LL Renaissance Ltd discusses its strategic positioning in the CNG Markets
(firmenpresse) -
LL Renaissance Ltd discusses its strategic positioning in the CNG Markets
London, UK 03/06/12 –LL Renaissance Ltd(Frankfurt - Borse: 47R) ("LL Renaissance Ltd" or the "Company") discusses its positioning within the CNG Markets.
LL Renaissance Ltd discusses CNG (Compressed Natural Gas) Profitability and how it relates to its upcoming plan of operations as a road mobile midstream producer and distributor within the traditional fully integrated natural gas markets – Upstream exploration and development to production, Midstream producer and distributor and Downstream retailer.
With upstream natural gas production there is always substantial risk of complete loss of capital with no return even where drilling is in a proven area of natural gas production. With a successful drilling program the production volume and life of the gas well still may not be sufficient to generate an acceptable return on capital considering further capital investment as a sunk cost is usually required for tie-in to an existing pipeline even if there a pipeline in close proximity.
Traditional Midstream production and distribution has typically involved barriers to entry with required capital expenditures over $100 Million USD by companies with market capitalization in the billions of dollars, such as Enterprise Products Partners L.P at $35.9 Billion USD and Williams Partners L.P at $13.7 Billion USD. This is again a substantial capital investment in a plant at fixed location near a pipeline gathering system that is further dependent on the nearby gas reserves, with their even decreasing production volume.
Downstream distribution to the retail market is in smaller multiple locations in the form of service stations for refueling CNG fueled vehicles. The margins for selling CNG at retail stations are so small that according to 2007 statistics from the US Association for Convenience and Petroleum Retailing margins are only 5% to 8% on each gallon of fuel sold while sales on non-fuel sundry items have a margin of 31%.
LL Renaissance’s model of being a mobile midstream producer and distributor of CNG avoids the risk of Upstream exploration, the enormous $100 million plus capital expenditures of large gas plants and gathering systems of established Midstream processing and distribution and the low margins involved in the downstream service station retailing.
As a road mobile midstream processor and distributor LL Renaissance avoids most of the risk of capital loss and low margins while achieving optimal capital efficiency with operating margins in excess of 200%. By taking domestic abundantly produced natural gas purchased at a GGE (Gallon Gasoline Equivalent) of $0.37 USD (€0.28) and then selling it for an average GGE of $1.60 USD (€1.20) then deducting managed operating expenses. This business model will allow LL Renaissance to achieve rapidlike positioning as the preeminent Midstream CNG processor and distributor throughout the United States.
As of today the Henry Hub Natural Gas Spot Price is $2.42 USD or €1.82.
About LL Renaissance Ltd. (Frankfurt - Borse: 47R)
The Company is a goal-oriented midstream processing and distribution company with some upstream production interests. It is the company’s goal to be expanding beyond the tri-state area of Oklahoma, Kansas and Texas as a niche midstream processor and distributor within the next 12 months. The Company is also producing natural gas at Cripple Creek in southern Alberta Canada. LL Renaissance is actively searching out new markets to establish itself and the preeminent midstream supplier for CNG. Visit us at: www.llrenaissanceltd.com
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of our exploration program at our properties and any anticipated future production. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with petroleum exploration and development stage exploration companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-KSB for the most recent fiscal year, our quarterly reports on Form 10-QSB and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
ON BEHALF OF THE BOARD
LL Renaissance Ltd.
- - - - - - - - - - - - - - - - - -
Bald Kommen
President & C.E.O.
To find out more about LL Renaissance Ltd. (Frankfurt - Borse: 47R), visit our website at www.llrenaissanceltd.com
Leseranfragen:
LL Renaissance Ltd.
2nd Floor, 15-157 John Street
London, England
E-Mail: info(at)llrenaissanceltd.com
" alt="Uranerz Announces Fourth Quarter and 2011 Financial Results">
" alt="Zimtu Capital Corp. announces Transaction with Big North Capital Inc. for Graphite Properties in Southern Ontario">
Datum: 16.03.2012 - 08:08 Uhr
Sprache: Deutsch
News-ID 125482
Anzahl Zeichen: 5878
contact information:
Town:
Wien
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 198 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"LL Renaissance Ltd discusses its strategic positioning in the CNG Markets
"
steht unter der journalistisch-redaktionellen Verantwortung von
LL Renaissance Ltd. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
