GROWING WITH MEXICO IN A NEW ERA OF ENERGY REFORM

Transcription

1 GROWING WITH MEXICO IN A NEW ERA OF ENERGY REFORM November 2016

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. Forwardlooking 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 obligations; 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. 2

3 Why Mexico? 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 3

4 Why Now? 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 Most juniors and mid-tier oil companies are preoccupied Mexico Government has favorably revised terms 4

5 Renaissance Story 2014 Pure Play on Mexican Energy Privatization Initial Public Offering completed in Canada Engaged Halliburton, evaluation & development plan advisor 2015 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 2016 Established operations team in Villahermosa, Mexico Awarded 4 th 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 5

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 of 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 operations 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.

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 2 nd 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)

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 opportunities through work-overs and horizontal drilling 12 drilling locations identified 25 year licence contracts executed with two possible 5 year extensions 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 * 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 Standards of Disclosure for Oil and Gas Activities ("NI "). 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.

9 Mundo Nuevo Multiple work-over opportunities and new drilling locations identified to significantly increase current production levels Discovered in 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

10 Topén Work-over candidates and infill development drilling opportunities, potential major untested reserves in the south Discovered in wells drilled Produces 27 API oil and natural gas Peak production of over 1,500 bbls/d of 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

11 Malva Infill development well opportunities with and work-overs to existing wells, 2 potential untested new areas Discovered in wells drilled on the license Produces 39 API oil and natural gas Peak production of over 2,000 bbls/d of 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 M-401 M-201 M-83 M-85 * 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

12 Pontón Top San Andres Structural Map New development drilling locations identified 12km² (2,965 acres) in Veracruz, Mexico Discovered in 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 * 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

13 Significantly Under-Developed Relative to the rest of North America ü Extensive undeveloped opportunities 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 opportunities 13

14 Mexico s 5 Year Plan 900+ blocks are designated for auction 600+ located onshore 107 Billion BOE remaining in place offshore + onshore* 178,554 KM 2 (44 million acres) ü Multi-Zone Opportunities ü Undeveloped Shale Potential ü Vast Field Reactivation and Expansion Opportunities Renaissance Areas of Interest Tampico-Misantla Basin Sureste Basin Ø Ø Tampico Misantla Basin holds over 50% of Mexico`s oil resources - with less than 1% recovery to date Sureste Basin contains numerous mature fields that have received virtually no reinvestment * Source: Comisión Nacional de Hidrocarburos 14

15 Key Personnel 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 15

16 Key Personnel 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. 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 16

17 Technical Team DANIEL JARVIE, GEOCHEMIST 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 NICK STEINSBERGER, DRILLING AND COMPLETIONS ENGINEER 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 17

18 Technical Team 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 KENT BOWKER, SENIOR GEOLOGIST 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

19 Technical Team JAY PARK, INTERNATIONAL PETROLEUM LEGAL ADVISOR 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 over 40 other countries 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 opportunities 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 of Engineering, at the University of Mexico, since 1996 PhD in Petroleum Engineering from the University of Oklahoma

20 Share Structure SHARE STRUCTURE WARRANTS (TSX-V) ROE - TSX-V: $0.17 (October 21, 2016) Basic Shares Outstanding: 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: million Strike price: $0.20/share, expiry Oct FD SHARES million CASH BALANCE $5.5 million (June 30, 2016 ) 20

21 For further information, please contact: Renaissance Oil Corp. Suite 3123, 595 Burrard Street, Three Bentall Centre Vancouver, BC V7X 1J1 Canada Tel: Fax: