Issue link: http://resourceworld.uberflip.com/i/937377
F E B R U A R Y / M A R C H 2 0 1 8 www.resourceworld.com 89 changing waters has been critical to moving forward our business plan," he said. "We have had success in this task of learning how to do business in Mexico, which is now giving us an advantage going forward." With a strong partner in Lukoil, which boasts more than 100,000 employees glob- ally, production over 2 million barrels of oil per day and 2015 revenues topping US $90 billion, Renaissance will follow a multi- zone extraction strategy that includes, in addition to the Upper Jurassic shale play, development of significant certified reserves in the shallower Chicontepec for- mation with resources originally in place of 4.2 billion barrels of crude oil and 3.3 trillion cubic feet of natural gas. The company just started workovers of existing wells and is now drilling new wells in Amatitlán in the shallower Chicontepec formations to bring the block back onto production. "The goal is to drill a deeper test of the UJS with a horizontal leg in H1 2018 that will provide the proof of concept and unlock the tremendous value we see in the Amatitlán block," Smith said. The process isn't without difficulties as the nation adjusts to moving away from the Pemex monopoly. But Renaissance has taken steps to ensure public opinion rolls in its favour, especially in regard to envi- ronmental concerns about pipelines and fracking. All their current production is delivered through existing pipelines for sale to Pemex, who then decide if they will use the oil for export or within their refinery system in Mexico. In Amatitlán, the initial production is being trucked to Pemex facilities but as production increases, as is expected, a pipeline infra- structure will be developed. As for the fracking that raises the ire of environmentalists elsewhere in the world, Smith said Pemex has been using it for many years so it's not new, and with the new national energy reform, regulations have been bolstered with comprehensive new guidelines. "We have had no problems or protests with transportation to date," said Smith. "We have had extensive community con- sultations and discussions with local landowners to gain access for operations. This is a crucial component to doing busi- ness at a local level in Mexico and an area we place great importance on." To that end, Renaissance is focused on bringing best practices in this area from its technical team, which has extensive expe- rience globally. They're determined to do it right. "We believe that Mexico is a unique opportunity: A major global oil produc- ing nation that has been underdeveloped, underexplored and undercapitalized under an eight-decade monopoly," said Smith. "Mexico has a massive resource, strong rule of law, stable democracy and an infrastruc- ture for a new liberalized energy industry. "Renaissance has been aggressive establishing itself as a leader in this new industry and believes it is an excellent environment for a growth-focused junior for the next many years." n CONVENTION.CIM.ORG ARE yOu REAdy TO THINK dIFFERENTLy? Be prepared for an InnoVaTIVe approaCH To MInInG reGIsTer TodaY Talk To us #CIMBC18 ➔ ➔ ➔