Permian Holding SPV, 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