Operations

Amatitlán

In January 2017,  PJSC LUKOIL, one of the world’s largest oil producers, chose Renaissance as their partner for the Integrated Exploration and Production Contract for the Amatitlán block in Mexico. In coordination with LUKOIL, Renaissance has taken the lead role in operations for joint development of the Amatitlán block currently held by Pemex-Exploración y Producción (“Pemex”). The minimum US$50 million appraisal work program has been completed for the Integrated Exploration and Production Contract at Amatitlán. The completion of this program is expected to facilitate the existing contract to migrate to a new contract structure with enhanced economics for all parties.

Renaissance was awarded its top three choices in December 2015 in Mexico’s historic first auction of oil and gas properties in 80 years:

The blocks are all in close proximity to each other in the State of Chiapas, which will allow operational efficiencies.

Chiapas Blocks

Mundo Nuevo

The Mundo Nuevo block is located 42km southwest of the city of Villahermosa, Tabasco with an areal extent of 27.7 km² (6,845 acres). The Mundo Nuevo field, a middle Cretaceous fractured carbonate reservoir, was discovered in 1977. This field was developed by PEMEX, Mexico’s state owned oil and gas company, through the drilling of 14 wells, reaching peak production of over 15,000 barrels per day (bbls/day) of natural gas liquids, in the early 1980s. This field’s average production for Q1 2020 was approximately 183 bbls/d of light oil and 4.1 MMcf/d of natural gas with an average reservoir depth of 3,580 meters.

With the advantage of 3D seismic data, acquired since the original wells were drilled, Renaissance has identified numerous potential new development well locations. In order to satisfy the minimum work commitment for Mundo Nuevo, the Company is required to drill one development well.

Topén

The Topén block is located 45km southwest of the city of Villahermosa, Tabasco with an areal extent of 25.3km² (6,251 acres). The Topén field, an upper Cretaceous fractured carbonate reservoir, was discovered in 1978. PEMEX developed this field through the drilling of five wells, reaching peak production of over 1,500 barrels bbls/day of medium crude oil, in the mid 1980s. This field’s average production for 2017 was approximately 200 bbls/d of medium oil and 0.9 MMcf/d of natural gas with an average reservoir depth of 3,300 meters. In September 2018 the field’s production was suspended in preparation of the field development activities.

The Topén field is delineated with 3D seismic data acquired since the original wells were drilled. Renaissance has identified numerous new development well locations and potential for significant field extensions as well as a previously untested area, supported by seismic amplitude analysis.

In order to satisfy the minimum work commitment for Topén, the Company is required to drill one development well.

Malva

The Malva block is located 61km southwest of the city of Villahermosa, Tabasco with an areal extent of 21.2km² (5,239 acres) The Malva field, an upper Cretaceous limestone reservoir, was discovered in 2003. PEMEX developed this field through the drilling of four wells, reaching peak production of over 2,000 barrels bbls/day of light crude oil, in the late 2000s. This field’s average production for Q1 2020 was approximately 177 bbls/d of light oil and 1.1 MMcf/d, with an average reservoir depth of 2,680 meters. The Malva field is delineated with 3D seismic data.

Renaissance used high tech seismic technology and advanced structural interpretation to identify a number of untested potential hydrocarbon amplitudes, new well locations and field optimization opportunities in the existing producing area. In order to satisfy the minimum work commitment for Malva, the Company is required to drill two wells.

For these blocks, Renaissance sees significant opportunity for additional value creation in new well locations as well as application of innovative re-completion technologies.

Renaissance won the three Chiapas blocks by very small differentials of less than 2.5% above each of the second place bid values. Well-attended auction processes saw over 40 companies vying to be the first onshore operators in Mexico’s historic privatization of the energy sector.

In August 2016, Renaissance acquire the license for the Pontón block from the December 2015 “mature fields” auction to become the fourth license held by the Company.

Pontón

The Pontón block is located 25km southeast of Panuco city, Veracruz, with an areal extent of 12km2 (2,965 acres). The Pontón field was discovered and put into production in 1971 in the Upper Jurassic San Andres formation. In May 1991, production was commenced in the Lower Cretaceous Tamaulipas Inferior formation. PEMEX developed this field through the drilling of 14 wells in the 1970s. The Upper Jurassic San Andres formation has an average reservoir depth of 1,266 meters and the Lower Cretaceous Tamaulipas Inferior formation has an average reservoir depth of 925 meters.