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).

How could D1 Oils mislead the public for more than 3 weeks on such miscalculations!
Reducing its capacity from 320,000 tonnes (as above) to only 100,000 tonnes by the end of 2007



OFFICIAL CORRECTION D1 Oils targets 100,000 tonnes refining capacity in 2007
AFX

(Company correcting time period for Middlesbrough capacity target to 2007 from 2006. Recasting lead.)

LONDON (AFX) - UK biodiesel producer D1 Oils PLC said it intends to deploy a further six D1 20 units to increase biodiesel production capacity at its Middlesbrough refinery to around 100,000 tonnes during 2007 from 32,000 tonnes at present.

The news accompanied an announcement that D1 Oils today is hosting a site visit for investors and analysts to demonstrate progress in agronomy and refining.

The company said investors and analysts will visit the Netherlands where D1 is carrying out its jatropha crop science programme, and will be given a tour of the Middlesborough site.

newsdesk@afxnews.com

that's nuts! mistake is fine (sort of), but not to realise for a month is close to gross negligence

This boils down to bad management

Elliott Mannis, D1's Chief Executive Officer didn't say he is pleased with 100,000 tonnes by the end of 2007

From todays FT......


*D1 Oils, a rival biodiesel producer to Biofuels, looks good value to Evolution who said its 300p price target appeared conservative and reiterated a "buy" recommendation after a company visit. D1's crop science programme is developing higher yielding crops of the jatropha seed. D1 Oils dipped 0.6 per cent to 194p.

Copyright The Financial Times Limited 2006

Thoroughly agree, especially as BFC would still appear to be in severe financial straits ..... doubled my own modest holding in DOO just the other day and may even buy a few more

3 Sounds good, nice article in shares mag yesterday but again they say 320,000 tonnes by 2007 from 32,000.

Evolution say they visited the plant the other day so they must be happy with whats been said...ive emailed the company about the discrepancy...if i hear anything ill let yoo know.....

Does no one proof read the news they release from D1, its very poor and sends the out entirely the wrong message.
Also, in my experience, when analysts state 'BUY' or reiterate their recommendation the S.P. tends to react positviely, but not for D1!

I rang the company last week and they said they had asked the FSA to investigate the sp movements...it would appear someone wants to keep the sp below 220p.....

0ooo - no wonder the S.P is so erratic

Cynic - I am curious as to your reasons why you have been guided by the chart on GOO, but have ignored the trend lines on DOO? My reading of the DOO chart is that there is not any indication yet of a change in direction upwards. I hold GTL & BFC but would like to get in to DOO also. Surely the chart is much more relevant here than with GOO which relies heavily on news releases to change the sp?

have held DOO onm and off for quite a while and am not always guided by charts, though i do find them a useful tool ..... in fact, in my amateurish way, i reckoned the chart showed some reasonable support around 195 ...... from memory, got back in following an interesting article in Sunday Times a couple of months ago and also from some knowledge about theio plantations in India and Saudi (i think)

Apparently the same article in the FT today recommends the selling of BFC shares.....

TouchBarefoot. BFC is not doing well, nor is GTL yet, hence my reluctance to buy another poor performer. But 6-12 months should see both BFC & GTL produce a good return, imo.
Happy to watch & wait for a little while longer here, but I have been proved wrong before & missed the boat! :o)

lol...sorry Harrycat....someone on iii thought i had purposely missed that bit off...but i dont subscribe to FT so the bit i posted was all i could see....:0)

i have been in and out of BFC since it floated but havent touched it since just before suspension...

Harrycat in my opinion DOO are a strong buy at anything below 200p, you would be lucky to have your initial investment at that low price. Both with BFC and GTL you are probably holding at a loss, if you buy DOO now you will be buying a share, (try and understand it might sound strange), that has the potential of GTL and BFC but is at its relative bottom price to what they and DOO is now..
I did my best to make that understandable.

Sure would not want to compare DOO with BFC for quality .... GTL is, imo, a different kettle of fish from either

I am afraid Beloved has thrown out the Sundays ...... However, ST Business had a longish article on alternative fuels, in which DOO in particular received plenty of mention and attention ..... Worth reading for interest if nothing else

I think, or at least hope, that 190 or thereabouts provides a reasonable support level, so have got a bit greedy and topped up yet again ..... This company ought to be much stronger (imo), but sp currently seems disinclined to move ahead ..... no obvious reason, and certainly the company has been getting at least its fair share of press comment.


Chart below:



Red line = 50 dma
Green line = 200 dma


Some resistance likely as these levels are met.