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: Howard Williams who wrote (10888)	10/13/1998 7:42:00 AM
From: Emec	Read Replies (3) of 14347

Just listened to interview. In summary, Yak said we are all going to be rich. But seriously, nothing we haven't heard before. Some brief points: Texaco has 20% of gasification technology worldwide RNTK's technology can make the cleanest diesel possible. Apporximately 10-20% of a barrel is considered bottoms When asked why the contract negotiations took so long, Yak responded that he would like to defer to TX on that. He added that TX had a lot of other things on their plate including their merger, that there was never any contractual disputes and that the deal is very complicated. TX has exclusive on solids and that they will share the revenue (does this mean 50-50?) When asked when TX will make a significant impact on revenues of RNTK Yak responded when plants are licensed. Prior to this time he can't discuss terms but they are good and "to our benefit" (I take that statement to be pretty conclusive that RNTK is receiving cash from TX NOW) TX has the right and will likely sublicense RNTK's technology to others, outside India. When asked how long it would take to put a plant with RNTK's technology into operation, he said relatively rapidly if put into an existing plant. If done from the ground up, probably 18-24 months. (My understanding is that most will be put into existing plants). When asked when a prospective investor can expect to see revenue from TX he responded that he prefers not to quantify with forward statements-prefers not to venture a guess. My impression of the interview is that not only are terms not set forth in the agreement but that TX and RNTK have decided to keep all details of their agreement confidential period. My opinion based on the interview (as if anyone cares), RNTK received cash up front for the exclusive license and will likely continue to receive cash. My guess is that plants will be operational in 1999 and spit off a very nice revenue stream for RNTK. Keep in mind the beauty of royalties as opposed to other types of revenue which have related costs. Royalties go right to the bottom line

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