Syntroleum Reports Agreements in Business Development Activities in Papua New Guinea, Indonesia and Egypt.

TULSA, Okla. -- Syntroleum (Nasdaq:SYNM) announced that three recently signed memorandum of understandings (MOU) could lead to the construction of a gas-to-liquids plant using its proprietary Fischer-Tropsch technology.

Syntroleum signed a MOU with the Government of Papua New Guinea to examine the development of a 50,000 barrels per day GTL plant as part of an industrial complex dedicated to gas-based industries near the capital city of Port Moresby. As part of the MOU, Syntroleum will work with the government of Papua New Guinea Ministry of Planning and Development to study the feasibility of a large GTL plant that would share a natural gas pipeline and infrastructure facilities with various other possible gas conversion participants, including ammonia, methanol and power plant developers.

Proved and probable natural gas reserves in Papua New Guinea are estimated to be more than 15 trillion cubic feet. Approximately six trillion cubic feet of natural gas reserves are currently dedicated to a planned pipeline linking Papua New Guinea to Australia. Additionally, Syntroleum has had discussions with several gas reserve holders in Papua New Guinea regarding gas supplies to a GTL plant.

Syntroleum signed another MOU with PT ELNUSA, a subsidiary of the Indonesian state-owned company Pertamina. The MOU establishes a joint study to identify suitable existing gas reserves for development of a Syntroleum GTL facility.

"The memorandum of understandings we have signed with the Deputy Prime Minister and Minister of Petroleum Sir Moi Avei, of Papua New Guinea, and with PT ELNUSA, show the increasing focus from governments and companies alike on GTL as a means to develop stranded gas reserves," said Jack Holmes, president and CEO of Syntroleum. "Our air-based technology is well suited for gas reserves in the two-to-five trillion cubic foot range which are the targets of the MOUs."

Additionally, Syntroleum licensee Ivanhoe Energy (Middle East) Inc. signed a MOU with Egyptian Natural Gas Holding Company (EGAS) to prepare a feasibility study to construct and operate a GTL plant using the Syntroleum(R) Process. Ivanhoe has announced that EGAS has agreed to commit up to 4.2 trillion cubic feet of natural gas, or about 600 million cubic feet per day for the anticipated 20-year operating life of the proposed project if the study validates the economics of the project. The results of the study could lead to the construction of a GTL plant using Syntroleum's technology. Ivanhoe Energy holds a master license for Syntroleum's GTL technology.

"Recent advances in Syntroleum's catalyst makes the potential for developing a GTL plant in Egypt more attractive," said Leon Daniel, Ivanhoe Energy's president and CEO. "We've been a long-time licensee of Syntroleum's industry-pioneering technology and are ready to move this project forward as quickly as possible."

Ivanhoe Energy and EGAS will enter into negotiations for a definitive agreement for the development of a project if the feasibility study indicates that a GTL plant is economically viable. The study will be performed in collaboration with Syntroleum's engineering staff.

This document includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, statements relating to the impact of the energy bill on Syntroleum and the coal-to-liquids industry, the testing, certification, characteristics and use of synthetic fuels and alternative fuels, the Syntroleum Process and related technologies and products, GTL or coal-to-liquids plants using the Syntroleum Process, government support for the construction and operation of such plants, the economic use of such plants and the continued development of the Syntroleum Process. When used in this document, the words "anticipate," "believe," "estimate," "expect," "intent," "may," "project," "plan" "should," 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 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 and government support for such plants), construction risks, risks associated with investments and operations of GTL and coal-to-liquids plants, 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.

(R) "Syntroleum" is registered as a trademark and service mark in the U.S. Patent and Trademark Office