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).

i am currently out of this stock, but confess i still like it ...... the sector is pretty good - i.e. alternative fuel ..... in particular, i like DOO's method of production in that in uses non-foodstock - i.e. jatophra palm oil as opposed to maize - and is thus not subject to the vagaries of the futures markets.

the share worries me at the monent inasmuch as it has fallen pretty much in a straight line from about 200, but without any obvious reason or announcement .... clearly hyleo has no logic behind his prediction other than, presumably, gut feel .... that does not mean to say that he will be worng.

Surely without Company specific news you would expect the share price to rise and fall with the oil price, and at the moment the oil price is still falling. If and when the oil price recovers the SP will recover imo.

the worry is that there is some as yet undisclosed bad news

Have to say i'm considering getting back in

I think the S.P. has stabilised - I expect many disagree so no need to say
Completed the acquistion of the new plant
The surge into renewables is literally HUGE now, demand for D1's production units and output will reflect this - D1 will become an unstoppable dynasty in the renewable sector
Cynic stated that they do not / will not suffer from wildly changing foodstock prices
More news is expected throuhgout this year
New chairman, more experienced at dealing with the market
Rock bottom S.P., i would have never expected to buy D1 at 146.(Havent as of yet got the SP you can buy at today though)
Although unlikely - possible snapping up of BFC's plant when it goes on the cheap after they liquidate, potential takeover by one of the big 2. (Shell, BP)

IMO

In at 146.99

you may be right .... am currently positively undecided

I'm almost certain now that it is simply the Oil price that is dragging D1 lower. Timing for when the price when down on the 1 Day chart is much like that of Crude - Sadusi just said they wont cut or have an emergency meeting with OPEC.

you are probably right "G D P ". Lord Oxburgh article (page 5 business section of independant on sunday) puts economic production of biofuels at around $60 a barrel.

$60 is too high a price for a barrel of biofuels...crude is cheaper, there will be no demand for biofuels then.

demand will be partly driven by legislation

As cynic says demand will be driven through strong legislation - Oil is unlikely to remain this low for an extended time frame and companies are already looking, despite being more expensive, for biofuels to run delivery vans etc. I think you may be missing the envrionmental point.
I think DOO produce it for a lower cost anyway and we will find out in due course.

According to some on advfn there were 2 big sellers who needed to sell at any price as they needed money urgently.....now there is meant to be a buyer for 500,000...they got 350,000 yesterday and the remainder today.....personally i dont understand where the 1.5.m shares that were sold earlier went to....

does one believe advfn? ..... after all, there looks to have been only 265k traded all day

It's just some who like to pretend they have inside information on all the sharedealing activities just to spark stupid people to buy or sell (None of this is pointed at you Barefoot by the way).
Also Barefoot i remeber you saying you have been invested in D1 since the start, must be frustrating to see them at 140 now!!

Just a bit GD...have traded a bit through the ups and downs but decided to keep what i have left long....had a few sbs on it recently that have been wiped out.....cant believe the sp is where its at.....whenever they bring out news the sp just seems to go down...sure one day it will turn...just hope its sooner rather than later...

when yoo work it out though..the market capital at present is 84m...equivalent to approx a sp of 2.50 before the placing...yes they have nearly 50m more in the bank...but not bad considering the price of oil and feedstocks and the devasting effect it has had on the sp of other biodiesel companies.....if they could pull off the jv then i would be more than happy....

Looks like the S.P's could have bottomed - good buying opportunity IMO.

Let's hope so

Its maintained a small range of around 10p either side of todays price for nearly a month now - Impressive for DOO.
I think thatnews could help lift it above this and higher.