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).

truly horrid performance

DOO showing weakness again. I am tempted to short it.

Are you still hanging to DOO, cynic or is this a buying opportunity?

i am a damn fool as i still hold ..... not entirely sure why the great fall from favour, but could not possibly recommend anyone to buy, though in the long run, this could prove to be an ace time to invest

I really don't know as this could be an opportunity or it could be like GTL or RVA.

This has truly turned into a shocking stock, the only glimmer of hope I could offer holders is that it about to hit its all time low in the region of 110p, fails there and gawd knows where it will find support. I wouldn't be surprised to see it shorted to 50p,

The news was broadly what we expected. Tough trading conditions, planting operations in line and its Boromough facility closing in on completion.
I think D1 are one of the strongest companies in the Biodiesel market but over the short term im not sure whether the general sentiment towards the market will continue to drive the shares down or whether D1 will be seen as the company that can potentially benefit from high feedstock prices through producing lower cost Biodesel with its Jatropha plants.
medium term this will almost certainly be the case as planting in 06 and 07 will begin to mature and produce oil throughout late 08 and 09. I'm tempted to top up but its very hard to judge where the shares will head from here, there doesnt appear to be any news on the horizon and it worries me when they refer to the D1-BP shareholders as a separate entity to D1.

This bodes well for D1 though;

As a result of these issues, Johns said the biofuels industry in the US and Europe will go through a period of consolidation.

'It is low cost and integrated producers, which have control over significant parts of the supply chain, as well as those with significant financial backing who will most likely weather the current downturn,' he said.

Interesting article in The Times today, including a mention of DOO:
Times article: Industry seeks Commission inquiry into alleged biofuel dumping by US

The 110p support have been broken today. Look out for a slide now. RVA also been suspended today. Alternatives are not looking good now.

i sold a few a lot higher than this, but still at a loss i think ...... it looks truly horrid, though in DOO's favour there is at least a chance that BP will take them out, given that they are already in a JV together

Nothing looks safe nowadays.

certainly not banks or houses - lol!

Who needs safe investing is about taking calculated risk!!

i calculate that buying today was all risk!

Buying at any time is about taking risk as we dont know what tomorrow may bring.

ok .... my guess is a rally on Dow this evening, but i shan't be putting money on it

Nor will I! I don't think much will change sentiment before banks report in February. After it becomes apparent that sub prime is yesterdays issue and life still goes on .Buy Tesco!!

DOO looking very unstable.

Amazing to think that DOO once hit the giddy heights of 550p!!
Slowly trudging down towards gawd knows where now. Anyone buying this stock now is taking a pure gamble. For once I agree with the BB ambulance chaser - Hlyeo - must be Xmas or summat :)