GROWING WITH MEXICO IN A NEW ERA OF ENERGY REFORM November 2016 - - PowerPoint PPT Presentation

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GROWING WITH MEXICO IN A NEW ERA OF ENERGY REFORM November 2016 - - PowerPoint PPT Presentation

GROWING WITH MEXICO IN A NEW ERA OF ENERGY REFORM November 2016 Forward Looking Statements Certain information in this Presentation may constitute "forward looking" information or "forward-looking" statements within the


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SLIDE 1

GROWING WITH MEXICO

IN A NEW ERA OF ENERGY REFORM

November 2016

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SLIDE 2

Forward Looking Statements

Certain information in this Presentation may constitute "forward‐looking" information or "forward-looking" statements within the meaning of Canadian securities legislation, including, but not limited to, statements with respect to Renaissance Oil Corp. (“Renaissance” or the “Company”) becoming a major operator in Mexico with the three blocks awarded to the Company forming a solid foundation to grow the Company. Forward-looking statements are statements that are not historical facts; 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. Consequently, there can be no assurances that such statements will prove to be accurate and 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. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include, but are not limited to, the

failure to receive regulatory approval for the issuance of the shares, the risks associated with the bidding process and satisfaction of any prequalifying criteria, and such other risks as disclosed in the Company’s management discussion and analysis and other continuous disclosure filings. Although the forward‐looking information and statements contained in this Presentation are based upon what management of Renaissance believes are reasonable assumptions, Renaissance cannot assure readers that actual results will be consistent with the forward‐looking information and statements. In particular, this Presentation contains forward‐looking information and statements pertaining to the following: the treatment of Renaissance under the regulatory regimes and laws of the jurisdictions in which Renaissance conducts its business; drilling and completion of wells; operating and capital costs and the timing and method of funding thereof; timing of development of undeveloped reserves; Renaissance's future oil and natural gas production levels; the future performance and characteristics of Renaissance's oil and natural gas properties; the estimated size of Renaissance's potential oil and natural gas reserves; projections of market prices and costs; supply and demand for oil and natural gas; expectations regarding the ability to raise capital and to continually add to reserves through acquisitions, exploration and development activities; future capital expenditure programs and the timing and method of financing thereof. With respect to forward‐looking information contained in this Presentation, Renaissance has made assumptions regarding, among other things: future prices for oil and natural gas; future currency and interest rates; Renaissance's ability to generate sufficient cash flow from operations; access to debt and/or equity financing to meet its operating costs and future

  • bligations; and Renaissance's ability to obtain qualified staff and equipment in a timely and cost-efficient manner to meet Renaissance's demand.

The actual results could differ materially from those anticipated in these forward‐looking statements and information as a result of the risk factors set forth below and elsewhere in this Presentation: volatility in market prices for oil and natural gas; the potential for the return of conditions persisting during the recent global crisis and economic downturn; liabilities inherent in oil and gas operations; uncertainties associated with estimating oil and natural gas reserves; competition for, among other things, capital, acquisitions, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; geological, technical, drilling and processing problems; fluctuations in foreign exchange or interest rates and stock market volatility; changes in the laws or application thereof by the Governments of the jurisdictions in which Renaissance conducts its business; business plans and strategies; capital expenditure programs and the timing and method of financing thereof; the ability of Renaissance to achieve drilling success consistent with management's expectations; net present values of future net revenues from reserves; future production levels of Renaissance's assets; timing of bringing on production; expected plans and costs of drilling; drilling inventory and presence of oil pools or gas accumulations; supply and demand for oil and natural gas; ability and costs of increasing plant capacity; expected levels of royalty rates, operating costs, general and administrative costs, costs of services and other costs and expenses; and expectations regarding the ability to raise capital and to continually add to reserves through acquisitions, exploration and development. The forward‑looking information contained in this Presentation is expressly qualified by this cautionary statement.

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SLIDE 3

Why Mexico?

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… rare opportunity and a new era…

ü Mexico holds some of the world’s largest oil and gas resources ü 78 years of PEMEX monopoly now ended:

  • Lack of capital reinvestment and slow adoption of modern drilling &

completion technology has led to an underdeveloped resource

ü Mexico is undergoing sweeping reform to liberalize its oil & gas industry:

  • Considerable acquisition and growth opportunities

ü Renaissance is the second largest oil and gas producer in Mexico,

after PEMEX

  • Renaissance was awarded the most number of blocks (4) of any

participant in the Mexico Reform auction process to date

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SLIDE 4

Why Now?

4

Most juniors and mid-tier oil companies are preoccupied

… the opening of a world class hydrocarbon provenance in a low oil price environment is an exceptional opportunity…

PEMEX’s lower revenues increases need for partners Talented executives & highly technical staff available Mexico Government has favorably revised terms

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SLIDE 5

Renaissance Story

5

2014

  • Pure Play on Mexican Energy Privatization
  • Initial Public Offering completed in Canada
  • Engaged Halliburton, evaluation & development plan advisor
  • Established key industry and government connections
  • Hired strong technical team with specific focus of world

leaders in unconventional resource development

  • Awarded 3 top oil fields from onshore block auction

2015 2016

  • Established operations team in Villahermosa, Mexico
  • Awarded 4th oil field and executed license contracts for all

concessions

  • Completed transition from Pemex and now full operator of

producing fields – over 1,700 barrels of oil equivalent/day

  • Appointed as head of unconventional resource sub

committee of AMEXHI

  • Submitted appraisal and development plans for 2017

multiple new well drilling

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SLIDE 6

NEWS RELEASE, JUNE 20, 2016

RENAISSANCE ANNOUNCES FIRST REVENUE FROM OIL AND GAS OPERATIONS, BECOMING SECOND LARGEST PETROLEUM PRODUCER IN MEXICO

June 20, 2016 – Vancouver, BC – Renaissance Oil Corp. (“Renaissance” or the “Company”) (TSX-V: ROE) is pleased to announce the Company has received payment for its first sale of crude oil, condensate and natural gas to the Mexican state oil company, Petróleos Mexicanos (“PEMEX”). The combined hydrocarbon production, from the Company’s three properties in Mexico, was approximately 1,700 barrels

  • f oil equivalent per day. As a result, Renaissance is the second largest petroleum producer in Mexico

after PEMEX. Since the May 10, 2016 signing of the 25 year license contracts for the Mundo Nuevo, Topén and Malva blocks in Chiapas, Mexico, Renaissance has entered into a 90-day transition period whereby PEMEX is transferring operations of the properties to the Company. During this period, the Company has been receiving detailed production reports, including daily estimates of production and crude oil and natural gas

  • compositions. Production for these properties, over the period of May 10-31, 2016, was reported at

approximately 708 bbls/d of crude oil and 5.9 MMcf/d of natural gas. Renaissance received an average price of US$39.59 per bbl for its crude oil and condensate production and US$2.77 per Mcf of natural gas. After deductions for operating costs and royalties, Renaissance is generating positive operating cash flow from its Mexico properties. “Renaissance is pleased with the quality of detailed information received and competent, low cost

  • perations of our properties,” stated Craig Steinke, Chief Executive Officer. ''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 continues to make progress on its journey to become a major Mexican energy producer.

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SLIDE 7

Auction Results

Round 1 - Call 3 “Mature Field” Auction, Dec. 15, 2015

ü Renaissance awarded and

contracted its top 3 targeted blocks

ü Renaissance’s winning bids

within 2.5% of 2nd place for each block

ü Renaissance's awarded blocks

represent 46% of Original Oil in Place available for Type 1 blocks in the auction

(Type 1: <100 million Bbls oil in place)

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SLIDE 8

4 Licensed Blocks

Mundo Nuevo, Topén & Malva

  • Renaissance operates three producing fields

in the State of Chiapas

  • Currently, approximately 1,700 boe/d

production 100% contracted to Renaissance

  • 140 million bbls original oil in place*
  • 46 million bbls recovered to date
  • Significant additional production growth
  • pportunities through work-overs and

horizontal drilling

§

12 drilling locations identified

§

25 year licence contracts executed with two possible 5 year extensions

* Volume estimates were publically disclosed by the Mexican government as part of the auction and were not prepared by a qualified reserves evaluator in accordance with the Canadian Oil and Gas Evaluation Handbook ("COGEH") or National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Renaissance will have a third party evaluation conducted on each block this year by a qualified reserves evaluator and will provide the results publically when available.

Pontón

  • In August 2016, Renaissance acquired its fourth license and first block in the Tampico-

Misantla Basin – Expected to be put back into production through field redevelopment

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SLIDE 9

Mundo Nuevo

  • Multiple work-over opportunities

and new drilling locations identified to significantly increase current production levels

  • Discovered in 1977 - 14 wells

drilled

  • Produces 46° API light oil and

natural gas

  • Peak production of over 15,000

bbls/d of oil and over 100 mmcf/d natural gas in early 1980s

  • May – July 2016 avg. production:

§ 230 bbls/d oil § 2.7 MMcf/d natural gas

  • 86 million bbls original oil in place*
  • 35 million bbls oil recovered
  • 3D seismic coverage across the

block

* Volume estimates were publically disclosed by the Mexican government and were not prepared by a qualified reserves evaluator in accordance with the COGEH or NI 51-101.

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SLIDE 10

Topén

  • Work-over candidates and infill

development drilling opportunities, potential major untested reserves in the south

  • Discovered in 1978 - 5 wells drilled
  • Produces 27° API oil and natural gas
  • Peak production of over 1,500 bbls/d
  • f oil and 3 mmcf/d natural gas in mid

1980s

  • May – July 2016 avg. production:

§ 270 bbls/d oil § 0.5 MMcf/d natural gas

  • 40 million bbls original oil in place*
  • 8 million bbls oil recovered
  • 3D seismic coverage across the block

* Volume estimates were publically disclosed by the Mexican government and were not prepared by a qualified reserves evaluator in accordance with the COGEH or NI 51-101.

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SLIDE 11

Malva

  • Infill development well opportunities

with and work-overs to existing wells, 2 potential untested new areas

  • Discovered in 2003 – 4 wells drilled
  • n the license
  • Produces 39° API oil and natural gas
  • Peak production of over 2,000 bbls/d
  • f oil and 15 mmcf/d natural gas in

late 2000s

  • May – July 2016 avg. production:

§ 280 bbls/d oil § 2.6 MMcf/d natural gas

  • 13 million barrels original oil in place*
  • 3 million barrels oil recovered
  • 3D seismic coverage across the block

* Volume estimates were publically disclosed by the Mexican government and were not prepared by a qualified reserves evaluator in accordance with the COGEH or NI 51-101.

M-201 M-401 M-83 M-85

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SLIDE 12

Pontón

  • New development drilling locations

identified

  • 12km² (2,965 acres) in Veracruz, Mexico
  • Discovered in 1971 – 14 wells drilled on

the license

  • Historical production of approximately

800,000 barrels of light oil (34° API)

  • 7.4 million barrels original oil in place*
  • Seven lines of 2D seismic across block
  • Renaissance executed the License

Contract in August 2016

Top San Andres Structural Map

* Volume estimates were publically disclosed by the Mexican government and were not prepared by a qualified reserves evaluator in accordance with the COGEH or NI 51-101.

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SLIDE 13

Significantly Under-Developed

Relative to the rest of North America

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ü Extensive undeveloped

  • pportunities in Mexico

create an ideal environment for the growth of a significant oil and gas company

ü Renaissance was the

first independent oil field producer/operator in Mexico, with production starting May 2016

ü Successful bidding in

December licensing round has significantly increased access to further business development

  • pportunities
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SLIDE 14

14

Tampico-Misantla Basin Sureste Basin

Renaissance Areas of Interest ü Multi-Zone

Opportunities

ü Undeveloped Shale

Potential

ü Vast Field

Reactivation and Expansion Opportunities

Ø

Tampico Misantla Basin holds over 50% of Mexico`s oil resources - with less than 1% recovery to date

Ø

Sureste Basin contains numerous mature fields that have received virtually no reinvestment

  • 900+ blocks are

designated for auction § 600+ located

  • nshore
  • 107 Billion BOE

remaining in place

  • ffshore +
  • nshore*
  • 178,554 KM2 (44

million acres)

* Source: Comisión Nacional de Hidrocarburos

Mexico’s 5 Year Plan

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SLIDE 15

Key Personnel

15 IAN TELFER, LEAD DIRECTOR

  • Co-founder and major shareholder of Renaissance Oil. Corp.
  • Chairman of the Board, Founder & Past President of Goldcorp. Inc.
  • Ernst & Young “Entrepreneur of the Year”, former Chair of the World Gold Counsel and

recently inducted to the Canadian Mining Hall of Fame

CRAIG STEINKE, PRESIDENT & CHIEF EXECUTIVE OFFICER

  • Co-founder and major shareholder of Renaissance Oil Corp.
  • Co-founder and former Chief Executive Officer of Realm Energy International

Corporation

  • Over 20 years of extensive experience in the global oil & gas industry

CAROL LAW, CHIEF OPERATING OFFICER

  • Over 30 years global experience in the petroleum industry; leadership, strategic decision

making, exploration geology, research & consulting

  • Former roles include Exploration Manager East Africa and Caribbean for Anadarko

Petroleum Corporation and a number of senior exploration positions with Kerr McGee and BP/Amoco

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SLIDE 16

Key Personnel

16 LUIS MIGUEL LABARDINI, COUNTRY MANAGER

  • Former Senior Advisor to the CFO of PEMEX
  • Former Deputy Director for Trade Financing and Deputy Director for Foreign Investment
  • Founder and ongoing director of several oilfield service companies, including Seamar

Mexico and SEICO

  • Pioneered introduction of modular platform drilling rigs into Mexican shallow waters

WILLEM VELTMAN, OPERATIONS MANAGER

  • 26 years experience in oil & gas exploration and development in Mexico, with associations

and negotiations with Pemex, and managing growth of several oil & gas fields

  • Served as Petrofac Mexico’s Asset Director, in charge of USD $1.4 billion/3 yr E&P

contract

  • Oversaw startup and served as GM of GPA Energy, organizing group’s 2006 bid for

Pemex tender of the USD $433 million Monclova gas field development contract

KEVIN SMITH, VICE PRESIDENT, BUSINESS DEVELOPMENT

  • 20 years experience in the financial services industry and oil & gas investment banking,

raising capital for junior energy companies

  • Professional roles with Paradigm Capital, Macquarie Capital Markets Canada Ltd.,

HSBC Securities (Canada) Inc., and Nesbitt Burns Inc.

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SLIDE 17

Technical Team

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  • Globally recognized as a leading analytical and interpretive organic geochemist, having evaluated

conventional and unconventional petroleum systems around the World

  • Former Chief Geochemist of EOG Resources, Inc., largest shale oil producer in North America
  • Most notably, completed the independent geochemical analysis for Mitchell Energy, in their

development of the Barnett Shale of the Fort Worth Basin, in Texas

  • Mr. Jarvie has been the author of many award winning industry papers and in 2010, Mr. Jarvie was

awarded “Hart Energy’s Most Influential People for the Petroleum Industry in the Next Decade”

  • Adjunct professor at Texas Christian University (TCU) and a member of the Energy Institute and

Affiliate professor at the University of Oklahoma

  • Bachelor of Science from the University of Notre Dame and mentored in geochemistry by Wallace

Dow and Don Baker of Rice University

DANIEL JARVIE, GEOCHEMIST

  • 22 years experience in petroleum engineering, drilling, production, and surface facilities
  • Completions Manager for Mitchell Energy and responsible for drilling of first 25 wells in the

Barnett Shale, Nick was Integral to the growth of the company until its sale to Devon Energy for $3.1 Billion

  • First to recommend and implement slick water fracs in the Barnett Shale, transforming it from a

marginal play to one of the largest gas fields in the USA reaching peak production of 5.75 Billion Cubic Feet per day in 2012

  • As horizontal team leader for Devon Energy, he designed the first horizontal completions in shales

that are now used industry wide

  • Completed over 900 wells in the Barnett Shale and 300+ in other petroleum plays across North

America

  • Bachelor of Science, Petroleum Engineering, registered Professional Petroleum Engineer, Texas

NICK STEINSBERGER, DRILLING AND COMPLETIONS ENGINEER

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SLIDE 18
  • With over 35 years experience in the oil & gas industry Kent is widely recognized as a global industry

expert in the geology and engineering of unconventional oil & gas reservoirs

  • In 1998, while with Chevron Kent was recruited by Mitchell Energy management to join Barnett Shale

Team, where he ultimately played an integral role in the successful development of the resource play and Mitchell Energy

  • His technical analysis directly led to the realization that the Barnett Shale held nearly four times more

gas than previously determined, ultimately increasing Mitchell’s proven reserves from 500 Billion Cubic Feet to 2.5 Trillion Cubic Feet of natural gas between 1999 & 2002

  • Since 2002 sale of Mitchell Energy, Kent has had continued success in discovering hydrocarbons in

several more U.S. sedimentary basins, and is further engaged in evaluating petroleum systems globally

KENT BOWKER, SENIOR GEOLOGIST DAN STEWARD, SENIOR GEOLOGIST

  • With 48 years experience in the petroleum industry, has spent over 20 years evaluating the Barnett

Shale and widely considered an expert in conventional and unconventional reservoir evaluation

  • Leading member of Mitchell Energy’s Barnett Shale team and important contributor to the success of

the shale play, as well as the $3.1 billion sale of the Company to Devon in 2002

  • Thereafter, applied his in-depth understanding of source rocks to evaluating resource plays within the

U.S., such as the Marcellus & Mount Pleasant shales, as well as Canada, South America, China & the U.K

  • Selected by the American Association of Petroleum Geologists (AAPG) for their “2007 Explorer of the

Year” award for role in establishing the Barnett as one of the largest producing gas fields in the United States and the model for shale resource plays worldwide

  • In 2012, honoured as one of the “Legends of Unconventional Wildcatters” by the Houston Geological

Society, and received the ”Monroe G. Cheney Science Award” for his work in the Barnett Shale (AAPG) in 2013

Technical Team

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SLIDE 19
  • 27 years of legal advisory experience and widely considered a leading authority on global petroleum regimes
  • Managing Partner at Park Energy Law providing legal expertise on a wide array of global energy projects
  • Managing Partner at Petroleum Regimes Advisory
  • Past Partner and Chair of the Global Resources Practice Group with Norton Rose Canada.
  • Extensive experience in Mexico, having previously advised PEMEX on the development of innovative

services contracts

  • Specialty includes oil & gas asset acquisitions & divestments, share acquisitions & divestments, advising on

production sharing agreements, concession agreements, product marketing, gas sales & purchase contracts, pipeline transportation matters, oil and gas pipeline asset dispositions and drafting legislation in

  • ver 40 other countries

JAY PARK, INTERNATIONAL PETROLEUM LEGAL ADVISOR

Technical Team

SERGIO BERUMEN, TECHNICAL ADVISOR – SENIOR RESERVOIR ENGINEER

  • Senior Reservoir engineer with over 30 years experience, having evaluated several Mexican oil and gas

clastic and fractured carbonate reservoirs.

  • Former roles include Technology Manager for Pemex E&P, Geosciences Manager and Technical Advisor

for Diavaz, as well as a number of senior reservoir engineering positions with Pemex E&P and IMP

  • Extended experience in integrated reservoir engineering studies and geomechanical projects focused on

design and execution of hydraulic fracturing and microseismic technology field tests

  • Specialty includes developing planning, integration of portfolio of oilfield locations, evaluation of investment
  • pportunities in oil and gas fields, technology strategy in oil field development, oil and gas well testing

design and interpretation.

  • Authored numerous industry technical papers
  • Associated Professor of Advanced Geomechanics and Advanced Well Stimulation at the Graduate School
  • f Engineering, at the University of Mexico, since 1996
  • PhD in Petroleum Engineering from the University of Oklahoma
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SLIDE 20

Share Structure

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  • ROE - TSX-V:

$0.17 (October 21, 2016)

  • Basic Shares Outstanding: 159.8 million
  • Basic Market Capitalization: $27.2 million
  • Options (avg. strike $0.27):

16 million TRANCHE 1: ROE.WT

  • Outstanding:

19.2 million

  • Strike price:

$0.50/share, expiry July 2019 TRANCHE 2: ROE.WT.A

  • Outstanding:

106.9 million

  • Strike price:

$0.20/share, expiry Oct. 2020

  • $5.5 million (June 30, 2016 )
  • 300.8 million

SHARE STRUCTURE WARRANTS

(TSX-V)

FD SHARES CASH BALANCE

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SLIDE 21

For further information, please contact: Renaissance Oil Corp. Suite 3123, 595 Burrard Street, Three Bentall Centre Vancouver, BC V7X 1J1 Canada Tel: +1.604.536.3637 Fax: +1.604.536.3621 Email: admin@renaissanceoil.com