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).

Lol....:O) Rumour on another site that Watkin is going to put a takeover bid in for the company...he resigned today.....so who knows.....

Since he left the management have been useless.......stranger things have happened...

D1 Oils says founder Karl Watkin quits as director UPDATE - AFX
(Adds Watkin statement, background)

LONDON (Thomson Financial) - Karl Watkin, founder and former chairman of D1 Oils PLC, has resigned from his role as non-executive director, days after the biodiesel producer announced it is downsizing its refining business in the UK because of unfair competition from heavily subsidised US biodiesel imports.

In a statement, Watkin said he is quitting out of frustration over the investment community's inability to differentiate D1's strategy from that of the suppliers of palm, soya and rapeseed 'whose biodiesel products have been well documented as being environmentally unsustainable.'

'I am particularly disheartened by the plethora of so-called experts on climate change who fail to distinguish between jatropha and other non-sustainable biodiesel feedstocks,' said Watkin, who gave up his role as chairman in 2007.

'This lack of differentiation, combined with the London Stock Exchange's failure to address both the liquidity problems of AIM and the impact of shorting of illiquid stocks, have conspired to erode the value of D1,' he said.

Lord Oxburgh, former chairman of Shell Transport and Trading PLC, became chairman of D1 Oils in January 2007.

Oxburgh commended Watkin's 'major and critical contribution' to D1 Oils.

'His early conclusion that supplies of traditional food oils and grains could not support the development of the biofuels industry, and that alternative energy crops like jatropha would be important sources of green fuel was truly farsighted,' he said.

Watkin developed a strategy to plant jatropha, an inedible oilseed bearing tree, as an alternative feedstock for the production of biodiesel seven years ago.

On Friday, D1 Oils said it is reviewing its refining and trading operations in Middlesbrough and Bromborough in the context of imports of heavily subsidised biodiesel from the US under the so-called B99 programme. Consultations with staff are to begin immediately, it said.

The move will involve job losses, and news reports claim that, as a result, over one-third of the staff in those facilities will go. The news sent the company's share price lower by over 37 pct on Friday.

At 2.33 pm, D1 Oil shares were down over 12 pct at 54-1/4 pence.

Watkins stressed these actions were part of the group's efforts to 'proactively' manage its refining assets, which now represents a small part of the overall business.

'The resulting 40 pct fall in the company's share price, particularly when set against the recent share fall, was overdone in relation to the news,' he pointed out.

The US government is promoting the production and use of biodiesel for transport under the B99 scheme, in which producers could claim a subsidy of up to 1 usd per gallon if they blend 99 pct biodiesel with 1 pct mineral diesel.

Watkin last year had already complained the influx of the US biodiesel is putting the entire EU green fuel industry at risk.

D1 Oils teamed up with UK oil giant BP PLC for a 160 mln usd biodiesel project that uses jatropha as a feedstock. The joint venture, called D1-BP Fuel Crops Ltd, intends to plant 1.0 mln hectares of jatropha in its first four years.

In separate news, yesterday, the Sunday Telegraph reported that the company will look to raise up to 30 mln stg in fresh capital.

monicca.egoy@thomson.com

LONDON, March 11 (Reuters) - Karl Watkin, the founder of British biofuels firm D1 Oils (DOO.L: Quote, Profile, Research) is preparing a bid to buy out the company, a source with direct knowledge of the plans said on Tuesday, taking advantage of a record-low share price and a global commodity boom.

Watkin on Monday quit as executive director of D1, with local media saying he was disheartened by the investment community not making a distinction between D1's crop, jatropha, and other less environmentally sustainable biodiesel feedstocks.

"The company is massively undervalued," the source said, adding that a bid was currently being prepared and a mixture of debt and equity was the preferred mode of funding.

He'll "borrow the money and do it. I would have thought it'd happen pretty quickly."

Shares of D1 have tumbled on concern it is unable to compete with subsidised U.S. imports of raw materials, and the selling accelerated after it said last Friday it may cut jobs at its refineries in northern England as a result.

D1 shares were down 12 percent to 51 pence at 1033 GMT, valuing the entire firm at about 31 million pounds ($62.17 million). (Reporting by Hsu Chuang Khoo; Editing by Quentin Bryar)

arguably a good buy for Mr Watkin, but that does not mean any windfall for current holders, even if they jump in today .... he will also need to borrow or dilute by a further 30m for extra captal

UBS AG has further lower their stake in DOO today to 5,428,796 shares.

UBS AG has further lower their stake in DOO today to 5,428,796 shares.

Last night documentary on biofuels did not instill confidence...that is why DOO and GTL are reeling today.

Rns.....looks like Watkin will bid for company...rumours are 75-100p....

Barefoot - shame on you for blatant distortion of the facts .... do you work for the Sun or similar?

what the RNS actually says is below .....

Karl Watkin said he is at the very early stages of evaluating options regarding his shareholding, including increasing or decreasing it, or making an offer for the company.

and even if he does bid, why on earth should he pay 75/100p?

Well sorry cynic but thats the opinion of a lot of others and what ive heard on the grapevine.....when he stood down the price was round about 50p so 75p was the price going round at a 50% premium.....just passing on whats been said elsewhere...as usual we will have to wait and see......

and I have to say shame on all the doom and gloom merchants who pass around pathetic rumours about companies such as Doo that are completely unfounded....just so they can short,,,we shall see who is right at the end of the day......:O)

I like the way the FSA step in when its a bank in the limelight!!!! they want to do their job properly and look at the market abuse of most Aim companies!!!!!

you will note that the RNS patently does NOT say that Watkin is likely to make an offer.

i also suspect that your jibe was an ill-aimed swipe at me .... if so, another blatant distortion of the truth, as for a very long time i championed DOO and have never shorted it, though i sure wish i had

Cynic there's still time!

It wasnt aimed at you .....but i wasnt Blatently doing anything......unlike others,,,,i was just passing on what was said elsewhere......and someone who appears to know him stated on another thread that he was...as i said we shall see...they also said sooner rather than later....

anyway the market seems to believe it....up nearly 10p on a bad day....

anyway the market seems to believe it....up nearly 10p on a bad day....

Looks like the end of the road Watkin at his last declaration held only 4% of the shares UBS has been reducing their holding and BP dont seem interested.
Another triumph for EK!!

Lol...whatever.......