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/

cynic Re oil prices
What goes down must come up.

so you are still buying into SEO then? ...... though re oil, i concur though may not be for a month or two or perhaps (much) longer

cynic
Small top ups along the way the captains back now so SEO should be OK from here.

cynic, driver - can we please keep mentions of SEO away from this thread. Don't wish to curse it. ;-)

StarFrog
Sorry Star but you know SEO will come good in the end so no curse intended.

Hope so for your sake driver (and others)

the captain of SEO? ..... hope he'll do the honourable thing and go down with his ship then

Nice little discussion from ADVFN on oil prices I have copied it over courtesy of SURFER2 and myself, for our interest.

driver101 - 21 Sep'06 - 16:45 - 6786 of 6794 edit


SURFER2
As crude prices spiked to record highs earlier this year, ethanol was cast into the spotlight. But now that oil prices are falling, ethanol producers are hurting. The front-month crude contract is trading near a six-month low at around $61 a barrel and is down nearly 21 percent from the record closing price set in July.

Re oil prices
What goes down must come up.




SURFER2 - 21 Sep'06 - 17:07 - 6788 of 6794

Driver

IMO.

oil price graph shows consolidation around these levels
GTL and many oilers mirroring this on graphs

GTL have stated an oil price over 20$ will ensure they are profitable

US military report on oil prices suggests oil over 50$ until 2015
I dont agree with certain policies but.....

I seriously doubt if individuals like Sir P Middleton , S A O Reilly of PVR , ect ect would undertake such massive investments based on a brief oil spike
at 75 dollars a barrell oil is about 20c a pint , 3 times cheaper than bottled water.

its a two edged sword anyway - if oil drops much more , the public will write off the peak oil theory as scaremongering and will go about using and wasting energy like never before. thus bringing about a much more rapid supply and refining crunch


Oil prices slid to fresh six-month lows today on rising winter fuel stocks and waning concern over Iran, but the world's largest exporter Saudi Arabia signalled prices may have fallen enough.


US crude was down 77 cents at $60.89 a barrel at 1130 GMT after falling nearly $2 yesterday. Oil has retreated over $17 from its July record high of $78.40 in its steepest decline for 15 years. London Brent was down 73 cents at $61.44.

The slide has revived discussion about what price would trigger a cut in Opec production to stem the fall.

yesterday Saudi Oil Minister Ali al-Naimi described prices as reasonable for the first time since the market scaled record highs. "The oil industry is convinced that this price is reasonable," Naimi told reporters in Riyadh.

"Prices now are rewarding to both producers and consumers and their impact on the global economy is small."

Some Opec ministers have signalled a price of $50-$60 a barrel should be sustained, but the cartel has avoided setting a formal target. The Opec basket stood at $58.85 yesterday.



driver101 - 21 Sep'06 - 18:29 - 6794 of 6794 edit

SURFER2
Nice to here that GTL stated an oil price over 20$ will ensure they are profitable I can't ever see it going back to those levels.

good post - i too certainly cant see oil going below 50 / 60 $ a barell for any length.

DRIVER
well balanced argument, just on the basis of supply and demand the oil business has a very healthy future. soon it will be another summer. the fall in oil price presents us with another opportunity to buy at low price excellent businesses like SEY, GTL, PVR, SOU, AST, GOO......

arise and shine for your light has come. best luck to GTL

Big volume today looks like the bottom, or it could be that the oil price is going up again.

Plant Aerial View - 07.09.06

I dont hold these shares,just seen a very interesting interview on cnn with al gore and richard branson,who are on a mission to change the dependancy on oil and he R B,wants in on ethenol!!,good luck to all holders

capetown
Cheers cape.

Fill your boots.

but be aware that ethanol from corn is expensive to produce and cars drink up 30% more than when running on petrol

Lol i guess cynic you read the times today - thats a good quote from an Interesting article.

nice pic driver too.

Article in the Sun on Saturday about British Touring Car Championship at Brands Hatch. Team RAC using 85/ 15 Ethanol and Vauxhall Astra using sugar beet ethanol.
Suggested all race cars will use within a year! Including Formula 1.

Cynic
spot on, there was an article in sunday times on these matters. however one should take action when the future earning power of a business is about to leap towards the high places. GTL is coming into top banana field. best luck