Velocys Share Discussion Threads

[gac141] 08/2/2016 18:23

FYI

By MATTHEW DALY, Associated Press

WASHINGTON (AP) — The Obama administration on Friday proposed new rules to clamp down on oil companies that burn off natural gas on public land, arguing the effort will reduce waste and harmful methane emissions as part of President Barack Obama's bid to curb climate change.

Energy companies frequently "flare" or burn off vast supplies of natural gas at drilling sites because it does not earn as much money as oil. A report by the Government Accountability Office said 40 percent of the methane gas being burned or vented could be captured economically and sold.

Interior Secretary Sally Jewell said in a statement that natural gas should be used to power the economy — not wasted being burned into the atmosphere.

Jewell said the new rule will modernize decades-old standards to reflect existing technologies, allowing companies to use captured natural gas to generate power for millions of homes and businesses. Between 2009 and 2014, enough natural gas was lost through venting, flaring and leaks to power more than 5 million homes for a year, she said.

The new rule also should generate millions of dollars that can be returned to taxpayers, tribes and states while reducing pollution, Jewell said.

The rule, developed by Interior's Bureau of Land Management, would require oil and gas producers to limit the rate of flaring at oil wells on public and tribal lands, periodically inspect their operations for leaks and replace outdated equipment that vents large quantities of gas into the air. The rule will be open for public comment for at least two months, with a final rule expected by the end of the year.

Most of the gas being burned at drilling sites is methane, a powerful greenhouse gas that is 21 times more potent at trapping heat than carbon dioxide, although it does not stay in the air as long. Methane emissions make up about 9 percent of U.S. greenhouse gas emissions, according to government estimates.

The oil industry has argued that new regulations are not needed for methane, because the industry already has a financial incentive to capture and sell natural gas. Methane emissions have been reduced by 21 percent since 1990 even as production has boomed, according to the Western Energy Alliance, an industry group.

"Another duplicative rule at a time when methane emissions are falling, and on top of an onslaught of other new (federal) regulations, could drive more energy production off federal lands," said Erik Milito, director of upstream and industry operations for the American Petroleum Institute, the top lobbying group for the oil and gas industry.

If that happens, the result would be "less federal revenue, fewer jobs, higher costs for consumers and less energy security," Milito said.

Environmental groups praised the tougher methane curbs, saying regulations are needed to encourage industry changes that otherwise may not occur. "Today's proposal is a win all around: for our environment, public health, taxpayers and our energy security," said David Willett of the League of Conservation Voters.

In the oil-rich Bakken region of North Dakota, as much as one-third of natural gas is burned off, causing significant light pollution that is visible from space. Officials at Theodore Roosevelt National Park in North Dakota say flaring activities can spoil the park's dark night skies.

The Interior Department rule is part of the Obama administration's target to cut methane from oil and gas drilling by 40 to 45 percent by 2025, compared to 2012 levels.

The Environmental Protection Agency issued a rule in August that requires energy producers to find and repair leaks at oil and gas wells and capture gas that escapes from wells that use a common drilling technique known as hydraulic fracturing, or fracking.

[gac141] 05/2/2016 18:50

New to Velocys website

Commissioning team
Considerable in-house experience in the commissioning and start-up of commercial GTL projects.

Members of Velocys' 70-strong R&D and manufacturing supply chain teams have considerable experience in the commissioning and start-up of commercial GTL projects for Sasol.

Roger Harris, Velocys' Technology Development Manager, joined the company in 2014 after gaining 10 years' experience with Sasol where he was the GTL Technology Manager for their Business Development team. As well as spending significant time in R&D he was part of the start-up teams for new chemical technologies as well as Sasol's ORYX GTL plant in Qatar.

Roger's team was strengthened further in 2015 with the appointment of Johan Malan as Commissioning Manager, who is now an important member of project team for ENVIA Energy's GTL project.

During Johan's 10-year tenure at Sasol he was involved in the design, fabrication, start-up and operation of a range of units and technologies including a modularised regeneration system and culminating with the start-up of the Escravos GTL plant in Nigeria.

Johan is taking a lead role in finalising procedures and protocols for commercial operation after which he will mobilise to the Oklahoma City site where he will take the lead during commissioning and start-up to ensure successful operation of the facility.

In February 2016 Velocys gained a greater equity share of the ENVIA project and a greater influence in the commissioning, start-up and operations of the plant – a role the company is well-equipped to fulfil.

[gac141] 05/2/2016 17:21

Thanks Haydock!

[gac141] 05/2/2016 17:06

This is just out...

Interview about Velocys



They mention again about the speciality products and how we should not be judged by the price of Oil.. Finally the market will get it....

Interesting they say start up at EastOak will only be a matter of weeks from completion- Mid year not the 3 months quoted earlier.

They finish on- They believe VLS share Price is worth substantially more than the current Share Price.

[haydock] 05/2/2016 17:04

Velocys The ENVIA Energy GTL JV moves on, contractor Ventech has signed its first major contract and Velocys has provided $12m of funding of which $9m is a loan at 10%. This is further good news from Velocys and I am looking forward to meeting the new CEO to get an idea of his plans. - See more at: hxxp://www.malcysblog.com/#sthash.uoXGkQOP.dpuf

[gac141] 05/2/2016 15:59

"Successful execution of Red Rock's project in Oregon is expected to result in revenues to Velocys in excess of $15 million during construction, and an additional $30 million or more over the life of the facility"

Also Numis said "We forecast Velocys will remain
funded to end 2017 (Dec-17 Cash & Equivalents of c.£5m), where the business
currently has c.£850k of gross debt on its balance sheet."

Ashtabula must be getting very close how much could that generate on a 4800 bpd plant with a view to raising that to 10000 bpd once up and running??? They have pointed out that they are focusing on very high value speciality products with a very low cost feed stock..they have also significantly reduced the cost of production and that technology is being integrated at Ashtabula.

Also settlement from CGTL announced 21st December almost certainly was not in that figure.. How much ? We don't know but it must have been in excess of 7 figures

I do not concur with your sentiments. But we are all entitled to our view

[fluky] 05/2/2016 13:27

Gac141: The $3M will not break the bank but the $9M could. From the press release: 1. VLS had £38M cash at the end of 2015 - meaning monthly cash burn £1.82.
2. With the $12M cash outlay, this means that VLS will run out of cash by May 2017 without additional revenues.
3. Mechanical completion mid 2016. Start-up period 3 months. Stable operation by October.
This means that that there is no margin for error in the operation of the project. They need to prove a flawless operation for a few months before they can go back to the market for another raise. It is good to see that Velocys takes charge of the project although there is no other option...

[gac141] 05/2/2016 12:54

David Says...

"Within the next 12 months we plan to have our commercial reference plant in Oklahoma City fully operational and in the global market shop window. This will be a commercially transformational event for Velocys. In parallel we are fully engaged and working on the next transformational steps, two and three, and excellent progress is being made"

We know what 2 and 3 (RedRock and Ashtabula) are what we don't know .... yet... is what "A significant number of third party project opportunities are not in the public domain and so we can not disclose details of these. However, it is important to note that some of these projects are at an advanced stage of development" are

Huge upside from here for sure.....

[andrewbaker] 05/2/2016 12:30

Yes, the move yesterday was most likely based on some knowledge of the progress that the company is making, given the announcement today. Once 50p. has been breached, there will only be a little resistance around the 85p. mark before we get back to, and then above, £1 again. Can't happen soon enough for me. These jittery world markets that cause up and down swings to the big businesses, also tend to highlight the small companies with a good future, and Velocys is one of these, IMHO. I'm long, and now is a good time to buy more.

[meijiman] 05/2/2016 11:29

fluky-he says 'get in touch' so you can ask him about the points you have raised!

[gac141] 05/2/2016 11:26

I don't see that at all... They will have much greater control and $3m is not going to break the bank in the short term ..

"The terms of the loan provide Velocys the opportunity to gain a greater equity share of the project and greater influence in the commissioning, start-up and operations of the plant"

[fluky] 05/2/2016 11:15

This is not good news. It means that Velocys, as junior partner in the JV, has to come up with the moneys to complete the project. Read between the lines that the billion dollar company partners, Waste Management and NRG Energy, do not want to add more to their participation, although $9M is a pittance for them. This is what the Americans call a "Hail Mary Pass" in football for Velocys...

[gac141] 05/2/2016 11:05

SpeedRead

February 2016
________________________________________
From experience I have become a great believer in technology and how it can transform markets and whole industries. Velocys has something really special and I believe it has the potential to transform gas-to-liquids to serve a number of material markets. I am immensely excited to be on board at such a time, to help drive the company to deliver this future.

Within the next 12 months we plan to have our commercial reference plant in Oklahoma City fully operational and in the global market shop window. This will be a commercially transformational event for Velocys. In parallel we are fully engaged and working on the next transformational steps, two and three, and excellent progress is being made.

I cannot deny that coming back to the petrochemical sector has been like coming home. Although very familiar to me, it is even more important today in our competitive world, to have great technology. Our global market leading position combined with our impressive investor base creates a truly differentiated and robust platform to commercialise our business.

It is very healthy, at such times of very low oil price, to review and test our current portfolio of opportunities and we plan to do this within a broader strategic review of the business. My approach, and one I will stay faithful to, is to continuously drive simplicity, focus, delivery and robustness into everything we do. We will apply this approach to our strategy, our routes to market and in how we conduct every part of our business. In 2016 we plan to deliver significant results, even whilst we have a challenging environment. Although our major shareholders retain their strategic view of their investment and remain supportive, they rightly have huge expectations for our delivery of sustainable value growth.

Touring all the company facilities, meeting our people and major partners over the last few weeks has further reinforced my excitement for the opportunity we have and how I can best support a hugely talented team. What struck me most was the unabashed, and to a person, deep craving for success and the will to make it happen. Quite formidable. Although we cannot abolish the market cycles, we must learn how to anticipate and thrive regardless. Our strategy and business must implicitly have robustness so that we can embrace the cycles and strive to deliver best in class performance. I, together with the rest of the company’s senior management team, look forward to setting out our strategic vision in the coming months.

Finally I want to thank everyone for such a warm welcome to Velocys.

Please get in touch if you would like more information on any of the items highlighted in this newsletter. Email...



David Pummell, CEO

the rest is... here

[gac141] 05/2/2016 10:52

The size of the plant was never announced officially- I think I heard something between 500-1000 bpd..but don't quote me on that.

[visionon] 05/2/2016 09:09

gac141. Can you remind us what approximate size this plant is in bopd ?

[gac141] 05/2/2016 07:47

Good to see the RNS out this morning and the update on ENVIA - Start up should be in about 3-4 months? Thank you Velocys for the update it is appreciated. ...

[gac141] 04/2/2016 13:12

Everyone who is interested in Velocys should listen to this..link below.

It shows that tremendous efforts and success has been achieved at the Pilot plant in Ohio and that the technology is being seriously geared to high value speciality products aiming at FID at Ashtabula with its incredibly low coat feedstock. The Marcellus Gas stock is the cheapest in the US and yet the product that we will make currently retails for over $200/b. Because of our incredible team of approximately 70 who are on the technical team we can produce these high value products and have reduced start up on the plant from 150 hours 18 months ago to now just 8!

30 odd Pence a share seems ridicules but I don't think the market gets us..when they do ............ Maybe they are ...just

Listen...

[gac141] 04/2/2016 12:06

The market seems to be positioning itself... Some additional clarity may make a significant difference to where the share price goes...

[andrewbaker] 04/2/2016 11:55

Nice move today: hopefully it will continue going forward, and patience will be rewarded, lol. :)

[gac141] 02/2/2016 12:28

Looking to see the SpeedRead out... I thought today but definitely expecting this week... I appreciate that words are cheap and actions are king.. at some point or other we will hear about not only the public domain news but also about the....

"Significant number of third party project opportunities are not in the public domain and so we can not disclose details of these. However, it is important to note that some of these projects are at an advanced stage of development"

[andrewbaker] 02/2/2016 11:16

Ruffer and Woodford have been heavy sellers, but Invesco has mopped up their sales, so now maybe the merits of the company will once again determine the share price: it's in the right industrial sector for ongoing growth as economies recover and capital expenditure starts again, though admittedly not that much that soon. It's tempting now to add to my holding: I'm watching very closely.

[gac141] 01/2/2016 18:00

I agree the city is far from convinced- That is because there is just no news out there yet... when they do all will become a lot clearer....

[fluky] 01/2/2016 15:01

Unfortunately, there is no good news. Regarding the updated Investors Q&A there is nothing new either, just spinning the same promising pipeline story. As long as no orders are announced, it is just talk...The overdue SpeedRead might provide new information but I am afraid it will be just more spin.

Gac141 is doing a genuine effort to paint a rosy picture for the shareholders but the facts are simply not there.

[gac141] 01/2/2016 11:51

Here is a reminder of what Numis said Mid- Nov.. maybe some news will come fairly soon now?

● VELOCYS (BUY 189P) – We note that the shares have seen disproportionate
pressure relative to the UK-listed oilfield service sector over the past few
weeks.

Despite the sustained pressure on global oil prices with the outlook for a recovery continuing to shift to the right, Velocys continues to progress with the construction of its first commercial plant in Oklahoma and its pipeline (both publically disclosed and undisclosed) continues to advance. Within its pipeline remain a number of undisclosed projects with adequate financing and offtake agreements in place to enable them to progress to FID in the near term.

The ENVIA Energy project continues to be on track for mechanical completion in 1H16, with the fabrication of the modules substantially complete, readying the project for installation and commissioning shortly.

Whilst the market opportunities for GTL are greater in a higher oil price environment, in the current market conditions Velocys is focussed on working with potential customers who are looking to harness to economics of GTL where low cost feedstocks exist (biomass, flared gas or landfill gas), in isolated
markets to fuel domestic energy demands, and where opportunities exist to produce high value speciality products (such as waxes and lubricants with have decoupled from WTI oil prices and retain strong economics).

We forecast Velocys will remain funded to end 2017 (Dec-17 Cash & Equivalents of c.£5m), where the business currently has c.£850k of gross debt on its balance sheet.

[gac141] 30/1/2016 14:13

This appears to be new and gives a very positive insight into what might be going on behind the scenes... Well worth a read ...!

If all seems as it does the share price will most certainly look after itself.