PermianChain Technologies Affiliate Brox Equity Acquires Calston Exploration
Calgary-based Brox Equity Ltd. has entered into an agreement to acquire 100% of Calston Exploration Inc., a privately held oil & gas company with existing upstream interests in the East Texas basin. Calston will operate as a wholly-owned subsidiary of Brox Equity, and will be renamed ‘Brox Energy Holdings Ltd.’
Brox Equity is an investment holding company focused on making direct investment in oil & gas and power generation businesses, and data mining operations. The company is an affiliate of PermianChain Technologies Inc., which has designed the Oil & Gas Blockchain-integrated Framework (OGBiF) and developed a dedicated blockchain-enabled platform to digitize, tokenize, and monetize proven natural resources. The acquisition of Calston will enhance the PermianChain project and will be used as part of Brox Equity’s gas-to-power business model.
Under the terms of the acquisition agreement, Brox Equity will issue Class B Brox Equity shares and 250 Class C shares to Calston’s existing shareholders in the form of Brox Equity Tokens (BROX), an Ethereum-based digital security, upon a token determination event.
Calston’s assets acquired include 160,000 acres located in the East Texas basin. The company has over 10 years of geological, geophysical, land and engineering studies of the project area, and estimated reserve potential of approximately 2.5 million barrels of oil equivalent (MMboe). In addition, Calston has completed extensive due diligence work in recent months to acquire natural gas producing assets with power generation in Alberta and Kentucky, with a reserve potential of over 2 billion cubic feet (Bcf) of natural gas.
“This is a game-changing deal. We believe that using the blockchain will enable us to create a whole new market for natural gas and open new investment avenues for proven oil and gas reserves. By adopting PermianChain’s OGBiF we are able to track the progress of oil and gas campaigns and prove that we are using the world’s natural resources responsibly,” said Mohamed El-Masri, Director and CEO of Brox Equity, and Founder & CEO of PermianChain Technologies.
Brox Equity also plans to invest around US$40 million to continue development and to acquire additional assets in Canada and the U.S. The company will also put power generation infrastructure onsite to convert natural gas into electricity, which will be used to power high-performance data centres and crypto-mining farms, reducing waste and creating a new revenue stream for oil & gas projects.