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

To: Howard Williams who wrote (13653)	3/20/2000 12:30:00 PM
From: Howard Williams	Respond to of 14347

Forest Oil (FST) GTL opportunities.......... Even though FST has a raft of natural gas holdings around the world, some data on specific opportunities for booking stranded gas reserves can be gleaned directly from FST's "Operations/Where We Operate page"........ forestoil.com ...........that contains the following: "International Forest's latest move, a more subtle tactic outside North America, is our international exposure. Since acquiring interests in thirteen projects outside of North America from The Anschutz Corporation in June of 1998, Forest Oil has been in the process of rationalizing and focusing its efforts on those blocks that best fit its long term international strategy. Our acreage positions in Italy, Switzerland, Germany, Tunisia, Thailand and South Africa all have noteworthy gas potential. The blocks in Italy, Switzerland, Germany and Tunisia are all close to infrastructure and growing markets [hence are not "stranded"]. Thailand [730,675 acres, 100% working interest] and South Africa [8.1 million acres, 90% working interest] are emerging gas market plays. As virtually all of our blocks are held 100% we will be actively seeking industry partners to reduce exposure, share risk and monetize assets." [some ala Gaffney-Cline's vision] "monetize assets".......FST's words. Getting into recent info from FST, their February 15, 2000 press release includes a discussion of plans for 2000....... corporate-ir.net .......here's their data on Thailand and South Africa holdings that are "stranded" (not near infrastructure or growing markets per above)...... so these are likely sites for FST to use GTL IMHO. "- THAILAND Forest (100% working interest) will drill a 1,000-meter test well at the Phu Din No. 1 in onshore northeast Thailand. If this well is successful, Forest will begin delineation drilling on its 700,000 acres of land. This well will drill a prospect on trend with Exxon's Nam Phong field." .........[That's really non-definitive and doesn't give anything to work with.] ........but the following does......... "- SOUTH AFRICA In November 1999, Forest (70% working interest) was awarded Block 1 (5 million acres) in South Africa. The Block has an existing undeveloped gas discovery (35 mmcfd) and is located directly to the north of Block 2 (70% working interest) where a 3-D seismic survey was completed in late 1999 over the AK gas discovery (50 mmcfd). While wells on Block 1 and 2 have tested at 85 mmcfd of production, Forest currently estimates commerciality will be reached at 200 mmcfd." ....... That's data we can do something with. If FST did no more than do GTL with the tested production of 85 mmcfd in South Africa, that would support about 8,500 bpd of GTL production from stranded gas. If they're correct in their 200 mmcfd estimate, it'd support about 20,000 bpd of GTL. Either way, if that's all FST ever does with GTL involving RNTK F-T, those are significant numbers for RNTK and FST. There is one discrepancy in the South Africa data above. One place says FST has a 90% interest and the other says 70%. I don't know which is correct. It's probably irrelevant from RNTK's standpoint since it looks like Anschutz owns the balance and they're directly involved. In fact, if 70% for FST is correct, Anschutz in effect has 58%. That comes from their 30% share combined with 40% of FST's 70% (i.e. 28%) that Anschutz owns. So there's at least a little quantitative info to gnaw on. And the PR did say they'd be looking at multiple opportunities including "the retrofitting of existing industrial gas plants to use the Rentech technology for production of GTL products." I haven't figured that one out at all.