Rentech(RTK) - gas-to-liquids and cleaner fuel Message Board

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Microcap & Penny Stocks : Rentech(RTK) - gas-to-liquids and cleaner fuel

RTK 0.200

+5.3%

Oct 13 5:00 PM EST

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To: Andrew H who wrote (1344)	2/21/1998 5:31:00 PM
From: Zeev Hed	Read Replies (3) of 14347

Andrew, I like your quote:" ... 5500 barrels per day of valuable liquid hydrocarbons. Assuming a $20 per barrel value for the hydrocarbon products, the value of the refinery's output could increase by approximately $40 million per year not including the savings in electrical costs achieved by internal generation in lieu of outside purchase.". One little problem, however, I am told that the breakeven for typical GTL plants is around $18 to $20/barrel, and while the additional sales (at 360 days per year) are indeed some $40 MM, these are far from being the "profits, and with oil trading in the $14/$16 range, T may wait a little longer to see where oil prices are going long term. Some people in the industry when planning a new project assume a minimum of $16/barrel, and few have now moved to $14/barrel. Do we know how much more competitive is the RNTK process relative to the mature Co and other transition metal oxide based catalyst? In order to get a handle on how good RNTK's process is, it would be useful to find what portion of the total costs of GTL is in the catalysis columns and how much in the compression, separation and recycling parts of the process. Anyone has an idea? Another measure would be the plant in India, anyone knows what the conversion capacity of that plant is and what was the cost of capital equipment? We know the license fee received (about $240,000, so we could expand this to other potential plants). Following these trails might help us put a figure on the value of the technology and balance these against the risks of the floorless. Zeev

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