Strategic Objectives (Prospectus Excerpt)

Core to DeXentra’s OilXCoin strategy is that the token serves as the principal conduit for economic returns generated by the company’s assets and operations. Unlike traditional equity investments, holders of OilXCoins will have claim against the issuer relating to the company’s assets. The proceeds from ongoing operations will be channelled into supporting the value of OilXCoin.

In this context, it is the primary strategic goal to continually and sustainably increase the value of the token through the continued acquisition and management of oil and gas leases as well as the regulatory, technical and market-fit product development of the OilXCoin as a crypto security.

The value proposition of the OilXCoin is based on three components:

  • Gas-In-Place (GIP) and Oil-In-Place (OIP) reserves which are designed to provide a very robust line of defence against potential falling token prices and, through the continual reinvestment strategy in both more production infrastructure and further reserves, a continually increasing base value line.

  • The sale of oil and gas extracted from GIP and OIP reserves to service providers further down their supply chains, as well as DeXentra's potential involvement in these supply chain by the possible provision of other products and services in addition to extraction and commodities sales.

  • Dynamic treasury and reserve management enabled by native transaction fees, which will provide a stream of OilXCoins that the issuer will be able to sell to raise capital and finance the acquisition of oil-and-gas-related assets and investments.

The combination of these three components defines a key differentiating factor compared to other existing financial instruments, such as shares in oil & gas companies (who do not have the crypto aspect of the native transaction fee and access to the crypto investment community) through to stable coins pegged to commodities (which do not encompass the value chain component).

In this context, OilXCoin is strategically positioned to appeal to the crypto investment community, in particular those who are looking for alternatives to many of the current offerings, as OilXCoin is a token with real-world asset (RWA) backing.

Simultaneously, with its oil & gas asset foundation, OilXCoin also speaks to more traditional investors who are looking for an entry point into crypto, whilst maintaining the confidence building aspect of a security token.

The building of trust and creditability, fostering of engagement, driving adoption and advocacy and expansion are the step-by-step aspects that OilXCoin is pursuing to promote the success of the token.

This security is in principle offered to the public throughout the EEA and Switzerland. Initially, the following main target markets are intended: Austria, Belgium, Cyprus, Czech Republic, Denmark, France, Germany, Hungary, Ireland, Italy, Liechtenstein, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Spain and Sweden. Further notifications within the EEA may be submitted at a later date. Thereafter, DeXentra intends to initiate the same process with the United States Securities and Exchange Commission (SEC) with the intention to gain a similar approval. In parallel and subsequentially, DeXentra will consider whether to strategically pursue approvals in jurisdictions with a high number of crypto investors and/or a significant portion of the population having a neutral to positive disposition towards the oil & gas industry.

OilXCoin tokens will not be offered in Australia, Canada, China, Hong Kong SAR, Japan or any other jurisdiction where it would be prohibited by law.

Due to the dynamically evolving global regulatory landscape, DeXentra will actively realign this rollout strategy based on significant developments in this space.

From an asset perspective, OilXCoin’s strategy is to focus solely on the commodities of oil & gas and their respective upstream value chains. Here the intent is to expand the DeXentra's oil & gas portfolio by judiciously acquiring underdeveloped, primarily conventional, oil and gas leases which can be more thoroughly developed and optimized over time. Underdeveloped assets include those with infill drilling opportunities in already delineated pay horizons, fields with bypassed pay behind pipe and reservoirs in which EOR technologies can create significant upside potential. This low risk, proactive approach is central to OilXCoin’s focus on enhancing oil recovery across a diverse range of geographical locations. Simultaneously, by focusing on using existing wells.

The respective leases for these reservoirs should sit in the strategic corset defined by the fact that conventional production methods are to be pursued (e.g. as opposed to unconventional methods such as fracking) and that the leases are located in jurisdictions with a conducive environment for oil & gas activities, a robust legal system and, where possible, locally based refineries and downstream buyers to reduce the CO2 footprint.

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