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

To: John Hanzl who wrote (1342)	2/21/1998 2:36:00 PM
From: Andrew H	Read Replies (3) \| Respond to of 14347

John, These paragraphs from a PR available at the RNTK website give an excellent description of the potential of RNTK's technology. The company has been in talks with TX for nearly 1 year now and the CEO has stated that other companies have show considerable interest as well. I agree the preferred offering is less than ideal. In deciding whether or not you want to invest in the company, you must weigh the risks of the technology and patent potential vs. the risks of the financial situation. However, I don't see anyone like TX negotiating with FAMH. LOL. The new patents, together with six (6) previously issued patents, make the Rentech process one of the most desirable gas conversion technologies available for remote gas resources and other important applications. Rentech's selection of an iron based catalyst as the cornerstone of its technology permits the widest selection of potential feedstocks, ranging from coal to natural gas. For Example, oil refineries, for environmental reasons, are installing readily available process equipment to convert low value products (bottoms) to synthesis gas. The low hydrogen to carbon monoxide ratio in the synthesis gas produced form these products precludes the use of cobalt gas conversion catalyst but is an ideal feedstock for Rentech's iron based catalyst. Implementation of the Company's technology in refineries producing synthesis gas from bottoms can improve their efficiency as well as total revenues. If a typical 100,000 barrel per day refinery had 15,000 barrels per day of heavy bottoms material to dispose of, a portion of the synthesis gas produced from that material could meet the refinery's estimated 50 Mw electrical requirements and the remainder of the synthesis gas could by utilized by the Rentech process technology to produce approximately 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. In today's environment of dwindling oil supplies, increased importance is being placed upon technologies capable of converting currently unmarketable gas reserves to liquid hydrocarbons. According to a November 1996 Salomon Brothers report, the world's identified unmarketable gas resources represent a potential reserve base of 0.4 trillion barrels of oil. This is approximately equivalent to one half of the world's remaining oil reserves. According to Mr. Dennis L. Yakobson, president and CEO of Rentech, Inc., "These two new key patents combined with patents previously issued and Rentech's capability to use a wide variety of feedstocks places the Company's position in the forefront of gas to liquids conversion technology. The attention now being devoted to gas to liquids conversion on a worldwide basis could provide Rentech with significant opportunities for utilization of its technology." Rentech announced on April 1, 1997 that it entered into an agreement with Texaco Group, Inc. to negotiate exclusively with Texaco to establish a business relationship to accelerate the development and licensing of Rentech's Process Technology and to commercially exploit the technology on a worldwide basis. .