Gas to Liquid
Commencement of Operations Started 28/12/2006
The strategy of GTL Resources plc is to produce liquids such as methanol and ethanol from stranded gas, corn and other feedstocks with quality counterparties. GTL manages all aspects of a project: finance, feedstock supply, production and marketing.

In line with its strategy of seeking to develop and exploit markets for alternative fuels, GTL has, since the beginning of 2001, concentrated primarily upon developing methanol projects, principally in Australia, and, more recently, ethanol project work. The Board has recognised the strategic benefits of acquiring a cash generative asset on a shorter time scale than the typical methanol construction time of three years. In furtherance of this strategy, on 6 September 2005 GTL Resources acquired a controlling interest in Illinois River Energy (IRE) to build an ethanol plant at Rochelle, Illinois, through its wholly owned subsidiary, GTL USA, which has been established for the purpose of investing in ethanol projects in the USA. GTL USA has invested in IRE by way of a subscription for units of IRE pursuant to the Unit Purchase Agreement.

This project has the advantage that the Plant is expected to produce revenues on a shorter time scale and at a significantly lower capital cost than the methanol plant in Australia.

The Company intends to further expand within the ethanol industry in the United States or other suitable markets by selective acquisition of low cost production facilities. The Company sees itself as a potential consolidator of ethanol plants in a particularly fragmented market.

FT Tip
GTL Resources, an Aim-listed company. It raised money to build an ethanol plant in the US. Raw materials costs have risen but the price of ethanol has gone through the roof. The earnings potential should be spectacular.

New Plant

Construction started at Rochelle, Illinois site in September and production from the 50 million gallon per annum ethanol plant is expected to commence in the fourth quarter of 2006. Following unusually mild weather in Illinois the project has progressed well and is on schedule and on budget. Whilst the Companys main efforts centre on the successful delivery of the US ethanol project at Rochelle, the potential expansion of that site to 100 million gallons is being investigated. In addition and consistent
with GTLs stated strategy for the expansion of its interests in the ethanol industry, other ethanol opportunities have also been identified and will be analysed. Pictures Of The Site Under Construction March 27, 2006 http://www.illinoisriverenergy.com/html/construction.html


Arden
http://gtlresources.com/documents/ArdenAnalystResearchNote.pdf
http://www.gtlresources.com/documents/ArdenAnalystResearchNote.pdf
BBC News Item On Ethanol
http://news.bbc.co.uk/nolavconsole/ukfs_news/hi/newsid_4940000/newsid_4948400/bb_wm_4948456.stm

Ethanol Priceshttp://ethanolmarket.aghost.net/
Ethanol as a Transportation Fuel
http://energy.ca.gov/afvs/vehicle_fact_sheets/ethanol.html

Annual report for 2006
http://www.gtlresources.com/documents/GTLAnnualReport2006_001.pdf
Pics from Ethanol Producer Magazine of GTL's plant.
http://ethanolproducer.com/plant-images.jsp?plant_id=302&image_id=59
Commencement of Operations Started 28/12/2006
http://www.gtlresources.com/
Economics of Ethanol
http://www.ces.purdue.edu/extmedia/ID/ID-339.pdf
2 July 2007 GTL Resources FY pretax loss narrows, plans 13 mln stg placing to fund expansion
http://moneyam.uk-wire.com/cgi-bin/articles/200707020705014067Z.html
GTL Web Site
http://www.gtlresources.com/

RHPS tipped on 4/9/06

GTL Resources sits in the oil & gas sector. But it's making its mark by looking beyond fossil fuels, and turning corn and other agricultural crops into ethanol.

Ethanol is a serious alternative source of energy. Already, more than 40% of Brazil's cars run on it, rather than petrol or diesel.

Last week its shares ticked up to 2.7p from 2.4p after it said that it expects to commence production from its ethanol plant in Illinois, USA, in December.

"Ethanol is now an important part of the [American] government's aim to reduce the 60 per cent of oil it imports," the company reported. "It has the compelling attraction of reducing the budget deficit and supporting American farmers in a green and sustainable way. Ethanol used to be a side-show. It has now moved centre stage."

GTL is looking cheap again the company has said the plant will be up and running by the end of this year producing 50m gallons of ethanol increasing that to 100m shortly after, I feel a top up coming again.

Driver, thanks for that.

smiler
Im starting to look at what to sell to get more of these IMO the sp will double once production starts.

driver

me to, i am waiting to sell my oxs got in @ 22 on them hoping they would go back to 40 ish, dont laugh but i do have some ERX !!

smiler
ERX is sound one bit of good news and supernova.

driver

PH does make me smile posting there ! he must spend hours on the internet !

smiler
I think I will move the supernova to the ERX thread it will cheer up good old PH

He will probably print 6 more pages of ............. !

can't afford any more top ups, I'm still waiting for a DOO recovery to sell at a profit before piling in on these.

g d potts

I know how you feel ! in the same boat with OXS, I had AEN and looked what happend their !!! : (

To be, to do and to have that's the questions but to be is the key question.
If you can be then you can do and if you do it properly you will have.
Well, GTL will BE a producer very very soon. When the money starts rolling in that will be sweet.

Hello Georg where you bin all day !! you laeve it till 1908 hrs to chear us up !! but GTL DOES LOOK GOOD !! GG WHATS your thoughts on BLR ??

am no longer a holder of GTL, and confess to being at lesat temporaily disillusioned .... almost certainly good long term, but almost certainly no hurry to pile in

if GOLD drops back to about $595, that would be a much more interesting play

I think GTL has good prospects but it wouldn't surprise me if they have a shares consolidation at some point

Smiler
how is everything, nice to pause a bit to recharge energy.
For Blr, i am holding, just now i read about the discovery made by BG in the north sea and they stated that there is still value there, as you know BLR has an asset in the north sea and in colombia. COlombia has huge amount of resources and excellent opportunities are present, so in my view, patience will pays. On the other hand, management must be smart and agile. i am staying put, may be give them two years to bring the party into full swing. best luck

Silvermede
I Hate shares consolidation,in fact i am scare of them, i always sell after that.
i have one exception that's FAO. If they consolidate, i will remain invested in this case only. I thought, instead of firing the whole mediocre management, they resort to consolidation.

CYnic
i like GTL but i am always careful not buy its share at a high price. always buy on the dip. i think this is the best time for the company and they must reward tired faithful investors.

sp is so low that in real terms, highs and lows and fractions of a penny apart .... why so scared of consolidation .... makes sense to me to make a 1p share with far too big a spread etc, up to say 50p or even 1

Cynic
too right about the spread, however gtl's spread not too bad. usually the sp performs poorly after consolidation, not always but very often. i am for consolidation together with restructuring.