Canadian-based Renaissance Oil has signed a contract for the development of the Pontón block in Veracruz, Mexico.
Pontón is about 12km² and now the fourth Mexican-based property will be operated by Renaissance.
The block cumulatively produced about 800,000 barrels of light oil.
Renaissance plans to re-establish part of the contract and grow production on the block, which includes the complete stratigraphic column and was awarded to the company with an additional royalty of only 21.39%.
This allows the company to reach its objective of reducing the average royalty rate of its portfolio properties in Mexico.
The company has also individually assumed complete operatorship of 100% held Mundo Nuevo, Topén and Malva blocks in Chiapas, Mexico.
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By GlobalDataRenaissance has signed a sale and purchase agreement with Petróleos Mexicanos (Pemex) for the oil and natural gas production from these blocks.
During last month, aggregate production from the blocks averaged at approximately 1,700 barrels of oil equivalent per day, of which about 45% consists of crude oil.
The company has now opened its field operations office in Villahermosa, Tabasco, adjacent to the Chiapas Blocks.
Preparations are also underway for field development and drilling of new wells. These operations are slated to begin in the first quarter of next year.
