Private Companies Challenged By Mexico Policies

Private Companies Challenged By Mexico Policies

  • By Jim Bentein
  • Monday, January 13, 2020, 1:40 PM MST


Since socialist-leaning Andres Manuel Lopez Obrador (AMLO) was elected Mexican president in 2018, it’s been challenging for privately-owned companies like Vancouver-based Renaissance Oil Corp. to operate in the country.

AMLO has reserved policies under former market-friendly President Enrique Pena Nieto, who had sold off Pemex assets to companies from juniors like ROC to super majors like Exxon Mobil Corporation, and had encouraged private sector partnerships with Pemex.

Last week AMLO reiterated his pro-Pemex stance, announcing that his government is not planning to reopen oil and gas auctions this year, ending hopes his government might spur private sector investment in the energy sector.

But despite the heavy debt load Pemex carries, AMLO’s government continues to be determined to renew its past glories, when it produced about three million bbls daily, mostly from shallow offshore finds.

This has made it difficult for companies like ROC, which entered the country in 2014, subsequently gaining ownership of three former Pemex properties in the southern state of Chiapas and forming a partnership with Lukoil to win rights to develop the 243-square kilometre Amatitlan block in central Mexico.

The company planned a 10-well program, initially targeting Chicontepec sands with the potential to produce thousands of bbls/d of oil, mostly using unconventional production methods.

But the real prize on the property is the Upper Jurassic shales under the entire block where the company sees the potential for several “elephants.”

However, the only way to develop those assets is through fracking, which AMLO is opposed to amidst a growing anti-fracking movement in Mexico.

Kevin Smith, ROC spokesperson, said the company believes it still has a promising future in Mexico, despite the policy reversal of the AMLO government.

“The home run opportunity is still in the Amatitlan block, but we think we can still be a substantial producers from our Chiapas blocks,” he said.

The company is continuing its negotiations with Pemex involving ownership stake and production approaches.

The political difficulties in Mexico aside, ROC, which is not yet profitable, has been able to raise millions from wealthy investors. Last March, for example, it announced it had raised $5 million from selling shares at 25 cents each to a wealthy Mexican family.

However, despite the lack of enthusiasm for the company’s shares from retail investors, it has been able to attract interest from well-heeled investors. Recently it had issued 6.57 million common shares, at 20 cents each, to an unidentified investor, raising $1 million, who was revealed to be Pierre Lassonde, chairman of Canadian-based mining and oil and gas giant Franco Nevada Corp.

Meanwhile ROC is concentrating on its Chiapas properties.

“We still think there’s a large role for us in Mexico,” he said.

The company is producing about 1,260 boe/d from the three Chiapas blocks — Mundo Nuevo, Topen and Malva — and has plans for an aggressive drilling program this year.

“We have plans to drill four wells and do three workovers on the blocks this year,” he said. “We think we can increase production by five times.”

Renaissance Oil Cleared For Development On Chiapas Blocks and Acquires Right Of First Refusal On Shale Lands

On behalf of the Board of Directors, RENAISSANCE CLEARED FOR DEVELOPMENT ON CHIAPAS BLOCKS AND ACQUIRES RIGHT OF FIRST REFUSAL ON SHALE LANDS July 9, 2018 – Vancouver, BC – Renaissance Oil Corp. (“Renaissance” or the “Company”) (TSX-V: ROE) (OTCQB: RNSFF) is pleased to announce it has now received final authorizations from the relevant Mexican authorities to proceed with the development program on the Company’s three 100% held producing properties in the state of Chiapas (the “Chiapas Blocks”).  This development program, designed to significantly enhance production along with the exploration of new formations, comprises: 1) Major work-overs on three existing wells, one at Malva and two at Topén; 2) Drilling up to four Cretaceous wells, two at Malva, one Mundo Nuevo and one at Topén; and 3) Extensive coring in new zones of interest across the Chiapas Blocks. Major work-overs are scheduled to commence in August 2018.  The wells are tied into the existing … Continue reading

First Canadian Operated Oil Well Drilled in Mexico – TSXV:ROE




November 27, 2017
Renaissance Oil initiates multi-well drilling program at Amatitlán

Canada NewsWire

VANCOUVERNov. 27, 2017 /CNW/ – Renaissance Oil Corp. (“Renaissance” or the “Company“) (TSX-V: ROE) is pleased to announce the Comisión Nacional de Hidrocarburos (the “CNH”) has approved drilling permits for the Chicontepec multi well drilling program on the Amatitlán block in Veracruz, Mexico.  In conjunction with its partner Lukoil, Renaissance will conduct the following operations:

  • During the week of December 4th, 2017, mobilize Simmons Edeco Rig 836 to a multi-well drilling location and spud the first well, Amatitlán 1649, of the 10 well drilling campaign which will occur over the course of several months;
  • Each well will be directionally drilled, targeting multiple Chicontepec intervals, to a total depth of 1,975 meters; and
  • The second well in the program, Amatitlán 1708, will be drilled subsequently from the same multi-well location.

“As the first Canadian operated oil well drilled in Mexico, in almost a century, the Amatitlán 1649 is a historical milestone”, stated Craig Steinke, Chief Executive Officer of Renaissance.  He added, “Rig 836, owned by Canadian based Simmons Edeco, will also be used to drill the planned 4,200 meter measured depth horizontal Upper Jurassic shale well.”

Renaissance continues to make progress on its journey to become a major Mexican energy producer.



Craig Steinke
Chief Executive Officer

Cautionary Note Regarding Forward-Looking Statements
This news release contains certain “forward-looking statements” within the meaning of Canadian securities legislation, including, without limitation, statements with respect to the acceptance of the Offering by the TSX Venture Exchange and the anticipated use of proceeds from the Offering. Forward-looking statements are statements that are not historical facts which address events, results, outcomes or developments that the Company expects to occur; 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. Certain material assumptions regarding such forward-looking statements are discussed in this news release and the Company’s annual and quarterly management’s discussion and analysis filed at 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.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Renaissance Oil Corp.


View original content:


Catching Up On A Sunday …Are You A Contrarian?

November 12, 2017
By Dudley Pierce Baker

Catching Up On A Sunday …Are You A Contrarian?

First I would like to share with you the news, that our sister company, Junior Mining News, just hit 5,000 followers on Twitter. A giant milestone for sure. Help us to keep growing by joining us on and at JrMiningNews.

As gold continues to languish below $1300 we remain optimistic on the upside potential of the resource sector.

Do not allow these times to put you to sleep.

There are many great opportunities which I see everyday and always wished I had more monies to invest. All investors and newsletter writers have this same problem, we can not buy everything or recommend everything.

Many of the positions that personally own, I would like to double up or triple up at these current prices. Some of these can be called ‘project generators’.  Project generators, own the properties but joint venture with other resource companies to perform the drilling and spending of monies. This greatly reduces the risk for these ‘project generators’ and in the next couple of years I see these companies being 10 baggers. But you need to own them or be buying them now.

If you decide to wait and buy high, you have just given up on the possibility of achieving 10 bagger potential.

 in order to make money in the resource sector and I know it is difficult to buy into some of these low priced shares, but do you homework, look at charts and always evaluate the insider positions.

I would never buy any shares in any company without knowing what the insiders are doing.

In my services, I provide a link to the current insider activity to assist my subscribers in making good decisions. For those Gold and Lifetime Subscribers which have access to my personal portfolio they will also get my comments in my weekly Thursday audio.

For me, there is only one way to play this ‘game’ by investing in quality junior mining companies and/or long-term stock warrants trading on those companies.

If you are not familiar with stock warrants, you can receive The Stock Warrant Handbook for FREE by visiting, along with more freebies.

However, many investors are finding great opportunities with warrants on the U.S. stocks in other sectors, biotechs, pharmaceuticals, banking, blank check companies, etc.

Remember that only 25% or so of my personal portfolio is in stock warrants, the balance are common shares in the junior mining companies and I am on the hunt for new additions to my portfolio.

There are many interesting opportunities in stocks as well as the stock warrants available today, so if you not a current  subscriber, LET’S GET YOU STARTED NOW.

The next several years, 2017 – 2020 will see some exciting times in the PM sector and I am looking to make a fortune. Do you want to follow me? Let’s have some fun and make money together.

Recent Articles On Our Websites:

Dudley Pierce Baker