, Renaissance is generating positive operating cash flow from its Mexico properties, the Vancouver, BC-based company said.
The blocks were awarded in Mexico's December 2015 "mature fields" auction. Renaissance said last May that it had been designing an appraisal plan for each of the three blocks for submission to the Comision Nacional de Hidrocarburos (CNH). Plan approvals are expected during the fourth quarter, after which Renaissance will have one year to complete the minimum work programs. Renaissance said it expects the majority of the development activities of the minimum work programs will be conducted in 2017.
Renaissance also said in May that it had received notice from CNH of eligibility to acquire the license for the Ponton Block from the December 2015 mature fields auction. Ponton is about 2,965 acres and, although not currently in commercial production, has produced about 800,000 bbl of light oil to date, according to Renaissance. The company was given about four months to exercise the option to acquire the Ponton block.
"Renaissance is pleased with the quality of detailed information received and competent, low-cost operations of our properties," CEO Craig Steinke said this week. ''As Renaissance transitions into the properties as operator, our focus is to optimize field efficiencies and to increase the production and cash flow from these properties."
Renaissance is also active in Spain, where it has been the successful bidder on about 1.3 million acres prospective for shale natural gas and oil development. According to its website, Renaissance is awaiting the final award of acreage.