Texaco dialogue continuing.
RNTK feels positive about it. It can be a month away or tomorrow.
RNTK was offerd an immediate signing by an overseas large oil co.
So far Payne Webber - 3 mil
Morgan - 1 mil
Schwab - 1 mil
Donald - 587k
A.G. Edwards - 200 k
Everen - 370 k
SOuthWest - 1 mil
SB Inc - 443 k
Dean Whitter - 210 k
I saw these with my own eyes.
All together about 100 MMs
ONGC / DP site the foundation work is being done as we speak. The RNTK plant schedule is 18 mos. Whole new township is being built to accommodate this new plant ., i.e. housing, mess hall, etc.
Chicago Exchange is asking RNTK to trade there as well. RNTK will meet with them to explore. Some of the Chicago board cos are; NEM, USB, MSB, APA, PLA etc.
The diffrence between Cobalt and Iron
Natural gas;
cobalt ------------ Captures 90 %
Iron ------------ '' 80 % by applying CO2 ----- up to 90%
Bottom including syngas
cobalt ------------ 50 - 70 Tolerence for sulpher -- 0
Iron ------------ 90 % Sulphur no problem
As for Michael Dapperts question the condensate is already a liquid form therefor does not pertain to RNTK.
Understand the condensate is very expensive and at 30 some bucks a bbl.
Ron VP is a inhouse lawyer in daily dialogue with Texaco.
Sam CFO is ex PZL Canada, Puro , CEO. He did Top Source from .25 cents to 8 dollars before joining RNTK.
USD 700,000 total debt. 300k to recent acquisition, 400k to former investors.
Expects to be profitable end 98
300,000 in cash now.
No dillution planned now.
SLHOs not gonna get a single drop for next 3 years, RNTK will have the plant running in 18 mos.
Why is every one jumping on the SLHO ? The above reason 90% recevery on natural gas, hence Dept of Energy pumping SKHO for Prudhoe BAy-Arco.
RNTK feels for min of 5 mill USD they can improve natural gas capture to 90 % as well, whereelse for bottom/syngas for SLHO to capture RNTKs 90% infrastructure will cost 10x more than what will cost RNTK for CO2 unit.
Not a direct competition with SLHO in terms of vol, market and engineering criteria so no concern for RNTK.
RNTK feels if Texaco deal fails for any reason, they have several back up partners. Some names were mentioned but I am not at liberty to discuss it here.
RNTK financing partner Rex feels if Texaco deal is announced he expects major up lift in the share price.
So there you are. Do your own DD and caveat emptor.
For me I like Dennis, Mark and those involved.
I asked why the sell off. Response is that hedge funds and traders. I will leave it to your imagination.
My take ? a support at $1 with scare shake at 7/8 trade it to 3/8 range both long and short of it. Momentum and day traders pretty much left this now.
We are not going any where until Texaco news comes.
Joe TPRO
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