Oil, gas, blockchain

Tokenized oil and gas production and distribution through blockchain.
The symbiosis of revolutionary financial instruments and indispensable minerals with a centuries-old history of maintaining and increasing capital.
CryptoEnergy is an opportunity to take part in the development of a large hydrocarbon field in Russia. It will comprise the best of two worlds: the huge and significant oil industry, and the innovative and revolutionary crypto industry. Investors shall benefit from the stability of a solid economic field like oil exploitation, and also from the dynamism and flexibility of the blockchain-supported crypto economy.
The total revenues for the oil and gas exploration and production industry (E&P) surpassed the $2 trillion mark in 2017, comprising between 2% and 3% of the global GDP
2
Trillion
USD
In the last 10 years, oil & gas production in the Siberian region of Irkutsk has increased from 460,000 to 18,000,000 tones. A growth of 3,913%
3,913%
increase
Profitable icon
Profitable
CryptoEnergy has a high profit potential. It will allow to invest in oil at significantly discounted prices
Stable icon
Stable
Russia is currently one of the most stable oil producing countries in the world, both politically and economically
Hi_quality icon
High quality
The ESPO mixture oil to be produced by CryptoEnergy is of Light-Sweet quality, traded at a premium over Dubai and Brent crudes
Innovative icon
Innovative
CryptoEnergy combines the tradition and experience of the oil & gas industry with the innovativeness of the crypto-world.

Video presentation

CryptoEnergy Oil Production Project

The licensed area is located 110 km to the north of Irkutsk.

The total area of the site is 3953 km2. License No. IRK 14375 NR, for the right to use the subsoil of the licensed area, was issued on January 28, 2008 for a period of 25 years. The license expires on January 28, 2033.

The licensed location for the project is a place with high potential for oil extraction for several reasons, among them:
•  Geological prospecting works have proven the oil and gas content of Lower Cambrian deposits from the Ushakov suite to Angarsk suite, where the location is situated
•  There is availability of structural and lithological traps; allowing for its consideration as a highly prospective region based on the fact that oil and gas are available in virtually all the complexes
•  The prospects may also be connected with the fringes of the Ushakov deposits and lower deposits of the Moti suite in the north part of the territory explored
•  The region is characterized by extensive development of collectors
Expert evaluation conducted on the potential reserves of the licensed site showed the following extracted hydrocarbon reserves:
Oil
at least
28.6million tons
Gas
at least
40.0billion m³
Condensate
at least
4.0million tons
Area on map
  • Latitude: 53°24’42”
  • Longtitude: 103°50’02”
Open map Close map

Production volumes and technological aspects

Mineral extraction
There exist three key factors that affect production volumes of oil and natural gas on the licensed site:
1
Geological
reserves
General geological reserves of oil and natural gas directly depend on the thickness of the bearing stratum and its specifications. The company has taken a conservative approach in evaluating hydrocarbon reserves. The amount of actual resources should be much greater.
2
Extraction
rate
Depends on the bearing reservoir specifications and, basically, on the permeability, reservoir pressure, oil saturation and methods of extraction.
3
Sales
conditions
Company has planned the production volumes, taking into account the fact that annual hydrocarbon production shall not exceed 4-5% of the value of those that have been proven and placed on the balance sheet at the industrial operation stage.

Taking into account the available margin and average production volume for one well used for production, daily output has been projected at:

vertical well:20 tons/day.
horizontal well:100 tons/day.
The estimated planned oil production according to the years of project development is as follows:

Roadmap

1
1
Stage. Exploration
Seismic survey. Purchase of drilling equipment. Surveying of previously drilled wells.
  • Проведение полевых сейсморазведочных работ МОГТ 2Д (Метод общей глубинной точки).
  • Обработка и интерпретация выполненных полевых сейсморазведочных работ МОГТ 2Д, увязка их с ранее выполненными работами и создание единой структурно-тектонической модели.
  • Подготовка дополнений к Проекту поисково-оценочных работ на участке недр.
  • Приобретение бурового оборудования, его мобилизация (транспортировка) в район выполнения работ, шеф-монтаж и испытания оборудования.
  • Подготовка дополнений к Рабочему проекту на строительство поисково-оценочных скважин.
  • Подготовка планов обследования и ремонта ранее пробуренных скважин №1, №2, и №3 и согласование их с Федеральной службой по экологическому, технологическому и атомному надзору (Ростехнадзор).
  • Обследование скважины №1.
Cost – USD 8.3 million
Period – 3 months
Drilling of wells No.1, No.2 and No.3.
  • Бурение поисковой скважины со вскрытием терригенных горизонтов рифея с использованием технологии зарезки бокового ствола (ЗБС) на базе скважины №1 с глубины 900-950 м с выполнением в скважине:
    • полного комплекса геофизических исследований скважины (ГИС);
    • отбора керна из перспективных горизонтов;
    • вертикального сейсмического профилирования (ВСП);
    • испытание перспективных горизонтов в открытом стволе и в эксплуатационной колонне;
    • отбор и анализ пластовых флюидов.
  • Обследование скважины №2.
Затраты – 2,1 млн. USD
Период – 2 месяца
  • Бурение поисковой скважины со вскрытием терригенных горизонтов рифея с использованием технологии ЗБС на базе скважины №2 с глубины 900-950 м с выполнением в скважине:
    • полного комплекса ГИС;
    • отбора керна из перспективных горизонтов;
    • ВСП;
    • испытание перспективных горизонтов в открытом стволе и в эксплуатационной колонне;
    • отбор и анализ пластовых флюидов.
  • Обследование скважины №3.
Затраты – 2,1 млн. USD
Период – 2 месяца
  • Бурение поисковой скважины со вскрытием терригенных горизонтов рифея с использованием технологии ЗБС на базе скважины № 3 с глубины 900-950 м с выполнением в скважине:
    • полного комплекса ГИС;
    • отбора керна из перспективных горизонтов;
    • ВСП;
    • испытание перспективных горизонтов в открытом стволе и в эксплуатационной колонне;
    • отбор и анализ пластовых флюидов.
Затраты – 2,1 млн. USD
Период – 2 месяца
Cost – USD 8.1 million
Period – 6 months
Carrying out resource audit. Resource accounting.
  • Подготовка геологической модели залежей углеводородов, выявленных по результатам проведенных геологоразведочных работ.
  • Подсчет запасов по выявленным залежам углеводородов с защитой их в Государственной комиссии по запасам.
  • Проведение аудита запасов международной компанией (Нефтегазконсалтинг-Миллер энд Ленц).
  • Подготовка проекта опытно-промышленной эксплуатации месторождения.
  • Подготовка проекта второго этапа поисково-разведочных работ на лицензионном участке.
Cost – USD 0.4 million
Period – 7 months.
USD 16.82 millionStage cost
9 monthsStage duration
2
2
Stage. Development and exploitation of deposits
Acquiring additional drilling equipment. Additional exploration of the deposit. Commencing pilot oil production.
  • Приобретение дополнительного бурового оборудования для разведочного и эксплуатационного бурения (две мобильные буровые установки с верхним приводом).
  • Разведочное бурение: двенадцать разведочных скважин.
  • Проведение полевых сейсморазведочных работ МОГТ 2Д и МОГТ 3Д.
  • Обработка и интерпретация выполненных полевых сейсморазведочных работ МОГТ 2Д и МОГТ 3Д, увязка их с ранее выполненными работами и доработка единой структурно-тектонической модели.
  • Корректировка геологической модели залежей углеводородов, выявленных по результатам проведенных геологоразведочных работ.
  • Пересчет запасов по выявленным залежам углеводородов с защитой их в Государственной комиссии по запасам.
  • Проведение аудита запасов международной компанией (Нефтегазконсалтинг-Миллер энд Ленц).
  • Мероприятия по обустройству месторождения.
  • Добыча нефти в рамках проекта опытно-промышленной эксплуатации.
  • Подготовка проекта разработки месторождения.
Cost – USD 58.26 million
Period – 12 months
Operational drilling. Deposit development. Achievement of scheduled indicators.
2020 год:
  • Буровые работы в рамках проекта разработки месторождения: бурение 12 эксплуатационных скважин с горизонтальными участками.
  • Проведение работ по обустройству и технологическому поддержанию проекта.
  • Мероприятия по утилизации попутного газа.
Затраты – 101,58 млн. USD (обеспечивается за счет реинвестирования средств от добычи углеводородов).
Период – 12 месяцев

Объем добычи нефти и газового конденсата увеличится до 600 тыс. т в год, годовая выручка от добычи углеводородов составит 161,48 млн. USD

2021 год:
  • Буровые работы в рамках проекта разработки месторождения: бурение 12 эксплуатационных скважин с горизонтальными участками.
  • Проведение работ по обустройству и технологическому поддержанию проекта.
  • Мероприятия по утилизации попутного газа.
Затраты – 90 млн. USD (обеспечивается за счет реинвестирования средств от добычи углеводородов).
Период – 12 месяцев

Объем добычи нефти и газового конденсата увеличится до 1 млн. т в год, годовая выручка от добычи углеводородов составит 304,02 млн. USD

Cost – USD 43 million (also provided through the reinvestment of funds received from the production and sale of hydrocarbons).
Duration – 12 months
USD 101.26 millionStage cost
24 monthsStage duration

CryptEn investment

 
Every CryptEn token gives its owner the right to receive one (1) barrel of ESPO Light-Sweet mixture crude oil, produced at the CryptoEnergy oil fields in the Irkutsk location, or its equivalent market price, at a maturity date of forty eight (48) months after the end date of the IEO

The team

Ilgiz Salihzyanovich Mukhametzyanov
General director of the project

Graduated from the Ukhta Industrial Institute and obtained a degree in drilling oil and gas wells. Qualification - mining engineer. Completed his training and internship at the Halliburton Energy Services, Dallas (USA), specializing in directional drilling. Has thirty years of experience in the oil and gas industry. He advanced in his career from a driller to general director of a drilling company. He has worked at various positions in Yuganskneftegaz OJSC, Salymburneft LLC, TatNeft OJSC, Udmurtneft-Burenie LLC, Izhevskaya Drilling Company LLC in Bashkiria, Tatarstan, Western and Eastern Siberia. He oversaw the drilling of the first horizontal production well in Eastern Siberia at the largest Kovykta gas condensate field (Gazprom). He has extensive experience cooperating with the largest oil and service companies from Russia and globally.

Arkady Anatolyevich Bokserman
Project consultant (advisor)

Full member of the Russian Academy of Natural Sciences, Doctor of Technical Sciences, Professor with more than 250 published works and about 100 inventions. He founded a scientific school, including about 100 candidates and doctors of sciences in the field of oil production methodology. Laureate of I.M Gubkin awards for creating the cyclic water-flooding method and Ministry of Oil Industry awards for creating and developing the thermogas method for increasing oil production. Recognized inventor of the USSR. Honored Worker of Science and Technology of the Russian Federation. Honored Oil Worker. Honored Worker of the Fuel and Energy Complex.

Karim Halimovich Rakhmangulov
Main geologist of the project

Graduated from the I.M. Gubkin Russian State University of Oil and Gas with a degree in geology and exploration of oil and gas fields, and a postgraduate course of the Ufa State Petroleum Technical University, specializing in the development and operation of oil and gas fields. He also completed an internship at the Edmonton Training Center (Canada). Has forty years of experience in the oil and gas sector. He has occupied leading positions in the largest Russian oil companies, such as Bashneft in Bashkiria, Varieganneft, and Lukoil in Western Siberia, Oil Technology Overseas in Russia and Kazakhstan, and Sistema-Invest (AFK Sistema). He has published dozens of works and obtained several invention certificates. Honored Oil Worker of Russia.

Anatoly Leonidovich Urvantsev
Project coordinator

Graduated from the Mechanics and Mathematics Department of Novosibirsk State University in 1969. Candidate of Physical and Mathematical Sciences.

He as more than 20 years of experience with the Siberian Branch of the USSR Academy of Sciences, Novosibirsk, in the field of computational methods and software application for modeling applied tasks, including those related to the needs of the oil and gas industry.

From 2001 to 2005, he served as chief specialist of Zarubezhneft OJSC, Moscow and was responsible for Russian-Vietnamese oil projects. From 2005 to 2015, he was deputy general director and academic secretary of the A.P. Krylov VNIIneft OJSC, Moscow and he coordinated R&D projects, "smart deposits" in particular.

He has published more than 70 scientific works, including those on numerical methods for solving applied problems, problems of software development and application for modeling real processes and systems.

Khavkin Alexander Yakovlevich
Project consultant (advisor)

Doctor of technical Sciences, corresponding member of the Russian Academy of Sciences, Honorary oilman, member of the international Academy of nature and society, New York Academy of Sciences, member of the international society of petroleum engineers.

Specialist in geological and hydrodynamic bases of increasing hydrocarbon yield, development of low-permeability and clay-containing reservoirs, multiphase hydrodynamics in porous media, nanotechnology in oil and gas production.

Author of more than 170 publications, including more than 20 patents and inventions, author of the discovery.

Khavkin, the first among oilmen, among the well-known scientists of nanotechnology, was awarded the UNESCO medal "for contribution to the development of nanoscience and nanotechnology" in 2010.

Neftegasconsult-audit
Consultant (advisor) of the project

NEFTEGAZKONSULT-AUDIT is a subsidiary of the Russian independent company NEFTEGAZCONSULT with the participation of the leading international petroleum auditors - Miller and Lents, Ltd. We offer a variety of consulting services to Russian upstream petroleum industry.

Audit and evaluation of field stocks.

Drawing up a conclusion on the investment attractiveness of the asset with subsequent technical support for geological research as the project is implemented in accordance with the terms of reference.

Reserves categorization by modern domestic and foreign classifications.

Examination of recoverable reserves, taking into account modern technologies that ensure a high level of oil recovery. Estimates of reserves by different methods, including method of material balance, volumetric method, the method of analogies. Estimation of resources by different methods, including probabilistic and deterministic methods.

Creation of the geological model of the deposit (correlation of sediments, stratigraphic relationships of reservoirs, allocation of objects for calculating reserves).

FAQ

What is CryptoEnergy?
CryptoEnergy is a unique project that combines investing in oil with investing in crypto. CryptoEnergy will develop a series of oil exploration and extraction activities in a licensed location. In parallel, it will issue a digital asset that will be exchanged for the oil to be produced in the location.
Why is oil production a good commodity to invest in?
Oil is probably the most important mineral for our industrialized world. The demand for oil continues to be significant for many sectors, and the number of oil derivative products is considerable. Despite some periods of volatile prices, the long term trend is increasing. The total revenue of the oil industry worldwide is estimated to be between 2% and 3% of global GDP. This gives an idea of how essential is still oil in our economies.
Where is the oil production field going to be established?
The licensed place for oil exploration and production is situated 100 km to the north of the city of Irkutsk, in Siberia. It is one of the geographical regions with a biggest potential for oil production in Russia.
What is the quality of the crude oil extracted?
The oil produced in the CryptoEnergy location will be of the ESPO mixture quality (known this way because it is transported through the “Eastern Siberia – Pacific Ocean” pipeline (ESPO)). The quality of the ESPO oil is very high: API density 34.8 °, sulfur content 0.58-0.65%. It is considered a light mixture (Light-Sweet). For this reason, the ESPO oil blend is usually merchandised on the London and Singaporean markets at a premium of 0.75-2.5 USD/barrel in relation to Dubai Crude and Brent Crude.

FAQ

What is a CryptEn token?
The CryptEn token (symbol: CNRG) is the digital asset that shall be issued in the IEO, using the Ethereum standard ERC-20. CryptEn tokens shall be available for purchase throughout the IEO in all its phases. Each CNRG token represents an oil contract, where CryptoEnergy commits to repurchase it in exchange for 1 barrel of ESPO crude oil, or its equivalent market price, at a maturity date.
How is the price of a barrel of crude oil of the ESPO grade to which the CryptEn token linked is determined?
The current price of 1 barrel (bbl) of ESPO grade oil is based on Oilprice.com data as of the date of the last publication. The price is calculated on the basis of the FOB Kozmino delivery terms and reflects freight lots normalized to 100,000 tons, loaded 15-75 days ahead from date of publication. On the Internet, the price of ESPO oil can be found at: https://oilprice.com/oil-price-charts
Why are CryptEn tokens a good investment?
CryptEn tokens provide an opportunity to invest in both the oil market and cryptocurrency. On the one hand, during IEO, the price of the CryptEn token will be set below the market price of ESPO crude oil. In the conditions of relative price stability in the oil market, upon redemption of CNRG tokens, their owners will receive oil or the equivalent of its market price for an amount significantly greater than they spent buying a CNRG token. On the other hand, as the maturity date approaches, it should be expected that the market value of tokens on exchanges will increase and approach parity with the price of a barrel of ESPO crude oil.

FAQ

How are funds raised in the IEO going to be used?
The funds raised throughout the IEO in all its phases will be entirely dedicated to the implementation of the CryptoEnergy project, including financial and marketing activities deemed appropriate by the managing team. Depending on investment volumes, numerous variants of project implementation are possible. The company is currently extending infrastructure and carrying out the full repair of existing wells and side-tracking in wells, as well as additional seismic works, which enables the placement of larger quantity of hydrocarbons on the balance sheet.
What is the purpose of the Loss compensation fund?
The lost compensation fund (LCF) is a special reserve, consisting in a number of tokens equal to 25% of the tokens to be available for sale during each of the IEO phases. The objective of the LCF is to serve as a hedging mechanism against volatility of Ethereum cryptocurrency (ETH) throughout the process of transforming ETH to fiat, that takes on average 20-25 days.
Is there a vesting period for tokens delivery?
Yes. CryptEn tokens will be distributed to team members and advisors under a vesting schedule of 12 months, where a quarter of the tokens will be delivered every 3 months after the IEO.
What rights do CryptEn token holders have?
Every CryptEn token represents a unique promise by Tarex Business Ltd. to deliver to the corresponding token holder, one (1) barrel of ESPO Light-Sweet mixture crude oil, produced at the CryptoEnergy oil fields in the Irkutsk location, or its equivalent market price, at a maturity date of forty eight (48) months after the end date of the IEO. It functions, therefore, as an oil contract.