Proof of GIP and OIP & Auditing

The concept of proof of backed assets, proof of solvency, and enhanced transparency has been gaining traction across the digital asset industry.

Each circulating OilXCoin embodies the value derived from consistent reinvestments, both from the oil and gas and the crypto business model.

As OilXCoin is built on a blockchain, the accounting and provability of tokens at any given point in time is guaranteed. Simultaneously, the corresponding total amount of OIP/GIP held in reserves is proven by regularly conducting independent audits and publishing the audit reports.

A widely recognized petroleum engineering method is utilized for these audits which leverages the Recovery Factor (RF) and the cumulative production history of every lease. Where required, further validation is undertaken via a volumetric analysis.

A crucial aspect of auditing in the natural gas and oil sector is monitoring extraction rates. Here OilXCoin can strategically curtail aggressive extraction to react to market demand. This ensures the longevity and value retention of the reservoir contents.

In summary DeXentra will make available to investors:

• An annual third-party audit that confirms the existence and accuracy of all individual oil-in-place and gas-in-place audits (performed by certified oil and gas auditors prior to the acquisition or lease of the reserve) and further confirms the correctness of the consolidated numbers (e.g. amount of resource available and how much thereof is recoverable) derived from the sum of these individual audits.

• At least twice a year: data on the amount of resources that have been extracted or recovered from DeXentra´s reserves.