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


To: Starfish* who wrote (8051)9/1/1998 1:22:00 AM
From: Andrew H  Read Replies (2) | Respond to of 14347
 
Try reading the release again, Starfish.

These are big name firms who could have decided to join their process to ANYONE in the GTL field. For whatever reason, they chose RNTK. This is clearly a validation of RNTK's technology. We do not know why they dicided to do business with RNTK, but the fact that they did says a lot.

Yes, RNTK is paying for the testing, but it appears the costs will be quite minimal.

Furthermore, there seems to be reason to believe that this new technology could result in a more economical GTL process (admittedly there are no guarantees). If this turns out to be the case, then all owners of GTL will want this process and RNTK will get a piece of all projects which use this technology. It could be very big.

Joint ventures come in many forms, whatever the venturers agree upon. In this case, the joint venture works like this--RNTK puts up a small amount of capital and their technology. If the process is not an improvement, then RNTK loses that small amount of capital and there is no venture. If the process is an improvement, RNTK gets a piece of every barrel of liquid which the process makes. Furthermore, it seems this process can be used off shore (barges and offshore platforms), a new and potentially lucrative market.

It appears this process may make RNTK's technology more than competitive with the likes of Syntroleum, Sasol and Shell in terms of regular GTL use. And this would be a great step forward for RNTK.