Renaissance Oil resumes production at Amatitlán block, Mexico

Renaissance Oil, along with its partner Lukoil, has restarted production at the Amatitlán block in Veracruz, Mexico, after going ahead with the field evaluation programme.

Production at the block was previously affected owing to lack of drilling and development activities.

Out of a planned six well workover programme, the company completed the third workover with the fractured recompletion of a lower zone in the Chicontepec formation in a previously non-producing well.

Renaissance Oil CEO Craig Steinke said: “In keeping with the committed work programme, Renaissance and Lukoil are efficiently re-establishing production on Amatitlán through light and heavy workovers and are rig ready to commence drilling the shallower Chicontepec and deeper Upper Jurassic Shales.”

According to the company, the gross production from the three workovers stands at around 110 barrels a day (bblsd) of 38° API light oil.

The three workovers were carried out at a gross estimated cost of C$650,000 ($509,719).

The workover rig has currently been redeployed to the fourth location and the company expects to complete the operation by the middle of this month.

Having received all necessary certifications, the drilling rig crews and equipment are expected to be moved to the first drilling location in the coming weeks, conditional on finalising drilling permits.

Renaissance has also signed a private placement with certain members of its technical team for four million units to raise gross proceeds of C$1m ($0.784m).

The proceeds from the placement will be used to fund the development of properties in Mexico, as well as towards general corporate purposes.

The Amatitlan block is said to have 4.2 billion barrels of oil and 3.33 trillion cubic feet of natural gas originally in place.