Gas to Liquid
Commencement of Operations Started 28/12/2006
The strategy of GTL Resources plc is to produce liquids such as methanol and ethanol from stranded gas, corn and other feedstocks with quality counterparties. GTL manages all aspects of a project: finance, feedstock supply, production and marketing.

In line with its strategy of seeking to develop and exploit markets for alternative fuels, GTL has, since the beginning of 2001, concentrated primarily upon developing methanol projects, principally in Australia, and, more recently, ethanol project work. The Board has recognised the strategic benefits of acquiring a cash generative asset on a shorter time scale than the typical methanol construction time of three years. In furtherance of this strategy, on 6 September 2005 GTL Resources acquired a controlling interest in Illinois River Energy (IRE) to build an ethanol plant at Rochelle, Illinois, through its wholly owned subsidiary, GTL USA, which has been established for the purpose of investing in ethanol projects in the USA. GTL USA has invested in IRE by way of a subscription for units of IRE pursuant to the Unit Purchase Agreement.

This project has the advantage that the Plant is expected to produce revenues on a shorter time scale and at a significantly lower capital cost than the methanol plant in Australia.

The Company intends to further expand within the ethanol industry in the United States or other suitable markets by selective acquisition of low cost production facilities. The Company sees itself as a potential consolidator of ethanol plants in a particularly fragmented market.

FT Tip
GTL Resources, an Aim-listed company. It raised money to build an ethanol plant in the US. Raw materials costs have risen but the price of ethanol has gone through the roof. The earnings potential should be spectacular.

New Plant

Construction started at Rochelle, Illinois site in September and production from the 50 million gallon per annum ethanol plant is expected to commence in the fourth quarter of 2006. Following unusually mild weather in Illinois the project has progressed well and is on schedule and on budget. Whilst the Companys main efforts centre on the successful delivery of the US ethanol project at Rochelle, the potential expansion of that site to 100 million gallons is being investigated. In addition and consistent
with GTLs stated strategy for the expansion of its interests in the ethanol industry, other ethanol opportunities have also been identified and will be analysed. Pictures Of The Site Under Construction March 27, 2006 http://www.illinoisriverenergy.com/html/construction.html


Arden
http://gtlresources.com/documents/ArdenAnalystResearchNote.pdf
http://www.gtlresources.com/documents/ArdenAnalystResearchNote.pdf
BBC News Item On Ethanol
http://news.bbc.co.uk/nolavconsole/ukfs_news/hi/newsid_4940000/newsid_4948400/bb_wm_4948456.stm

Ethanol Priceshttp://ethanolmarket.aghost.net/
Ethanol as a Transportation Fuel
http://energy.ca.gov/afvs/vehicle_fact_sheets/ethanol.html

Annual report for 2006
http://www.gtlresources.com/documents/GTLAnnualReport2006_001.pdf
Pics from Ethanol Producer Magazine of GTL's plant.
http://ethanolproducer.com/plant-images.jsp?plant_id=302&image_id=59
Commencement of Operations Started 28/12/2006
http://www.gtlresources.com/
Economics of Ethanol
http://www.ces.purdue.edu/extmedia/ID/ID-339.pdf
2 July 2007 GTL Resources FY pretax loss narrows, plans 13 mln stg placing to fund expansion
http://moneyam.uk-wire.com/cgi-bin/articles/200707020705014067Z.html
GTL Web Site
http://www.gtlresources.com/

Even as we were chatting they had started, but much happier now!

nice to be wrong once in a while .... lol ..... even though driver's surge is something short of a ripple!

cynic
Early days, the rns was short and sweet; they could also have said we have started to make loads of money.

Still early my hoped for projection would be 2.50p by close of market tommorow. Only IMO humble opinion of course!
Now it needs new money not previously in GTL!

Here's the full article, brief as it is.


GTL Resources PLC - Commencement of Operations

RNS Number:6892O
GTL Resources PLC
28 December 2006


For Immediate Release 28 December 2006

GTL Resources plc
('GTL' or the 'Company')


GTL Resources plc (AIM:GTL), the project development company focused on Ethanol
production in the US, is pleased to announce that its ethanol plant at Rochelle
Illinois USA commenced operations on 27th December 2006.

A nice start to the morning, anyway:

GTL Bid: 195p Offer: 205p Change: 15 Only about 37k traded; can't wait for the volume buyers :o)

would be nice if laurie's prediction came through .... at least i would be back in the money, though my holding is quite small.

I need around 2.30p before I break even as well.

If and when the plant passes acceptance testing (end Jan?), we ought to get confirmation of production rates and hopefully a corresponding waking-up of the market.

It's been a soggy three months for ethanol producers - at least, RVA is down from 275 to around 204; hopefully once some figures start trickling out of GTL we will be rightfully put ahead of RVA.

Nice to start the post-Christmas period with a rise - here's to much, much more in 2007.

232p puts me in the black :o)

after my top up of 195 this morning about 231 puts me in the black, maybe 232 with comm.

For what it is worth - this on t1ps.com today by Tom W

GTL - Now a producer/stance upgrade
GTL Resources (GTL) today announced that its ethanol plant at Rochelle Illinois commenced production yesterday. I need a longer post Christmas chat with Peter Middleton but it seems clear to me that this plant could easily be chucking off free operational cashflow of 10 million plus per annum within a year or so. At 200p (remember there was a one for one hundred share consolidation) the company is valued at around 45 million. As such - even without any upside from deals in Oman and elsewhere which may still happen - the shares are cheap and, now that the company is operating profitably and generating cash, I am moving my stance from "speculative buy" up to "buy."

A good write up shame most of the others are shut down to the New Year.
The Offer price needs to breech the 2.05p and then should continue.

12 bids at 2.05 or more and for largish amounts but mm's were not budging!

Well thats it no more speculation as to if or when the plant is going to open there may be a few teething problems other than that GTL are now producing revenue with that I expect to see a rising sp in 07 and beyond.

looking good!

What's the reference to Oman all about?

any one knows how long it takes to make ethanol from the corn. so we know when the first ethanol is due. and the amount at each time its due.thanks.

dave7010
Its properly continuous when its up and running, just like a glass factory.

so if its 50 mil galons a year,and say it takes 2 months for the first ethanol to be made, 50 mil into 6 should work out at, just over 8 mil galons every 2 months, thats if it takes 2 months to make. so wot im saying is when will the first lot of ethanol be ready to put on the market. do they make the first 50 mill then sell it. or do they sell the first batch and so on.thanks driver.

"We look forward to production commencing and anticipate that our plant's
first quarter of operations in 2007 will be profitable," said chairman Peter
Middleton.

The 80 mln usd project remained within budget despite the "significant"
inflationary pressure within the industry, said GTL

The plant is expected to reach its nameplate capacity in January next year,
it said, adding the group has already filed applications for permits to double
the facility's capacity.