Oxford Catalysts Group

OCG SpeedRead

May 2012

Markets, money and momentum are three key ingredients for a successful business and all of these are aligning to propel OCG rapidly forward in the Gas-to-Liquids (GTL) marketplace. With Henry Hub gas prices dipping below $2/mmbtu and Brent Crude commanding over $115/bbl, the arbitrage opportunity associated with GTL has literally never been better; and this has resulted in unprecedented interest in our solutions. Fortunately, we have the bandwidth to take on these new prospects, due in part to our successful fundraising activities last year. OCG ended 2011 in better shape than ever, including the largest cash reserve in the company’s history, strong technical success and progress with our partners. 2012 looks set to be a milestone year for our business.

Roy Lipski, CEO

What's new?

Offshore GTL Partnership Accelerates towards Commercialization
We are pleased to announce that our offshore GTL partners, Toyo Engineering and MODEC, have committed several million dollars of additional funds to accelerate commercialization. Our partnership was established in 2007 to exploit OCG technology in the offshore GTL market, with Toyo and MODEC fully funding both development and demonstration. In 2008, Kobe Steel was added as a preferred manufacturer, and in 2010 an agreement was announced with Petrobras to host and cover the costs of operating an integrated GTL demonstration at its refinery in Fortaleza, Brazil. Another result of this partnership is a new video showing the modular GTL concept for offshore applications.

GTL Engineering Study Progresses
In February, we announced that an engineering study for a 15,000 bpd GTL plant successfully progressed to the next phase (known as FEL2). The study, conducted by a major engineering firm on behalf of a multi-billion dollar Exploration & Production company, is evaluating a facility in North America for converting shale gas into finished synthetic fuels. We announced selection for the first phase of the engineering study (FEL1) in June 2011.

New Experimental Facility Opens in Thailand
A facility for testing microchannel reactors has begun operations at a Research and Technology Institute in Wangnoi, Thailand. The new facility, which is operated by PTT, the Thai National Energy Company, was set up under the terms of a research collaboration with Velocys, the US-based subsidiary of OCG, and is designed specifically to test microchannel reactors for GTL applications.

On the conference circuit

Jeff McDaniel, Commercial Director, presented a talk titled "Velocys: the distributed GTL solution" at the Zeus International, GTL Workshop in Houston, Texas on 7 March 2012.

Steve LeViness, FT Product Manager, delivered a talk titled "Economical smaller scale GTL enabled by microchannel reactor technology and superactive catalyst" at the Syngas Convention, which was held 1-4 April 2012 in Cape Town, South Africa. OCG was a silver level sponsor of this event.

This week, we are sharing booth space with our offshore GTL partner, MODEC, at the Offshore Technology Conference (OTC) in Houston on 30 April through 7 May.

Over the next couple of months we will also be presenting at the World XTL 12 Summit  in London on 21-23 May and at the World Gas Conference in Kuala Lumpur, Malaysia on 4-8 June.

In the press

Our technology continues to attract coverage in the trade and technical press, including:

In addition, the opportunity for GTL is increasingly being recognized by the mainstream media, including Wall Street Journal, Forbes and the Financial Times.

Company news

As we make preparations for full commercialization, our staff is growing to meet new demands. Since the beginning of 2012, we are pleased to welcome seven new hires in the US (Caleb Barnhart, Theron Van Putten, LaNiece King, Amanda Miller, Mariela Sanoja, Derek Bridgeford and Barbara Rose) and two new hires in the UK (Shane Fraser and Maurizio Minervino).

Contact us for further information

General enquiries:
info@velocys.com or info@oxfordcatalysts.com

Technical press enquiries:

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Oxford Catalysts Group PLC consists of Oxford Catalysts Limited, 115E-H Milton Park, Abingdon, Oxfordshire, OX14 4RZ, UK (Registered in England No. 5258554) and Velocys, Inc., 7950 Corporate Blvd, Plain City, Ohio 43064, USA (Registered in the State of Delaware, USA)