Permian Holding SPV Ltd., a company that is utilising the blockchain and digital assets to significantly enhance the hydrocarbon alternative investment landscape, has announced that the first round of its private placement, which launched in mid-March, will close by end of April. The private placement will enable early subscribers to secure their rights to the Permian Token (XPR); a Shari’ah compliant digital asset which represents investments in Permian Holding’s oil production campaigns.
For many years, a combination of high barriers to entry, a complex web of broking fees and convoluted back-office processes have made the process of investing in proven oil and gas reserves prohibitively expensive for most investors. The Permian Token will remove much of this complexity, making it simpler to invest earlier in the development of an oil and gas campaign. It is expected that this transparent, efficient approach will attract significant fresh liquidity to the sector.
Permian Holding is working with Canada-based PermianChain Technologies, Inc. to establish a tradable digital-asset on a permission-access trust-protocol (private blockchain). PermianChain’s blockchain technology for hydrocarbon sector will create the opportunity to invest in proven oil and gas campaigns, helping exploration and production companies raise capital while creating a new, transparent and fully tradable digital asset-class for investors.
“There is a great deal of focus on efficiency in the oil and gas sector at the moment, and firms need to prove to investors not only that their projects have access to energy reserves, but also that they are committed to clearly defined, transparent key performance indicators” observes Mohamed El-Masri, Director at Permian Holding and Co-Founder and CEO at PermianChain Technologies. “The Permian Token not only helps strip away many of the administrative and brokerage fees that investors and energy firms currently have to pay, it also creates the opportunity to put a tradable value of the 1.6 trillion barrels of proven oil reserves globally. With so much focus on efficiency and making sure that every dollar works hard for a project, the Permian Token is the start of a financial breakthrough for the industry.”
The first round of private placement will continue until April 2019, offering accredited investors and professional clients the opportunity to benefit from underlying oil production campaigns and secure their rights for Permian Tokens.
Permian Holding is also working closely with strategic partner Gulf Energy Corporation, which brings a wealth of expertise to the project, as well as access to several conventional and unconventional hydrocarbon projects. “Our intention is to support the development of more conventional oil and gas fields, to help sustain growth and stability.” observes Chris Tate, Director and Development Manager at Gulf Energy Corporation. “Working with Permian Holding, we will aim to significantly reduce costs and ensure that projects are managed efficiently to maximise potential investor returns.”
Permian Holding is also working closely with King & Spalding, a global legal specialist, to establish the company’s security token exchange and have the Permian Token issued as a regulated digital asset.
About Permian Token (XPR)
Permian Token (XPR) is a Shari’ah compliant digital-asset that represents rights to the equity of proven oil campaigns in which Permian Holding invests. XPR enables the underlying value of oil and gas campaigns to be digitally traded. We expect XPR will become a critical instrument for preservation of wealth and an ever-expanding range of upstream investment activities using blockchain technology. XPR uses the letter ‘X’ as a “X marks the spot” of Proven Reserves meanwhile taking in consideration the standard ISO 4217 code for non-country currencies; and the letters ‘PR’ which stand for Proven Reserves, hence the Permian Token (XPR).
About PermianChain Technologies
PermianChain Technologies Inc. is a FinTech start-up based in Toronto, Canada with presence in the United Arab Emirates through its joint venture with Permian Holding SPV Ltd., a limited company based in the Abu Dhabi Global Market (ADGM). PermianChain signifies the recognition of the Permian Era, by harnessing blockchain technology to capitalize on the world’s fossil fuels by turning exploration and production campaigns into investable digital-assets. The PermianChain team is made up of ethical and competent professionals with expertise and backgrounds in Oil & Gas, Finance, Law, Investment Banking, IT & ICT, Blockchain, Data Science and Marketing.
Gulf Energy Corporation Limited
Gulf Energy Corporation (GEC) is focused on using the latest technology in drilling, completions and reservoir management to improve oil and gas recovery and increase asset value. The company works with investors who meet its stringent suitability requirements, forming joint ventures that help develop and manage oil and natural gas fields. Proceeds from the sale of any of our joint ventures are invested principally in prospective projects located in United States. GEC is a founding partner and strategic investor in the Permian Holding to support the development of the PermianChain. GEC is responsible for deal sourcing, due diligence and assets qualification.