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).

There are two excellent free resources below, for those who want to get a feel for the ULSD price.

Go to http://www.nymexeurope.co.uk/
Choose Markets -> NWE Gasoil ; Agree to the disclaimer;
You can then choose current session overview [Delayed 2 hours last time I checked] or previous session overview.

On checking, it is $501/t for Jan06 delivery, down almost $14/t, explaining the averse share price movements of both BFC and DOO.

The other method of checking, where you will get more historic ULSD data is the public oil market report of the International Energy Agency.
Go to http://omrpublic.iea.org/. Choose prices then Physical Product Prices by Refining Centre -> Northwest Europe.
This will give a pdf of price graph in $/bl for low-sulphur Diesel delivered to NW Europe. Unfortunately they are only updated monthly by the IEA. To get the figures from the most recent report, go back to the homepage and download the 'Prices' section of the most recent report.
To convert $/bl to $/t simply multiply by 7.5x

The last data here, end of October is $72.02/bl for low-sulfur diesel which equates to $540/t

Hope this helps those of you trying to form a view,

DOO is slipping fast to 157p today

The Times January 06, 2006

D1 Oils

SHARES in D1 Oils, which is targeting the fledgeling biodiesel market, received a boost yesterday from an erroneous report from India that it was planning to invest 25 billion rupees (318 million) over the next five years to fast track its ambitions.

In truth, the scale of D1 Oilss investment is likely to be no more than 10 million, but the report boosted the companys shares 4p to 168p.

Last year was tough for the company, despite the potential for biodiesels at a time of increased pressure to reduce carbon emissions. The EU Biofuels Directive demands that biofuels should account for at least 5.75 per cent of fuel used in member states by 2010.

D1 Oils strategy is based on planting hectares of jatropha, a shrub whose nut contains oil. But plantings have been delayed. The company raised 25.8 million at 265p last June, a substantial discount to its share price at the time, highlighting how far D1 Oils rating has fallen since.

The biofuel revolution will not succeed overnight. The brave, however, will want to start converting to D1 Oils now.

DOO IS SHOOTING UP TODAY TO 216P NOW...is there some good news coming up?

Large x trade on D1 Oils ... went through 2/2/06 at 10:48. Very large indeed, 800,000 shares thats 2.58%. lets see what happens... think good news will be on the way

TAKE NOTE OF THE ABOVE POST, could be a clue to some god news. look at the thread in the Trader Room called "Penny share cross trades (x trades)"... see if it is right

these shares are lagging behind Biofues's somewhat, they have ground to catch up on

D1 Oils has to pass 300p and then watch it zoom to 350 in no time. You just have to look at the notifiable interest and that will tell you the story. As an example, UBS increased their interest from 5.02% to 6.06% in 3 days. You have to ask why? I would follow the big boys and buy in this company. I am a share holder in this company. Please do your own research before investing.
Any comments?

I totally agree with you, think they will catch up with Biofues recent gain as i keep on saying there are some real big buys going on, have a good feeling that DOO is a dormant giant! I am a share holder in this company, please do your own research before investing

I think the MM's are manipulating the SP. Just look at the Bid/Offer price!! MM wants you to sell and hence the mark down.

It appears that "Shorters" were at play yesterday. IMHO I think they will get their fingers burned. D1 has been going up for a while and hence the shorters moved in but they will get a shock when Sp moves north!!!

Does anyone think that being based in india might be a great strength? i.e. strong economical growth... strong demand for energy

http://www.lemminginvestor.com/Ethonalboom170206.html

http://www.lemminginvestor.com/NewsHubs.html

Took a big fall yesterday... thanks for links elrico, interesting reads... Seems strange that this shares are not very responsive to the price of oil, surely as oil goes up biofuel becomes relativerly cheaper...

.

Why is there a huge drop today at the last minute?

dO NOT KNOW WHY... HOPE NO BAD NEWS ON THE WAY

Big rise today... hope this could be the start of a recovery from the recent fall

Hopefully start of the rebound....

I feel that DOO has a lot going for it compared to Biofuels...
a) Management seem to meet all there targets on time, feel that there is much more honesty there (they do not try to manipulate news, hold back info etc)
b) The D1 20 unit is like a mini refinery, each one is capable of producing 8000 tonnes of fuel a year
c) Plans to have 6 D1 20s in the UK by the end of 2006... total production of 72,000 tonnes a year. The new plant Biofues has built will be able to produce 250,000 tonnes when at full capacity, this may take some time to achieve if the delays so far are anything to go by
d) Smaller units can be deployed around the country to greatly reduce transport costs
e) Units can easily be shipped arround the world, and be used in remote locations, provided power, water and veg oil are supplied. These units will run on a generator.
f) A lot of investment in India, crops are being planted very fast because of favorable monsoon conditions, they have found a plant that produces good oil but will grow in arid conditions, and Indias demand for fuel is very high. still developing India will be able to emprace this new technology
I would appreciate any feed back on these coments