Syntroleum Signs Gas-to-Liquids Joint Development Agreement

TULSA, Okla.--(BUSINESS WIRE)--Syntroleum Corporation (NASDAQ:SYNM) announced today that it has signed a Joint Development Agreement with Kuwait Foreign Petroleum Exploration Company, K.S.C. (“KUFPEC”) to join in the development of a 50,000 barrel per day Gas-to-Liquids (“GTL”) facility in Papua New Guinea (“PNG”). This agreement follows the formal statement of support for the GTL facility by the Right Honorable Sir Michael Somare, Prime Minister of PNG. In his strong support letter to Syntroleum in early November responding to the feasibility study provided by the company, the GTL facility was granted priority status and designated as a lead project in PNG’s effort to create a domestic gas monetization industry utilizing a portion of its significant gas resources.

“This is a great achievement for Syntroleum. We have completed our feasibility study, received the PNG Government’s strong support, and have been joined in the project by one of the world’s leading oil and gas exploration companies, KUFPEC. We are pleased that the project is moving forward with such support”

While the project is still in development, when complete the plant will produce 50,000 barrels per day of Syntroleum Ultra Clean S-2 Diesel and other high valued ultra clean products. This will make PNG one of the few countries in the world where ultra clean, environmentally friendly GTL fuels are produced. The plant will become an anchor facility in the newly created Konebada Petroleum Park near the capital city of Port Moresby.

“This is a great achievement for Syntroleum. We have completed our feasibility study, received the PNG Government’s strong support, and have been joined in the project by one of the world’s leading oil and gas exploration companies, KUFPEC. We are pleased that the project is moving forward with such support,” said Jack Holmes, president and CEO of Syntroleum. “Our focus now is to put in place the major contracts for the facility and move to financing.”

KUFPEC’s Chairman and Managing Director Mr. Bader N. Al-Khashti also commented, “KUFPEC is excited to be part of the GTL project in PNG with Syntroleum. This project is a stepping stone for us to embrace downstream monetization of gas resources.”

About Syntroleum (NASDAQ:SYNM) (http://www.syntroleum.com)

Syntroleum Corporation owns a proprietary process for converting natural gas or synthesis gas derived from coal and other carbon-based feedstock into synthetic liquid hydrocarbons. The company plans to use its technology to develop and participate in natural gas and coal monetization projects in a number of global locations.

About KUFPEC

KUFPEC, established in 1981 by its parent company, KPC, is an international energy company engaged in the exploration, development and production of crude oil and natural gas in Africa, the Middle East, Asia and Australia. KUFPEC has offices in Kuwait, Tunisia, Indonesia, Australia and Pakistan.

This document includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, statements relating to the amount of oil, natural gas and GTL product, possible production rates, fuel capabilities and characteristics, negotiations with industry participants and governmental entities, project costs, financing and timing, receipt and amount of project revenues, and the use and effectiveness of the Syntroleum Process and related technologies and products. When used in this document, the words "anticipate," "believe," "estimate," "expect," "intent," "may," "project," "plan," "should," “could,” and similar expressions are intended to be among the statements that identify forward-looking statements. Although Syntroleum believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the failure to receive governmental approvals, the failure to assign a participating interest to Syntroleum and/or to an industry participant, failure of the wells to produce as the previous test wells, the potential that commercial-scale GTL plants will not achieve the same results as those demonstrated on a laboratory or pilot basis or that such plants will experience technological and mechanical problems, the potential that improvements to the Syntroleum Process currently under development may not be successful, the impact on plant economics of operating conditions (including energy prices), construction risks, the ability to implement corporate strategies, competition, intellectual property risks, Syntroleum’s ability to obtain financing and other risks described in the company’s filings with the Securities and Exchange Commission.

® “Syntroleum” is registered as a trademark and service mark in the U.S. Patent and Trademark Office