Oxford Catalysts Group
OCG SpeedRead
April 2013

In late 2008, Oxford Catalysts Group PLC acquired Velocys, Inc. to create the Group as it is today. Since then we have operated under two brand names.  Within the financial community we are known as Oxford Catalysts, while the oil and gas industry knows us as Velocys.  This 'dual identity' has created some confusion and we recognise that the name "Oxford Catalysts" is now actively misleading for the current nature of the business. So, to coincide with the commercial rollout of our technology, and following an external review, all our activities soon will be marketed under the brand name Velocys.  The company's name change will take place during the second half of the year, and we will be sure to keep you briefed on the timing.  Although our name is changing, we will remain one company, with one goal – commercialising smaller scale gas-to-liquids (GTL) technology.
Meanwhile our commercial roll-out continues to gather pace; highlights this quarter include the placement by Ventech of an order for reactors sufficient for a 1,400 bpd GTL plant, and the completion of the fabrication of our first multi-core commercial Fischer-Tropsch (FT) reactor.

Despite recent gas price rises, the market fundamentals for GTL remain strong, in North America and elsewhere. Smaller scale GTL is uniquely positioned to provide an economically attractive solution to associated gas flaring, to bringing stranded gas to market and to meeting the demand for high-value paraffinic hydrocarbons.

Roy Lipski, CEO

What's new?

Ventech Reactor Order
In April, Ventech placed an order with Oxford Catalysts Group (OCG) for sufficient FT reactors for a plant of approximately 1,400 bpd of capacity. This is the first order of its kind for the Group and will help kick start our manufacturing supply chain. The two companies have been working closely together for over a year and a half on the design of a fully integrated, shop fabricated modular GTL plant. [Read more...]

Calumet Project Update
Calumet, the specialty petroleum products manufacturer, who selected our FT technology for a GTL plant to be located at its Karns City, Pennsylvania facility in September 2012, has confirmed that the project economics look "strong" and that the technology "is fantastic". An investment decision by Calumet is expected at the end of the year. If the project continues at its current pace, it will likely be the first GTL plant to be operational in North America, and the only commercial smaller scale GTL anywhere in the world. [Read more...]

Velocys Pilot Plant and Customer Training Centre Opens
On 29 April Velocys will be officially opening its Pilot Plant and Customer Training Centre in Plain City, Ohio. The integrated facility features the company's FT and Steam Methane Reforming (SMR) technologies. The plant, which began operation in March 2013, is producing nearly 1 barrel per day of ultra-pure synthetic liquids and waxes. For further details, or if you would like to attend the opening event please contact Tad Dritz.

125 bpd Fischer-Tropsch Reactor Fabrication Complete
The manufacturing of the first multi-core commercial OCG FT reactor was completed at the end of March. The reactor, which can produce 125 barrels per day of liquid fuels, demonstrates the advances OCG has made regarding supply chain qualification over recent months.
Financial Results for the Year Ended 31 December 2012
On 26 March OCG announced its 2012 financial results; highlights being an increase in revenue to £7.6 million (2011: £4.7 million) and the £30.6 million fund raising. In his Chairman's Statement, Pierre Jungels noted, "2012 was truly a milestone year for Oxford Catalysts" and "2013 looks set to be another pivotal year of commercial progress for the Group". [Read more...]

Intellectual Property (IP) Enforcement
On 19 March Velocys filed a case in the UK High Court against CompactGTL alleging infringement of a number of OCG's patents.  OCG owns or has exclusive licence to the world's largest microchannel patent portfolio, encompassing more than 800 patents, with 87 patents having being granted in the last 12 months.  The strength of OCG's IP continues to be proven; recently, OCG successfully defended seven patents against invalidity challenges in the US.  Laura Silva, Director of Legal and IP at OCG said, "IP lies at the heart of our competitiveness and we take its infringement very seriously, for our own sake and that of our partners and customers". [Read more...]

On the conference circuit

At the IHS CERAWeek strategic session "Capturing the Spread: Turning North American Natural Gas into Higher-value Products", held on 6 March 2013, our CEO Roy Lipski highlighted how smaller scale GTL is uniquely placed to realise high value from shale gas and other low value gas resources in North America. Download the presentation here.

Neville Hargreaves, Business Development Director, presented "Modular GTL – Economic Solution for Distributed Gas" at the 10th Natural Gas Conversion Symposium in Doha, Qatar, on 6 March.

Steve LeViness, FT Product Manager, presented "Velocys Fischer-Tropsch Synthesis Technology – New Advances on the State of the Art" at the 245th American Chemical Societies' National Meeting on 9 April in New Orleans, Louisiana.

Coming soon:
Members of our team will be presenting at the following events over the coming months:
In the press

The Group received wide coverage from the UK national and investment media following the announcement of the 2012 final results. On 27 March Investors Chronicle wrote that OCG had had "a milestone year where it brought its gas-to-liquid (GTL) technology to the brink of commercialisation".

On the same date the Financial Times headlined "Oxford Catalysts hails dawn of new manufacturing era".

Roy Lipski was also interviewed by BoardRoom Radio and Edison TV regarding the financial results.

Press interest in our new strategic investor, Roman Abramovich's company Ervington Investments Ltd, continues.  An article in the 12 March edition of Red Hot Penny Shares claimed that OCG/Velocys was "A better investment than Fernando Torres" and on 16 March MoneyWeek's "Ten reasons to be bullish" asked "So what has Abramovich been up to?"

On April 16, The Financial Times Special Report on the gas industry featured the article "Gas to liquids: Launch pad proffered for small scale GTL plants", quoting CEO Roy Lipski.

Also on April 16, Unconventional Oil and Gas Monitor reported "The world of gas plenty and liquid fuel thirst is crying out for distributed small-scale GTL", featuring an interview with CEO Roy Lipski.

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 trades through its subsidiaries 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).