Oxford Catalysts Group
OCG SpeedRead
January 2013

OCG is the only smaller scale Fischer-Tropsch (FT) provider to be announcing selection for commercial projects, so it is little surprise that we ended 2012 with an oversubscribed fundraising, achieved under difficult market conditions. The £30.6 million share placement is a huge vote of confidence in our technology and potential. We are delighted by the very significant support received from existing shareholders, several new major institutional investors and our new strategic investor, Ervington Investments, owned by Roman Abramovich. These funds will allow us to accelerate forward, consolidating our market lead and driving the commercial roll out of our technology. The markets are beginning to appreciate our potential – OCG stock has been the best performing share in the AIM 100 over the past 6 months (up 161%). 2013 promises to be a landmark year for our business.

Roy Lipski, CEO

What's new?

Ventech Collaboration
After working closely together for over a year on the design of a fully integrated, shop fabricated, modular Gas-to-Liquids (GTL) plant, in November OCG solidified its relationship with Ventech by entering into a series of agreements. As a result, OCG's US-based subsidiary Velocys has become Ventech's preferred supplier of FT technology in North America, and Ventech agreed to place an order by 29th March 2013 for a set of FT reactors for use in the first commercial modular GTL plant. Furthermore, through Ventech Project Investments LP, $200 million was made available to make equity investments in energy projects, including co-investment in GTL plants.
GreenSky London Progress Update
As a follow-up to our selection in July 2012 as the sole FT supplier for GreenSky London and future sustainable jet fuels plants developed by Solena Fuels, in November British Airways (BA), a partner in the GreenSky project, announced several significant milestones. BA confirmed its commitment to purchase the sustainable jet fuel produced by the plant for ten years, a contract worth $500 million (£315 million) at current prices. They also confirmed that consent work has begun on the site for the plant, Pre-Front-End Engineering and Design work has started, and a target production date of 2015 has been confirmed.
Mourik Agreement for Commercial Catalyst Handling
In November we announced the signing of a service agreement with Mourik LP to provide catalyst handling services for commercial FT reactors. The replacement of spent catalyst with fresh catalyst every two to five years is required for all FT technologies, and we are very pleased to be working with a worldwide leader for this vital activity as we ensure our readiness for commercial roll-out. 
£30.6 million Share Placing
As already mentioned, in December, OCG was pleased to announce the successful placing of new shares to raise approximately £30.6 million. The oversubscribed placing had significant support from existing shareholders, several major new institutional investors and a new strategic investor. The naming of the new strategic investor, Roman Abramovich's Ervington Investments Ltd, at OCG's Shareholder's General Meeting on 3rd January 2013 attracted widespread media attention. See 'In the press', (below).

On the conference circuit

Steve LeViness, FT Product Manager, presented at Energy Frontiers International Gas-to-Market & Energy Conversion Forum on 22nd October in Houston, Texas.  His talk was entitled "Opportunities for Modular GTL in North America".

On 12th December, Tad Dritz, Business Development Manager, presented at the Pemex - World Bank GGFR Gas Utilization and Flare Reduction Workshop held in Veracruz, Mexico.

In addition, Neville Hargreaves, Business Development Director, represented Oxford Catalysts Group in a panel discussion at the World GTL Congress in Doha, Qatar, 13-15 January 2013.

Coming soon:
We will be presenting at the Natural Gas Conversion Symposium (NGCS) in Doha, Qatar that runs 2-7 March 2013.

In the press

The Group received wide coverage from the UK national print and broadcast media in early January 2013 following the announcement that Roman Abramovich's company, Ervington Investments Ltd was OCG's new strategic investor.

Neville Hargreaves, Business Development Director, was interviewed by BBC South Today and BBC Radio Oxford. The news received coverage in The Times, The Financial Times and The Sun (UK's most widely read paper), amongst many other UK national papers.

On 5th January, The Financial Times ran the article "Abramovich invests in 'gas-to-liquids' in UK. Roman Abramovich, the billionaire owner of Chelsea Football Club, has invested £5m in a small UK technology company that specialises in..." (Full article for registered subscribers).

OCG's shares continue to be featured and recommended in the investor media; for example see Red Hot Penny Shares in December and Small Company Share Watch in January. 

During the past quarter, OCG, Gas-to-Liquids and Biomass-to-Liquids continued to attract wide coverage in the technical and business press:
Roy Lipski is quoted in an article that appeared in Forbes entitled, "Gas-to-Liquids Plants: No Longer Exclusive to Larger Players", on 17th January.

A feature article discussing OCG's collaboration with Ventech entitled, "Modular design of smaller-scale GTL plants", appeared in the Q1 2013 edition of Petroleum Technology Quarterly.

Roy Lipski was interviewed by World Gas Intelligence in Vol. XXIII, No. 51 on December 19th headlined "Small GTL's Market Reach as Great as Opec's, UK Firm Says".

On 20th November, Biofuels Digest asked "Little Big Tech: Can Fischer-Tropsch technology work at smaller scale?"

Company news

OCG continues to expand as we ramp up activities related to the commercial roll-out of our technology. New employees include Brian Cody (Senior Business Development Director) and Matt Davis (VP of Manufacturing) in the USA and Louise Gould (Marketing Manager) in the UK.

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 Olympic Avenue, Milton Park, Abingdon, Oxfordshire, OX14 4SA, UK (Registered in England No. 5258554) and Velocys, Inc., 7950 Corporate Blvd, Plain City, Ohio 43064, USA (Registered in the State of Delaware, USA)