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/

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.

COH consolidated and they are doing well! :-)

Silvermede
COH is excellent company, no doubt about that, most of the companies that did not do well after consolidation are those with poor management. i don't hold COH but hold CFE. i will be buying into COH.

I have no problems with consolidation SER recently consolidated and its doing well also in the past DNX, ENN, PMO are all doing OK.

georgetrio, good luck with COH, I'm sure you won't be dissappointed.

With regards GTL, if it follows RVA then the future looks bright.

an interesting mix ..... chemical grade ethanol and coffee!

cynic
coffee to keep the driver fully awake and the ethanol to energise the car and reduce carbon emission, not bad mix

driver
i think, i have to learn to live with consolidation in some cases as it usually happens with these little fishes.

On the 28th June 2006, GTL, the project development company focussed on ethanol production in the US, announced that it has applied for permits to extend the production capacity of its plant at Rochelle, Illinois, from 50million gallons per annum to 100million gallons per annum. The directors expect the permit to be finalised in Q4 2006. (Production of 50million gallons will start in December 2006)

On the 30th August 2006

The Company GTL said, it expects to begin production at the plant in December 2006, ahead of schedule and the project is on budget.
Chairman Peter Middleton said: The key personnel for Rochelle are in place and we look forward to delivering revenues throughout 2007.

GTL RESOURCES

CAPITAL................59.59MILLION

No of ordinary shares....................330 910 285

Share price...................................2.60p on the 08/09/06

Start of production.........................December 2006

Quantity of ethanol per annum to be produced......50Million gallons

Production to increase to 100Million gallons per annum

EXTRACT FROM FINAL RESULTS

The demand for ethanol has therefore significantly increased since GTL
began constructing its plant. The price of spot ethanol has spiked to $4
to $5/gallon due to shortage of supply and the rising of Oil.
However, more representative term supply prices have been related to the price of gasoline at $70 oil have typically been in the $2 to $2.50 per gallon range

Anyone any information on recent large movers?

05/09/06 16:22 2.8 5,000,000 T 2.7 2.85 Buy 6,547,373 4,937,710 120,000
08/09/06 16:28 2.5 5,000,000 T 2.5 2.7 Sell 258,248 5,820,979 0
06/09/06 16:21 2.8 4,355,000 L 0.0 0.0 ? 0 0 0
05/09/06 08:39 2.82 2,500,000 O 2.75 2.9 Sell 443,808 2,925,906 120,000
05/09/06 15:54 2.7 1,100,000 T 2.7 2.85 Sell 992,155 4,937,710 120,000

did not buy this morning, but my own inclination for reasons posted, is that DOO may currently be a better bet in this sector

laurie squash
There has been speculation on other sites on the recent large movers whether they are buys or sells as we approach production lift-off I would assume big players are getting into there own positions in or out.