Company GTL Resources PLC
TIDM GTL
Headline Gains Australian Funding
Released 07:00 9 Oct 2003
Number 6894Q






RNS Number:6894Q
GTL Resources PLC
09 October 2003

Immediate Release: 07.00am 9 October 2003

GTL Resources PLC ("GTL")

GTL gains Australian Government infrastructure funding of A$35.4 million


The Chairman of GTL Resources PLC has today confirmed the company will proceed
to finalise the construction and financing of a 1million tonne p.a. methanol
plant on the Burrup Peninsula in regional Western Australia.


The decision was confirmed following an offer from the Australian Government to
provide support for vital common use infrastructure for the region. The value of
this investment incentive is up to A$35.4million and is subject to final
documentation.


The GTL project value is in excess of A$700million and will create 600 jobs
during construction and 85 once operational.


"Today marks a new beginning for the Australian methanol industry," said
Chairman, Mr Peter Middleton.


"This project is the primary focus for GTL. It is the right size for Australia
and the right size for the international market," said Mr Middleton.


The company has secured a 15-year sales agreement for 100% of the output.


Australia is uniquely placed to develop methanol with strong reserves of natural
gas and proximity to large markets in Asia.


Construction is expected to begin in Q1 2004. Once operational, the GTL project
is expected to be in the top ten exporters from Western Australia.


GTL is grateful for the support of the Federal Agency, Invest Australia, and the
Western Australian Government in the process to date.


GTL will continue to work closely with both the Federal and State Governments in
delivering this project.

For further information:


London:

GTL Resources PLC
Peter Middleton, Chairman +44 (0)20 7493 3393

Buchanan Communications
Tim Thompson / Catherine Miles +44 (0)20 7466 5000


Australia:


Parker & Partners Public Affairs
Melissa Cheesman +61 (0)414 254 717


Notes to Editor:


GTL Resources plc:


The name GTL Resources plc (GTL) reflects the Company's core activity, which is
the application of technologies for the conversion of stranded natural gas into
marketable liquid products. Gas to Liquids...G-T-L.


GTL Resources plc is a publicly listed company on the Alternative Investment
Market of the London Stock Exchange.


GTL is the sponsor of the project and has created two subsidiary companies
registered in Australia, GTL Holdings Australia Pty Limited, from which the
equity portion of financing will be derived and Liquigaz Pty Ltd, the company
which will manage the project.


Gas to liquids and methanol:


Gas to Liquids is a term encompassing a number of processes, whereby gas
previously without a market can be exploited as a liquid thus creating
commercial value. In our case we are talking about converting gas into methanol.


Australia has the necessary requirements to support the development of a Gas to
Liquids industry; large gas resources, easy access to potential markets and a
low level of country risk.


Methanol is a clear, colourless liquid, a basic chemical building block used to
produce formaldehyde, acetic acid and a variety of other chemical
intermediaries. Methanol is also widely used to make MTBE (methyl tertiary butyl
ether) an additive used in cleaner-burning gasoline. It is used in the
production of plastics and as such has the potential to spawn a plastics
industry.


Methanol is produced from natural gas through a process of steam reforming,
synthesis and distillation.


The project:


The aim of the project is to construct a plant just north of Withnell Bay,
Dampier Western Australia capable of converting stranded gas into methanol. The
plant will be capable of producing approximately one million tonnes of methanol
per year for sale within the Asia market, the fastest growing methanol market in
the world.


The key facts on the project are:


Construction of a A$700million plus, 3,000 tonne/day methanol plant at
Dampier on the Burrup Peninsula, WA;
Production and exports of 1million tonnes per annum valued up to
A$350million;
600 jobs during construction and 85 once operational; and an
Off-take agreement in place already for 100% of the product for 15 years.


This information is provided by RNS
The company news service from the London Stock Exchange

Price dropped quite a bit yesterday for no apparent reason. They had their AGM on 17 Nov but haven't posted the results of this yet, which is also a bit suspicious. I searched all over the web yesterday trying to find any news items - but there wern't any. So no explanation.

However in my serach I did notice one thing. A lot of older news stories were predicting methanol production in Australia to commence toward the end of this year. Currently, as I understand it, they haven't even begun developing the Australian site. So it looks as though they are a long way behind schedule. But the potential is huge.

Thanks -StarFrog for your input, like you say huge porential, one to watch..

could this recent purchase be a signal of actually getting a deal signed fr one of the plants. we have been waiting long enough

topped up this morning, if the boss is buying 250k then he must be hopeful of signing / starting, or totally daft which apparently he is not.

Something is going on with GTL.

I have been monitoring this stock for the last month or so, trying to decide whether I wanted to top up or not (can't go much lower surely?). Then last night at the close of play, a massive X trade went through of 35,779,524 shares that was reported as a BUY at 1.75p. This represents about 10% of the issued capital.

Who was it, and do they know something that we dont? Without any further information to hand I decided to take the bull by the horns (no pun intended) and have topped up this morning. Will I regret it?

DYOR etc. LOL

Hi Starfrog,bought at 10.5 along timeago,suffering over 80 percent losses, then bought 100k today to cut projected breakeven target s.p. down to3.01, is somenews imminent.

Minx,are you around ,any news.

Been monitoring these, seems to be heavy buying from last Thursday onwards.
No sells as yet recordered this morning.

GTL Resources PLC
28 June 2005


For Immediate Release 28 June 2005


GTL Resources

("GTL" or the "Company")

STATEMENT RE SUSPENSION

GTL Resources (AIM:GTL) announces that the Company is in advanced discussions to
acquire a controlling interest in Illinois River Energy with a view to
constructing an ethanol plant in Rochelle, Illinois, which will produce 50
million gallons of ethanol per year once construction is completed, expected in
October 2006. If successful, this will lead to a reverse transaction pursuant to
the AIM rules. As a consequence of GTL Resources entering into these
arrangements and the Company's recent share price appreciation, the Board has
requested that the London Stock Exchange suspends trading in the Company's
shares until the nature of any future strategic collaboration can be clarified.

The total cost of the acquisition and plant construction is US$80 million,
funded by US$47 million debt, which is in place, and a 60/40 debt equity split
subject to a fund-raising and shareholder approval at an EGM.

Commercial contracts have been agreed and site permits for construction have
been approved.

Star frog ,Minx, where are you ,see the news today, a reverse t/o.

interesting, thats really good news now i might get back some of the 2.70/share I paid for this dog

lol

mbugger - I'm still here.

At last some news (I think!). I had wondered about the rise in price over the last few days and was deciding whether to top up again. I didn't - missed the boat. Lucky some people got in just in time. And there were large volumes being bought. Insider knowledge?

But is a reverse takeover necessarily good news? Note that in the RNS it says '....subject to a fund raising...' Such statements always worry me.

But ever the optimist, fingers crossed and all that lets see what happens over the next few days. LOL

Hi star frog, i topped up at 10 a.m. just in time,last reverse t/o iwas involved in was BLO , now NPE.[ IN TO BLO AT5 AND NPE IS NOW 12,SIGNS ARE GOOD for GTL.

Morning mbugger

Glad to see you had a good result with the last reverse t/o. Let us hope that the same will happen here. I've been in this stock since August '03 (at just below 11p) and have topped up a few times on weakening sp. I now only need an sp of 4p to break even. But this was never my intention. I still believe that this stock has great upside potential - but always seems to be floundering due to lack of any real news. For example, when is the methanol project in Australia going to come to fruition? Have they actually started building anything yet? At the moment, there business plan seems to be negotiating new contracts for methanol plant production based on their model, but never any word about these plants being physically realised.

Fingers crossed for good news in the upcomming days. LOL. :-)

Good evening Starfrog, around 10.5 over ayear ago, thoght GTL was hibernating for areason,also asyou said in March TOP BOSS bought 250000 shares.So last week i decided to calculate anew b/e SP target when i rang for 1.75 was told gone up 0.5 last friday morning , bought at 2.26, then tuesday decided to top up at 2.85 , then 1 hour later dealing suspended.if director buys 250000 in a company like gtl who is apparenly asleep/ dead ,sp down to 1.75 from 11 over many monthes,then jump in.

Is it trading again?

Sampson - Yes, it is trading again, though the price has dropped off somewhat from the closing value before suspension. There is also some news. The final results are also published today and don't (IMHO) sound too great for the short term investor. Of primary note is that the Australian methonal plant has still not advanced any further:

"The Australian methanol project remained stalled by the current reticence of gas
field owners to commit to the necessary long term contracts. The project is on
hold pending negotiation of a suitable gas supply contract and more favourable
exchange rates."

More interesting (and could be good for the medium to longer term investor) is the announcement of the acquisition of the controlling interest in Illinois River Energy. This, however, requires funding and hence the announcement today of a placing and open offer:

"GTL Resources plc (AIM:GTL), a project development company focused on projects
relating to alternative fuels, today announces the acquisition of a controlling
interest in Illinois River Energy, LCC ('IRE'). GTL has entered into an
agreement pursuant to which it has conditionally agreed to subscribe for a
controlling interest of approximately 90% of IRE. IRE will construct, own and
operate an ethanol plant at Rochelle, Illinois, USA. The plant will have an
estimated capacity of 50 million gallons per year and is likely to be completed
in 2006.

GTL will acquire the proposed interest in IRE through its wholly owned
subsidiary, GTL USA. The transaction and wider construction project is estimated
at $79 million and will be financed by a combination of debt and equity. The
equity of approximately $32 million will be provided by GTL USA.

1,424,694,230 Placing Shares and 495,305,770 Open Offer Shares have been placed
at a price of 1.25p per Ordinary Share. Following the admission of the existing
and new Ordinary Shares, GTL will have a market capitalisation of 28.4m.

The Acquisition is classified as a 'reverse takeover' under the AIM Rules by
virtue of the size of the transaction. As such it is subject to the approval of
Shareholders which is to be sought at an Extraordinary General Meeting."


Note the placing price of 1.25p - this probably explains the drop in the current sp. Haven't had time to read through all the announcement yet (and decipher exactly what is going on) so I am not sure if there is any favourable exchange mechanism for our existing shares.

Thanks for that very interesting :-)
Seems to be doing ok this morning, up 57% percent this morning.
Of course it could dip but at least people are still interested in buying it.

Sampson - I had a chance to read through the acquisition/placing proposal last night and I am not as downbeat about it as I was yesterday when they returned from suspension. In a nutshell, the company appears to be re-focusing their strategic objectives (note - not changing them). The projects involving the construction of methanol plants (Australia in particular) are taking too long to come to fruition. Hence, GTL are turning their attention to ethanol plants which are quicker to construct and should be cash generative in a quicker period of time. The bit that I liked most from their proposal document is:

"The Company intends to investigate opportunities to expand further within the
ethanol industry in the United States or other suitable markets by selective
acquisition of low cost production facilities. The Directors believe the Company
can act as a potential consolidator of ethanol plants in a particularly
fragmented market."

This could work out as a very good strategy. Everybody is aware of the increasing cost of crude oil and ever increasing environmental legislation, both factors which will help push the market for alternative energy sources. Getting in right at the begining and becoming the big player would appear to be a prudent move. (IMHO)

As for us existing investors, the terms of the placing permit existing shareholders on the register prior to August 3rd to buy 5 new shares at a price of 1.25p for every 4 existing shares already held. The new shares will rank equally alongside the existing shares. This is not a discount. It's simply an invitation to increase your stock by 125% at a fixed cost.

As to the increase in the sp today and the number of buys going through, this is encouraging. Consider this. All the buys today (and yesterday, and the next few days) will not qualify for the 1.25p purchase price in the placing offer (shares bought after 3 August). The price these shares are being bought at is also well over the 1.25p level. So who is buying these shares and why? In my opinion, this probably is not the action of existing large institutional investors (why buy at 2p+ when you can get them at 1.25p later?). So my guess is that these are purchases by new investors and institutions. But they are buying shares in a company who are proposing to increase the authorised share capital by nearly 650% which of course should dilute the share price. Why would they do this? Obviously these investors have looked at the business plan of GTL and decided that this company is a good investment in the middle to long term. I would agree with that.

On a personal note, I intend to take up my full allowance of new shares.