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/

There is a typo in their statement:

It is proposed that every 100 Ordinary Shares of 0.01p each in the Company should be consolidated into 1 new ordinary share of 1.00

They do, of course, mean every existing share of 0.01 (1p).

Not sure that I like consolidations, have always tended to loose out in the past.

The reason is usually to attract the bigger institutional investors who tend to shy away from 'penny' shares (I know that there are big investors in GTL already before anybody tells me) and also to help narrow the bid/offer spread. Perhaps it is a good sign. Maybe they are expecting more volatility in the sp as they approach production and want a higher nominal share price to reflect this + the pyschological aspect of having an sp in the 's gives credability.

I am surprised at the 100 would consider 10 would be more realistic so will wait and see.
I am confident in this company so have little choice if it is passed.

I'm a newbie to the investing game and was interested in investing in GTL. If I was to buy 100,000 shares and with the consolidation coming into affect would there be any point in investing as what would happen to my holding??

I would appreciate any feedback. Thanks.

I work at a stockbroker, so official docs come through me first ;)

and nothing would happen to your holding in terms of value.

Theoretically your holding would decrease in number of shares by a factor of 100 and at the same time the value of the stock should rise by 100, so shares would be worth 2.25 each insted of 2.25 pence and you would have 1,000 shares instead of 100,000

A share consolidation seems to have worked for COH, in that it didn't have a detrimental effect at all.

ALSO look at the share consolidation @ isys,its done that good!

this is getting a bit boring.

I agree with you there!

The more interesting bits at the AGM will be resolutions 7 & 8.

40% of new shares can be issued and they don't have to offer them to existing shareholders (ie us!) if I read it correct.

So our holdings could be diluted while the institutions will pick up cheap shares? Cynic? Moi?

Bolshi - The resolutions to allot shares and disapply pre-emption rights are becoming more of a standard thing these days with a lot of companies and is nearly always put forward as a resolution at AGMs. The reason the company asks for us lowly shareholders to agree to this, is because if they are ever in a position where they need a quick injection of capital, they can sell off a bunch of shares without having to distribute them evenly across the shareholder base (e.g. through a rights issue) - which takes time and cost.

I wouldn't worry if I were you. They probably wont be selling off any shares. As I said, its becomming standard practice to ask shareholders permission to do this as a precautionary measure, and if you look back, you will find that they have done this nearly every year.

All my humble opinion, of course.

1 million buy so at least someone else has faith.
Do we know an actual planned start up date other than December? They were two weeks ahead of schedule.

Starfrog. Thx for that.
My mind was at rest and then the price went down again! :-(

yes it likes to do that

The Times: Smaller Stock To Watch: Ensus - Future BioEthanol Producer in the UK - due to Float on AIM


Smaller stock to watch


Ensus, a green fuels firm that plans to build Britains first bioethanol plant, is to raise up to 90 million by floating in London. The company, which will publish details of the float within a week, has plans to build a plant on Teesside capable of producing 400 million litres of bioethanol a year. Shell Trading has signed a ten-year deal with the company to buy all of the plants production. It is understood that Ensus has raised 150 million in debt and will look to raise another
80 million to 90 million through a listing on the Alternative Investment Market. The chairman is Sir Robert Margetts, who is also chairman of Legal & General and a former chairman of BOC, the industrial gases giant. He said: We plan to be a leading player in the biofuels sector in Europe, not just the UK. The chief executive is Alwyn Hughes, a former ICI executive. Bioethanol is a type of alcohol made by fermenting crops such as sugar cane, corn and wheat.



With biofuels such as biodiesel, it is seen as a partial solution to climate change because it reduces emissions of damaging greenhouse gases.


Watch this space! DYOR

i don't get the watch this space, does it mean that you think Ensus will be tackling GTL or that you ll be posting more?
Sounds like a good venture but everything is already certain with them, little risk, therefore i think plays like GTL would be better.

Am I right in saying that is approx 88m Imp galls? Not far off the intended capacity of GTL. Do we produce enough corn or beet or are imports the answer?

I only mean that when and if Ensus floats on AIM we'll know more and can then assess the SP Re: Value and how it compares to GTL. I hold GTL and agree it may have greater potential, it is a question of whether Ensus is also a Green Sector play. Let's see the details of the Float and take a view, merely only trying to let people be aware of a UK based, UK Production Ethanol Company that they could invest in.

US will also have different political and economic rules and lobbies ..... imo, and i do hold GTL, EU is more likley to enforce usage of alternative fuels than US ...... whether or not Ensus will be overpriced on today's "do good" wave is another matter

+ GTL is ready now Ensus could use the firm that did Wembley they should be free!

GTL will not be in competition with Ensus or any other bio fuel producer there is plenty of room for all of them, there also isn't any problem with future share consolidation, I have held Dana for years they did a 100-1 and now look at them over 13 and I still hold, I can see GTL going the same way this is a long term hold sit back and be patient this share is a multi bagger consolidation or not.