HUGE PROSPECT ON D1 OILS

D1 was originally established in 2002 to focus on the development of a portable refinery technology to produce biodiesel for the UK transport industry. During this period, it was concluded that the high cost of rape seed oil, the main feedstock for biodiesel production in Europe, renders its use commercially unattractive. As a result, D1 explored the economics, suitability and yields of a variety of specific energy crops. During 2003, jatropha curcas was identified as its feedstock of choice and the focus turned to securing output from jatropha plantations.

Jatropha was selected as D1's primary energy crop due to it's high productivity, durability and longevity. Jatropha trees can be grown on marginalised land and are durable to the elements. Furthermore, jatropha can grow in areas of minimal rainfall, although it grows better in areas of higher annual rainfall. Jatropha trees produce nuts, which contain oil, for an average of thirty years and generally have their first harvest within two years of planting. Biodiesel refined from jatropha oil complies with EN 14214, the current European standard for biodiesel. Biodiesel meeting EN 14121 specification is an approved blend when mixed with petroleum diesel.

D1 is now commercialising its D1 20 refinery able to produce eight million litres of biodiesel per annum and will utilise jatropha oil as its main feedstock. D1 believes it can maintain low production costs and produce consistent, high volume quality output through sourcing existing feedstock supplies, cultivating new yields of jatropha on existing plantations and setting up D1 20 refineries regionally. D1 is working with highly regarded agronomy and biotechnology research and development facilities in India and South East Asia and is participating in the establishment of nurseries in a variety of locations in the Asia Pacific region. These nurseries will test imported jatropha seeds against indigenous varieties to determine which will grow best under a region's climatic conditions. In addition, D1 has recently acquired the rights to a proprietary growing media which targets the specific nutritional requirements of jatropha.

The global market demand for biodiesel is growing. International energy and environmental policies have helped to create a demand for biodiesel which is estimated to reach at least 10.5 billion litres by 2010 in the European Union alone. Based on current capacity, feedstock availability and positioning in the market, the global production of biodiesel is expected to reach approximately
3 billion litres by 2010, less than one third of the projected demand in the European Union.

D1 Oils aims to become a global, sustainable, low cost producer of biodiesel and supplier of crude vegetable oil used in the production of biodiesel. To reach this objective, D1 will manage its operations regionally, securing plantation rights and establishing refinery operations in each region, thus controlling aspects of the supply chain from seed selection through to the sale of biodiesel to end customers.

To this end, D1 has established four regional operations:
UK (Teesside and London) South Africa (Johannesburg) Asia Pacific (Manila, the Philippines) and India (New Delhi).

the mail on sunday says a lot, mainly shit. The times usually report well placed rumours and I think a joint partnership between D1 and BP could well be a possibility,

Ooh er. Going south.

KEAYDIAN
It must have been some thing Potts has said.

What a cracker driver.
I've just added a few more.

bought a few at 278.25 cos i think the share and the company is intrinsically good ..... with hindsight could have bought even cheaper, but think the med/long term prospects are very good

i think, however ill wait for the contract note, that I added at around 270.
however Was it not for an error with my trading service cynic I would be in at the same price as you.

D1 Oils plc

Update BUY Expected increase > 15%

D1 Oils confirmed yesterday that it is in talks with a number of interested parties. This does not come as a surprise as the business has been successful in meeting its initial planting targets, while spot prices on vegetable oils continue to rise due to continued refinery capacity build up and a positive regulatory framework for biofuels. Additionally the attractiveness of 8000 metric tonne (MT) refining units (D1 20) allow for greater flexibility and is cheaper to owner operate. D1 has interim refining capacity of 32,000 MT and is forecast to have 72,000 MT capacity by the year end. D1 has agreements with contract farmers for the supply of Jatropha oil at approximately $300-$330 per MT.
D1 is committed to pay the contract farmers market rate in order to incentivise further planting.
With Rapeseed Oil trading at $670-$700 MT and Soy at $620 MT landed in the UK we are confident that D1 can substantially undercut the edible feedstocks of choice. Our forecasts do not include the potential for D1 20 unit sales. D1 has a contract for the supply of 16 D1 20s (4 units each year from 2006 through to 2009) to its franchisee (D1 Australia) for refining capacity of 128,000 MT at a cost of 23.2mln and a royalty of 32mln over ten years to D1 oils (total contract value to D1 is 55.2mln).
We have not included this in our forecasts nor have we included the opportunities for carbon sinks and fuel switch in our forecasts. We remain buyers as the current valuation fails to reflect the potential for upgrades in our current modelling.

Other operators evaluating the use of Jatropha include BP, Indian Oil/Indian Railways, Tata Motors
and Reliance Industries. It is likely that interested parties will come from the Oil and Gas sector as they posses in the necessary infrastructure for transportation and storage of fuels while they attempt to offset their carbon footprint.
Current off take agreements for its planting programme amount to 42,100 hectares which equates to approximately 42,000 tonnes of oil, moving forward (post year 3) we expect 1.8 MT of oil per hectare from mature plantations. We are optimistic that the company is likely to reach a 2006 planting programme of approximately 189,000 hectares. Plantations are concentrated in three main regions Southern Africa, India and South East Asia. D1 Mohan has around 30 agents actively working in the Tamuil Nadu area securing additional contract farmers in the 1 to 5 hectare sized plantations. D1 has
also secured planting arrangements (contract farming) with Williamson Magor Group (tea plantation company) for initial planting on 25,000 hectares with mature harvest in 2009. Seed/Oil purchase contracts of note have also been concluded with PManek Biofarms (40,000 hectares), the State Government of Mizoram (100,000 hectares), RPMC in India (155,000 hectares) and in Zambia with the support local farming communities and the government amount to 174,200 hectares
The recent UK budget confirmed the level of Road Transport Fuel Obligation (RTFO) as 2.5% in 2008-09 and 3.75% in 2009-10, reaching 5% by 2010-2011 (as a % of biofuel versus fossil). The biofuel duty incentive of 20p per litre continues to at least 2008-09. The RTFO buy-out price will be 15p per litre in 2008-09. This will be reduced to 30p per litre in 2010-11. Germany does not plan to tax biodiesel fully until 2011, although we expect that a 9 euro cent tax per litre on biodiesel (tax on fossil is 45 euro cents). Additionally the government is likely to impose mandatory blending of biodiesel from January 2007.
The critical financial driver for D1 is its ability to produce cheap sustainable crude vegetable oil at a price which can undercut the current feedstock of choice, namely rapeseed, soy, and sunflower seeds (all priced at edible consumption levels). Jatropha can be grown on marginal/waste land, thereby removing the issue of planting energy crops on arable food producing land. The output (oil) from jatropha plantations is significantly higher than alternative feedstocks. D1 successfully processed the
CJO to meet EN14214 standard, by utilising their proprietary degumming units.
We expect D1 Oils to process approximately 13,000 tonnes of biodiesel this year (153,000 tonnes in 2007) using alternative feeds stocks such as soy, before we reach the point of first meaningful commercial harvests in 2008. Additionally, we expect the company to sell D1 20 refineries to third parties at net margins of approximately 20% in order to meet its target of 2007 profitability.
Yea-End Sales EBITDA PBT EPS Cash EPS DPS Div Cover PER 31-Dec 1000s 1000s 1000s (p) (p) (p) (x)

2005 416 -8,077 -7,405 -28.00 -28.00 0 n/a -10.79
2006f 6,968 -8,419 -8,964 -27.00 -25.00 0 n/a -11.19
2007f 88,853 987 -514 -2.00 1.00 0 n/a -151.00
2008f 153,973 27,629 23,905 58.00 64.00 0 n/a 5.21

Source: Bell Lawrie

AIM Basic Materials

06 July 2006

303p (priced as at 05/07/06)

Year Price Range:

450p-154p
Market Cap:
100.4m

NAV:
75p
EPIC:
DOO

FTSE All Share:

Barefoot1 - 10 Jul'06 - 22:06 - 3344 of 3352 edit

BUY @ 303p.....:0)

So they expect the sp to increase more than 15% from 303p....which is over 350p....and thats without the Auz/NZ deal and BP on board....can see at least 5 in the near future....dyor etc...;0)

Dropping to 258p now...something is not right

Nothing is exactly "not right" other than I suspect the lemmings who bought in on the rumour of a t/o have had their fingers burnt. IMO, DOO is a good company in the right sector and well woerth the hold. May top up in due course especially if drift continues.

EK is apparently desperate to close his short after he was given misinformation about the company....hes meant to be in serious trouble after he posted lies on advfn about the company...hold those shares...an illiquid stock and news can come any time.....;0)

The Auz/NZ deal was on the AUZ news 2 days ago...they must be preparing to float and getting publicity....this deal is not in the sp ...once the company floats and the deal is finalised would expect it to add at least 1 to the price....the talk rumours also have to be true as the company wouldnt be allowed to say it if it werent....dyor etc :0)

Barefoot ...... add 1 to sp? ...... in your dreams pal! ..... Whatever the announcement, unless it is a done deal of a t/o, then a quick spurt of 50p would be going well.

The Auz/NZ deal is worth 30m to DOO....its not in the price yet becoz the Auz company has to float before Oct first.....the Auz company has started publicity in the last couple of days so hopefully the float is not far off......bet the sp is 5 by Sept/Oct....just my opinion......we shall see....:-)

and if BP come on board...who knows what it will be.....by the way im female and been in DOO since it floated...:-)

Barefoot (so was Sandie Shaw!).... shall be thrilled if your prediction bears fruit, but sure shall not hold my breath ...... nor do I hold it against you that you are a girlie .. lol!

Lol....yeah wouldnt hold your breath...yoo may turn blue.....:0)

The rumour in the paper says BP offered 5......and others say they expect a lot higher than 3.....we will just have to wait and see.......

While I note that UBS now holds about 10%, that does not mean that a t/o is imminent ....... With regard to BP, I read over w/e (I think) that they were contemplating a JV with DOO, which again is a long way short of a t/o, though encouraging news nevertheless ....... My own view of this supposed 5 offer is that it is just typical wishful thinking, probably generated soemwhere like ADVFN.

I dont know if there is any relevance but the 15sma is touching the 200sma...the last time they crossed was just after DOO floated and the sp went from 150p to 560p.......just a nice thought to start the day with :0)