GROWING WITH MEXICO IN A NEW ERA OF ENERGY REFORM. TSX-V: ROE, ROE.WT

Transcription

1 GROWING WITH MEXICO IN A NEW ERA OF ENERGY REFORM, ROE.WT SEPTEMBER 2015

2 COMPANY HIGHLIGHTS RENAISSANCE WAS CREATED TO BE A LEADER IN MEXICO S ENERGY MARKET Renaissance was created as a Canadian publically listed company in July 2015 with the focused strategy of being a Pure Play oil and gas company in Mexico. Founders of Renaissance have a track record of success in growing resource companies including: Goldcorp Inc., Realm Energy International Corp. and Storm Cat Energy Corp. WORLD CLASS TECHNICAL TEAM Renaissance has assembled a world class technical team with in-depth experience in some of the most technically challenging reservoirs and shale plays globally. Renaissance s internal technical capabilities are complemented with the outstanding local expertise and competencies of our technical services partner Halliburton and dedicated consultants Marcos y Asociados in Mexico City. SIGNIFICANT ACCESS TO CAPITAL As a publically listed company in Canada, an influential shareholder base and vast fund raising experience, Renaissance has tremendous access to growth capital for project of any size. 2

3 KEY PERSONNEL RENAISSANCE OIL CORP. Ian Telfer, Lead Director Co-founder and a major shareholder of Renaissance Oil Corp. Chairman of the Board, Founder and Past President of Goldcorp Inc. Ernst & Young Entrepreneur of the Year, former Chair of the World Gold Counsel and has recently been inducted to the Canadian Mining Hall of Fame Craig Steinke, President and Chief Executive Officer Co-founder and a major shareholder of Renaissance Oil Corp. Former Chief Executive Officer of Realm Energy International Corporation Over 20 years of extensive experience in the global oil and gas industry Kevin Smith, ice President Business Development 20 years of experience in the financial services industry and oil and 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. Jeremy Crichton, Chief Financial Officer Extensive experience in senior financial capacities with natural resource companies. ice President of Fiore Management & Advisory Corp. Previously in the audit practice of Deloitte and Touche LLP. 3

4 INDUSTRY INNOATORS NOW TARGETING WORLD CLASS RESOURCE IN MEXICO Daniel Jarvie, Chief Geochemist World renowned, responsible for the geochemical analysis for Mitchell Energy in the development of the Barnett Shale, and former Chief Geochemist for EOG Resources Nick Steinsberger, Director of Engineering Completions manager for Mitchell Energy where he designed the "slick water frac" which gave rise to the success of the Barnett Shale. A variation of this well completion design is used in every shale completion in the world today. Dan Steward, Senior Geologist Leading member of Mitchell Energy s Barnett shale team, recognized by industry through awards; Explorer of the Year and Legends of Unconventional Wildcatters Kent Bowker, Senior Geologist Innovative technical analysis with Mitchell Energy, proving Barnett Shale held nearly 4x more gas than previously determined Jay Park, International Petroleum Legal Advisor Global petroleum regime expert, with significant experience in Mexico, developing innovative contracts and advising PEMEX Carol Law, Senior Geologist International explorationist in more than 40 countries, leading to major discoveries with Anadarko Petroleum and BP/Amoco Andrew Foulds, Senior Petrophysicist Former Senior Petrophysicist for ExxonMobil, evaluating formations in Africa, North & South America, Europe and Asia Stephen Cumella, Senior Geologist Established record of materially increasing production over various North American basins, in complex reservoirs Randall Miller, Geology and Completions Advisor ice President of Integrated Reservoir Solutions of Core Laboratories, a global leader in geology and petrophysics 4

5 TECHNICAL TEAM & ADISORS DANIEL JARIE, CHIEF 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, DIRECTOR OF ENGINEERING 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 5

6 TECHNICAL TEAM & ADISORS 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 6

7 TECHNICAL TEAM & ADISORS JAY PARK, INTERNATIONAL PETROLEUM LEGAL ADISOR 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 advising 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 CAROL A. LAW, SENIOR GEOLOGIST Over 30 years experience in the petroleum industry; leadership, strategic decision making, exploration geology, research, and consulting in a variety of geological settings worldwide Recent four years dedicated to leadership roles in early stage, high growth focused oil and gas companies Experience in exploration activities in more than 40 countries and has been a team member responsible for discoveries in Mozambique (Rovuma Gas), Ghana (Jubilee), Brazil (multiple Campos Basin discoveries), Alaska (Nikaitchuq), China (Bohai Bay), Gulf of Mexico and others 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 7

8 TECHNICAL TEAM & ADISORS ANDREW FOULDS, SENIOR PETROPHYSICIST Petrophysicist, with over 35 years international experience, in reservoir evaluation both in the service sector and within global oil companies Senior Petrophysicist for ExxonMobil, evaluating shale, carbonate and clastic formations globally including North Africa, East Africa, South America, Ukraine, Mediterranean, North Sea, UK, Indonesia, Canada, India and Poland Expertise in planning cost effective integrated petrophysical analysis programmes for all types of reservoirs, including unconventional resources, tight oil & gas, shale oil & gas, oil shale, and CBM, as well as difficult reservoirs such as low contrast plays, thin bed analysis and complex lithology/fluid reservoirs STEPHEN P. CUMELLA, SENIOR GEOLOGIST Extensive geological and geophysical experience with major producers and, most recently, with small entrepreneurial companies in North America, Latin America and Off-shore Africa Former Senior Geologist with Endeavour International, Bill Barrett Corporation / Barrett Resources and Exploration Geologist for Chevron / Chevron International 35 years of experience with established record of materially increasing production over various basins Directed all geological operations for Bill Barrett Corporation s Piceance Basin development program, production increased from 30 MMcf/d when the property was acquired in 2004 to 180 MMcf/d in 2010 Directed budget of several hundred million and all geological operations for Barrett Resources/Williams Production RMT in the Piceance Basin, increasing production of 100 MMcf/d in 2000 to 300 MMcf/d by 2004 Worked with team to develop geologic model for Lake Maracaibo Blocks I and III reservoir characterization projects, recommendations to PDSA resulted in over 40,000 BOPD increased production 8

9 TECHNICAL TEAM & ADISORS RANDALL L. MILLER, GEOLOGY AND COMPLETIONS ADISOR Over 35 years experience specializing in integrating geology, petrophysics, fracture stimulation and production analysis for optimizing the exploitation of unconventional reservoirs Division ice President of Integrated Reservoir Solutions of Core Laboratories, a World leader for providing proprietary and patented production enhancement and reservoir management services Globally renowned industry speaker, instructor and conducted and directed over 50 large joint industry projects 9

10 MEXICO OIL & GAS INDUSTRY REFORM - PROCESS THE PROBLEM 77 Years Pemex monopoly on oil and gas now ended Only 27,000 Wells drilled during Pemex monopoly -30% Mexico oil production decline from 2004 to current production levels Under-Explored and Under-Developed: Mexico represents a tremendous environment to grow a significant oil and gas company for many years THE OPPORTUNITY 2014 Launch of the Energy Reform opening the market to private capital 10 Rounds Expected over the next decade to auction properties to private operators 4+ Billion BOE Proven and Probable reserves now designated for auction (~17% of Mexico) 70% Prospective resources in Mexico now designated for auction 10

11 MEXICO OIL & GAS INDUSTRY PRIATIZATION 5 YEAR PLAN 4 rounds in next 5 years 914 blocks for auction 5 YEAR PLAN 603 onshore 107 Billion BOE remaining in place offshore + onshore 178,554 KM 2 ü Multi-zone Opportunities ü Undeveloped Shale Potential ü ast field reactivation and expansion opportunities Renaissance Areas of Interest Tampico-Misantla Basin Sureste Basin The Tampico Misantla basin holds over 50% of Mexico`s oil resources - with less than 1% recovery The Sureste Basin contains numerous mature fields that have received virtually no reinvestment 11

12 MEXICO OIL & GAS INDUSTRY PRIATIZATION CALL 3 CALL 3 MATURE FIELDS Block Removed From Auction 25 On-shore blocks offered with certified reserves and existing production ü Renaissance has registered as a participant for the Mature Field Auction ü Attractive License Style Contract ü No limits on Investment Return as per previous auction contracts in Mexico ü Bids are due December 15, 2015 Renaissance has conducted in-depth evaluation of the available blocks we have identified multiple attractive field redevelopment opportunities. 12

13 MEXICO: RARE OPPORTUNITY AND A NEW ERA MEXICO ENERGY REFORM Mexico holds some of the world s largest oil and gas resources - total estimated 391 billion barrels of oil equivalent 77 years of PEMEX monopoly, lack of capital reinvestment, slow adoption of modern drilling and completion technology has resulted in significant production declines. Mexico s resource base is vastly under drilled. During PEMEX s monopoly a mere 27,000 wells have been drilled; of which only 5,100 were exploratory wells: o Comparatively, over 150,000 wells were drilled in Western Canada in the last 10 years. Shale resources in Mexico are among the global top 6 in potential value. Mexico is undergoing sweeping reform to liberalize its oil and gas industry - starting now. Renaissances is well positioned to succeed in Mexico. Change from 2005 Oil Production Growth of Select Nations in the Americas Underexplored and underdeveloped, Mexico has experienced declining production. * Comision National de Hidrocarburos (CNH) report on original volumes in place and production, January 1,

14 MEXICO: UNDEELOPED S. REST OF NORTH AMERICA 14

15 GROWTH POTENTIAL OF SHALE DEELOPMENT SHALE GAS PRODUCTION GROWTH IN U.S. Shale drilling has become prolific in the US, However, up to 2013 Pemex had only drilled 18 shale wells, and Pemex has been very limited in its shale development since the start of the Energy Reform process. The opportunity for shale development in Mexico is tremendous and untapped 1,500 1, ,115 Top 10 Countries with Technically Recoverable Shale Gas Resources (TCF) China Argen6na Algeria U.S. Canada Mexico Australia South Africa Russia Brazil Source: US EIA

16 APPLICATION OF NEW TECHNOLOGY IN MEXICO PEMEX has only recently adopted modern techniques of horizontal drilling and/or multi-zone fracking completions Initial results of modern drilling and completion techniques has seen production rates as high as 10x higher than previous vertical drilling results H H H H H H H H H H RESULTS OF RECENTLY DRILLED WELLS Location Init`l Prod (Blpd) Prod Now* (Blpd) 90d Prod (Blpd) Total Prod (Blpd) Days on Prod Cost (Pesos $mm) NP IN ($ $) Payout (Months) Source: PEMEX - H=Horizontal well, = ertical well, RED = Halliburton completion 16 *Production at time of publishing of this table by PEMEX

17 RENAISSANCE & HALLIBURTON: A STRONG RELATIONSHIP SOLING CHALLENGES. TM Renaissance management initiated the relationship with Halliburton at previous company, Realm Energy, through a collaboration in assembling key shale plays in ten European basins. With more than 80,000 employees and major R&D technology centers around the world, Halliburton engineers and scientists have been innovators in the development of shale and tight reservoirs. Halliburton Mexico's annual revenues were over US $1 Billion in 2012 and largest single country by revenue outside of the US. TECHNICAL SERICES AGREEMENT Halliburton s unique and extensive understanding of the oil and gas systems in Mexico has allowed Renaissance to accelerate our understanding of opportunities available and established a solid foundation of multi-basin evaluations In collaboration with our dedicated team within Haliburton, Renaissance has invested to date over USD$1.5 million and 3600 hours evaluating oil and gas prospects in Mexico and is dedicated to solving complex resource opportunities. Halliburton has given Renaissance a tremendous head start in evaluating opportunities 17

18 MARCOS Y ASOCIADOS LOCAL EXPERTISE Renaissance has exclusively retained Marcos y Asociados, the only Mexican financial and business development consultant specializing in the Mexican energy industry ERNESTO MARCOS Former Chief Financial Officer of PEMEX Former President of Nacional Financiera, Mexico's development Bank Former Undersecretary for the Secretary of Energy Former Adjunct Governor of the World Bank, the International Financial Corporation LUIS LABARDINI Former senior advisor to the CFO of PEMEX, Former deputy director for Trade Financing, Mexican Ministry of Finance Former Deputy Director for Foreign Investment, Mexican Ministry of Finance M.A. from Yale University, and an M.S. in management from MIT ANTONIO PRINCE 25 Years with Schlumberger working internationally in sixteen countries Expertise in business development, bidding, negotiation and contract management Excellent reputation and extensive contacts within the Mexican oil and gas industry Chemical engineer with 28 years of experience in the global oil and gas industry The outstanding expertise and sterling reputation of Marcos y Asociados gives Renaissance a significant advantage in executing our business plan in Mexico 18

19 SNAPSHOT SHARE STRUCTURE ROE - TSX-: $0.10 (September 28, 2015) Basic Shares Outstanding: 47.2 million Basic Market Capitalization: $4.7 million Options (avg. Strike $0.28): 3.9 million LISTED WARRANTS ROE.WT - TSX- Warrants Outstanding: 19.2 million Strike price $0.50 per share, Expiry July 2019 CASH Cash Balance of $3.3 million (June 30, 2015) INSIDER OWNERSHIP 58% (Fully diluted including listed warrants and options) 19

20 LOWER OIL PRICES EFFECTS TO RENAISSANCE The current environment of lower oil prices has been positive for the development of Renaissance s business plan the opening of a world class oil jurisdiction is a once in a generation opportunity to have it happen in a low commodity price environment makes it a once in a lifetime opportunity. Lower expected bids = Opportunity for upside in recovered energy prices PEMEX s lower revenues increases need for partners Many talented executives & technical staff available Most Juniors and Mid-Tier oil companies are preoccupied or are on reduced budgets Mexico Gov t was disappointed in first auction and has favorably revised terms Mexico has progressive linear royalty system < $48 /bbl = 7.5% $100 /bbl = 14% 20