Rich Glory Coin
A Security Debt Tokenization
StormHarbour is a
client-focused investment banking
partnership,
founded on the bases
of Integrity, Trust and Global
Expertise
Since 2010, StormHarbour’s Asian franchise has been focusing in private placement financing solutions, providing expertise in pricing and structuring with extensive distribution capabilities in Greater China, Japan, Korea, Australia and SE Asia, covering a wide spectrum of investors.
As an independent, client relationship driven business, we are transparent at every level of our business, from communication to pricing. We have experienced and knowledgeable teams completely focused on our clients’ needs.
Key Strengths
Seven offices worldwide, covering thousands of institutional counterparties, across all major global liquidity pools
160 hands-on industry and product veterans who have held leadership positions at some of the world’s largest financial institutions
Trusted advisor to clients ranging from project & development sponsors to Fortune 500 corporations
Balance sheet light, conflict-free business model that places our clients’ interests first
Actively pursue complex advisory and financing assignments that leverage our global platform
Customized analysis combined with real-time market insights drives our recommendations
Notable Transaction
USD 115 Million
Debt Restructuring Advisory
Sole Arranger & Joint Book Runner
Undisclosed Private Placement
Exclusive Placement Agent
Colombia
Sale of LUKOIL Overseas Colombia
Exclusive Financial Advisor
United States
USD 50 Million
Private Equity Placement
Co-Lead Placement Agent
Global Office Location
* StormHarbour is the brand under which the member firms of StormHarbour operate and provide financial advisory services. StormHarbour Hong Kong, together these firms, located in New York, London, Lisbon, Tokyo and Dubai form the StormHarbour network.
Business Structure
A Security Debt Tokenization
To fund operations necessary to expand the Dagang Oil Field in the Kongnan Block to increase the oil production capacity and for other general corporate purposes.
Rich Glory Coin, a tokenised secured debt, with size up to a maximum of USD25 million (through single or multiple tranches) due on the third anniversary; bearing an interest of 4.5% per annum, payable semi-annually, plus an additional upside return calculated based on 10% of the positive percentage difference between the 90-day VWAP Brent Price on Maturity Date over the 90-day VWAP Brent Price on First Closing Date. Payable at Maturity. Furthermore, this secured debt will be subject to a put option exercisable by holders thereof before the first anniversary of closing.
Winner of TADS Awards 2021 – Best of Class TADS, Rising Stars Award
Successful applicant of Hong Kong The Financial Services and the Treasury Bureau (FSTB) – Fintech Proof-of-Concept Subsidy Scheme
Lead Consultant & Global Coordinator
Project Facilitator
Background of Pan-China Resources Ltd
- In 1997, Pan-China Resources Ltd (PCR) entered into a production sharing contract with one of the largest oil companies in the world with a maximum term of 30 years, expiring in 2027.
- PCR was designated as the contractor and operator to develop the Dagang Kongnan Block area.
- Kongnan Block is in southern part of Bohai Bay Basin and is approximately 100 km south of Tianjin metropolis.
- The product sharing contract is currently covering 3 areas and the Kongnan Block currently includes three sub block areas, which are Xixiepo (15.5 km2), Xiaoji (1.04 km2) and Duannan (14.75 km2) with a combined total area of 31.29 km2.
- With the steady production, Kongnan Block is less risky than oil fields in exploration stage. Hence with investments, growth of production is expected.
Oil Reserves Summary
- Summary of PCR’s Oil Reserves in Kongnan Block as at December 31, 2021:
| Oil Reserves | Proven | Proven + Probable | Proven + Probable + Possible |
|---|---|---|---|
| Gross Oil Reserves (MMBbl) | 3.07 | 4.74 | 6.30 |
| PCR’s Net Entitlement (MMBbl) | 2.21 | 3.27 | 4.13 |
Production Summary
- Since commencement of trial production in September 1999 and up to December 31, 2021, cumulative oil production for Kongnan Block is 11.41 MMbbl. The depth of reservoirs are between 2,300 meters and 3,600 meters.
- During December 2021, 57 wells in Kongnan Block were producing oil and 3 wells were injecting water.
- For the 12 months in 2021, the cumulative oil production for Kongnan is 485,177 bbls.
| 2018 | 2019 | 2020 | 2021 | |
|---|---|---|---|---|
| Gross Field Production (BOPD) | 1,414 | 1,626 | 1,293 | 1,329 |
| PCR’s Net Entitlement (BOPD)1 | 953 | 1,315 | 798 | 1,058 |
UNIWE UNIWE has estimated the Market Value of PCR's oil assets is around
US$45.3 million based on 2P reserve as at Dec 31, 2021.
Oil Sales
|
|
2017 |
2018 |
2019 |
2020 |
2021 |
|---|---|---|---|---|---|
| Annual sales price (US/bbl) | 54.17 | 71.34 | 64.26 | 44.97 | 60.00 |
Produced oil from Kongnan is being gathered in oil tanks placed at each oil producer well site, and each well has one or a pair of oil gathering tanks.
At that point, oil is passed through a flow meter and enters Dagang Oil Field joint gathering station.
The central processing facility of the Dagang Oil Field which is operated by one of the largest oil companies in the world.
Kongnan Annual oil Sales Production Forecast (Gross Basis)
Year |
Kongnan Annual Oil Sales Production Forecast (Gross Basis) (Bbl) |
||||
|---|---|---|---|---|---|
Proved |
Probable |
Possible |
Proved + Probable |
||
| 2022 | 577,757 | 21,246 | 13,717 | 599,003 | |
| 2023 | 682,611 | 236,062 | 326,082 | 918,672 | |
| 2024 | 602,495 | 405,251 | 381,227 | 1,007,746 | |
| 2025 | 503,395 | 406,584 | 340,307 | 909,979 | |
| 2026 | 405,411 | 339,773 | 279,208 | 745,184 | |
| 2027 | 300,060 | 262,548 | 214,033 | 562,607 | |
Oil Price Forecasts as of December 31, 2021
The international benchmark Brent crude oil price averaged US$71/bbl in 2021
- Price continues to surge past US$100 since 2022 and shall maintain at a high price environment
- High oil price to continue in 2022 due to geopolitical situation but has yet to be reflected by third party professionals
| Year | Brent Oil Price by management (US$/bbl) | Oil sales Price Forecast for Kongnan Block (US$/bbl) | Expected Avg. Brent Crude Price by Reuters’s Survey (US$/bbl) |
|---|---|---|---|
| 2022 | 80.00 | 75.00 | 82.00 |
| 2023 | 79.00 | 74.00 | 83.00 |
| 2024 | 77.00 | 72.00 | 83.00 |
| 2025 | 78.54 | 73.54 | 82.00 |
| 2026 | 80.11 | 75.11 | 80.00 |
| 2022 | 80.00 | 75.00 | 82.00 |
Disclaimer
This document and any enclosures or attachments are confidential and proprietary and are prepared on the understanding that it is solely for the benefit of the addressee(s). To protect the confidential and proprietary information included in this material, unless we provide express prior written consent, no part of this document should be reproduced, distributed, forwarded or communicated to anyone else and, in providing this document, we do not accept or assume any responsibility or liability whatsoever.
THIS MATERIAL DOES NOT CONSTITUTE AN OFFER OR SOLICITATION OF A FINANCIAL PRODUCT OR FINANCIAL SERVICE IN ANY JURISDICTION WHERE, OR TO ANY PERSON TO WHOM, IT WOULD BE UNAUTHORIZED OR UNLAWFUL TO DO SO. Any such prohibited offer or solicitation is void and StormHarbour will disregard any communication received in respect thereof.
This material is provided for informational purposes only and should not be construed as a specific investment recommendation or investment, financial, tax, legal or accounting advice, and should not be used as the basis for any investment decision. Transactions in financial instruments or other products may carry risks, which may in some cases be substantial and may even equal or exceed the entire principal invested, and therefore certain transactions may be inappropriate or unsuitable for certain investors. Nothing in this website is prepared in relation to your particular circumstances, and before making any investment or taking any action with respect to an existing investment you should consult financial, legal, accounting, tax and other advisors as appropriate. By accepting and using this website, you are deemed to be represent and warrant to StormHarbour that you are able to make your own evaluation of its contents and that you are not relying on StormHarbour for advice or recommendations. You should only accept and use this website if you ARE A PROFESSIONAL/ ACCREDITED INVESTOR THAT CAN MAKE THE REPRESENTATION AND WARRANTY IN THE PRIOR SENTENCE.
This document is based upon information available to us at the date of this document and takes no account of subsequent developments. In preparing this document we may have relied upon data supplied to us by third parties and therefore no warranty or guarantee of accuracy or completeness is provided. We cannot be held accountable for any error, omission or misrepresentation of any data provided to us by third parties. We will not undertake to update or review any such information contained in these materials, whether as a result of new information or any future event or otherwise. This document is not intended by us to form a basis of any decision by any third party to do or omit to do anything. We accept no liability or responsibility for any loss whatsoever arising from the use of, or reliance on, the information contained herein.
Any opinions or assumptions in this document have been derived by us through a blend of economic theory, historical analysis and/or other sources. Any opinion or assumption may contain elements of subjective judgement and are not intended to imply, nor should be interpreted as conveying, any form of guarantee or assurance by us of any future performance. Views are derived from our research process and it should be noted in particular that we cannot research legal, regulatory, administrative or accounting procedures and accordingly make no warranty and accept no responsibility for consequences arising from relying on this document in this regard.
Some of the statements in these materials may contain or be based on forward looking statements, forecasts, estimates, projections, targets, or prognosis (“forward looking statements”), which reflect our current view of future events, economic developments and financial performance. Such forward looking statements are typically indicated by the use of words which express an estimate, expectation, belief, target or forecast. These forward looking statements contain no representation or warranty of whatever kind that such future events will occur or that they will occur as described herein, or that such results will be achieved, as the occurrence of these events and any results are subject to various risks and uncertainties. Actual results may differ substantially from those assumed in the forward looking statements. We will not undertake to update or review the forward looking statements contained in these materials, whether as a result of new information or any future event or otherwise. Past performance is no guarantee of future results.
Further information may be provided by the Private Placement Memorandum. In the event of any discrepancy between this Presentation and the Private Placement Memorandum, the provisions of the Private Placement Memorandum shall prevail.
This Presentation and all information and opinions in it are the property of StormHarbour. You may not use any portion of this Presentation except for your personal use, and you may not otherwise distribute any portion of this material to a third party without the written authorization of StormHarbour.
Please click here for our Legal Terms and Conditions of Use.