Renaissance Oil Corp. and PJSC Lukoil will partner for work on the Amatitlan Block in east-central Mexico, according to a Jan. 11 press release.

The companies have an integrated E&P contract for the 56,800-acre block that could hold 59 billion barrels of oil equivalent (Bboe) of certified oil in place.

The Amatitlan Block is in the Tertiary-aged Chicontepec Formation—known as the Aceite Terciario del Golfo in Mexico--near Poza Rica, Veracruz, Mexico.

Dan Jarvie, chief geochemist at Renaissance, said the Upper Jurassic shale interval—the Chicontepec Formation’s major carbonate source rock—has not been commercially developed.

Discovered in 1962 and still largely undeveloped, the main field Amatitlan has produced more than 175 Mbbl of light oil, with peak production of 650 bbl/d in 2005.  Mexico’s Comision Nacional de Hidrocarburos said that Chicontepec could contain only 4.2 Bbbl of crude and 3.33 trillion cubic feet of natural gas originally in place. 

Through the agreement with Lukoil and Marak Capital SA, Renaissance will acquire an indirect 25% interest from Marak in Petrolera de Amatitlan SAPI, which is the contractor of the contract, for $1.75 million.

Marak currently owns a 50% indirect interest in Petrolera, with the remaining 50% held by Lukoil.

Renaissance will take the lead role in operations.

Renaissance expects the transaction to close in late January.