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Microcap & Penny Stocks : Rentech(RTK) - gas-to-liquids and cleaner fuel -- Ignore unavailable to you. Want to Upgrade?

To: Runner who wrote (13652)	3/20/2000 11:43:00 AM
From: Howard Williams	Read Replies (1) \| Respond to of 14347

Booking stranded gas reserves 101......... This is background material for some data I've found on Anschutz/FST stranded gas that I'll post shortly. IMHO, the following insightful information is HIGHLY relevant to Anschutz/FST's interest in RNTK's F-T/GTL technology. Available from SYNM's website, this information was presented by Gaffney, Cline & Associates a week after SYNM presented their cobalt-skewed vision of GTL's future. Added words by yours truly are in square brackets. "GAFFNEY, CLINE & ASSOCIATES MAKES CASE FOR GTL ENABLING BOOKING OF STRANDED GAS RESERVES Monday, February 14, 2000 Contact: John Ford Syntroleum Corporation (918) 592-7900 www.syntroleum.com Ben Cline Gaffney, Cline & Associates (+44) 1420 23366 www.gaffney-online.com London ----- At the IBC Gas-to-Liquids Conference held today in London, England, Gaffney, Cline & Associates (GCA) presented its analysis of gas-to-liquids (GTL) technology and how it could enable oil companies to book certain stranded reserves of natural gas, here-to-fore not booked as proved reserves in their statutory reporting to shareholders and potential investors. GCA is an international advisory firm that provides independent technical and managerial advice to the oil and gas industry worldwide. GCA supports its clients with integrated upstream and downstream expertise from its offices in the UK, USA, Venezuela, Rio de Janeiro, Buenos Aires, Singapore and Sydney. Its analysis was initiated by Syntroleum © Corporation (NASDAQ: SYNM), the leading licensor of GTL technology worldwide, for the direct benefit of its licensees who are considering GTL project around the world, recognizing [with amazing foresight] that it will also benefit others in the GTL industry as well. "In the opinion of GCA, oil companies [like Anschutz/FST] with stranded, unbooked natural gas volumes that meet certain conditions regarding quantity, supply cost, location and deliverability should be able to book these as proved reserves by virtue of now having the ability to produce and market these reserves by applying GTL technology," states GCA's Senior Partner, Ben Cline. In his presentation in London today, GCA's Senior Associate Jim Ross reviewed the status of the GTL technology and stated, "GCA considers that booking proved gas reserves in association with a GTL plant is no different than other new development projects, and would include the following requirements: 1) Use of proven technology and access to that technology, i.e., owning or having a license to use GTL technology; 2) Positive project economics, based on meaningful feasibility studies; 3) Evidence of an intent to proceed with the project as may be supported, for example, by a commitment to facilities construction, gas supply agreements, secured siting, permitting, or financing. It is estimated that over 5,000 TCF of discovered gas resources exist in the world today that are unable to be economically produced and monetized because of their remote locations and lack of transportation infrastructure to get them to market. GTL technology that can be licensed from Syntroleum [or RNTK or others] could convert these stranded natural gas assets into an environmentally clean liquid transportation fuel that is compatible with the wholesale distribution and retail sales infrastructure in markets around the world. This would enable them to be added to oil-company proved reserve volumes, subject to satisfying the usual relevant regulatory requirements. "It is important for companies [like Anschutz/FST] to be able to fully recognize the value of their asset base by monetizing these stranded volumes" stated Mark Agee, Syntroleum president and chief operating officer. "Gaffney-Cline's analysis should give all concerned a more complete and integrated picture of the ultimate impact that a new GTL project could have in bringing new proved gas reserves onto the books of a public oil and gas company." .....Right as rain, Mr. Agee. Obviously, Anschutz/FST has been paying attention and feels it has natural gas assets that fit perfectly into a Rentech-based implementation of Gaffney-Cline's vision. It's reasonable to assume Anschutz/FST shopped around for the best GTL capability to meet their needs, didn't pick SYNM, and even passed over Sasol that is native to South Africa. And remember, this is for doing GTL with natural gas. Is cobalt really king? More coming.....