Rich Glory Coin
A Security Debt Tokenization
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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.
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Actively pursue complex advisory and financing assignments that leverage our global platform
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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 km 2) 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 |
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