TULSA, Okla., Sep 07, 2006 (BUSINESS WIRE) -- Syntroleum (Nasdaq:SYNM), a leader in Fischer-Tropsch
(FT) technology, announced today that it has completed the production
of 100,000 gallons of ultra-clean aviation fuel for the military at
the company's 70 barrel per day Catoosa Demonstration Facility (CDF).
In addition, Syntroleum has successfully completed the longest run of
its catalyst testing activity at the company's two barrel per day
pilot plant. As a result, and in addition to the suspension of CDF
operations as previously announced, operations at the pilot plant will
also be suspended beginning October, 2006.
"Having completed the essential work of operating the CDF and the
pilot plant, we are now able to take the prudent step to temporarily
suspend further operations at these facilities. Our continued research
can now be conducted at our lower cost labs," said Jack Holmes,
president and CEO of Syntroleum. "We will maintain these plants in a
state such that if any of our licensees, joint venture partners, or
customers would like to fund further operations for specific purposes,
we can quickly and efficiently restart the facilities to meet their
objectives."
Syntroleum anticipates significant cost savings across all
categories of its current operating structure as a result of the
facility shutdown. Labor reductions related to plant operations and
support, as well as other reductions in staff in order to streamline
operations, will total 46 full-time positions, and the company
estimates it will incur a one-time charge of approximately $0.9
million as a result. The cost savings associated with these events are
expected to reduce Syntroleum's total quarterly expenses by more than
50 percent going forward.
"These operating reductions are a result of company management
taking an intense and disciplined approach to testing and
demonstrating its technology, including catalyst performance and
economics, as well as our cost structure going forward," continued
Holmes. "The cost savings brought about by the successful catalyst
work, suspension of plant activities, and streamlining of operations
will have an immediate and positive impact on our bottom line, as well
as the long-term economics of our Fischer-Tropsch process."
About Syntroleum
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. For more
information, visit http://www.syntroleum.com.
This document includes forward-looking statements as well as
historical information. Forward-looking statements include, but are
not limited to, economics and development of possible Fischer-Tropsch
projects, future capital and operating costs of the company, quality
and performance of Fischer-Tropsch catalysts, potential results for
Syntroleum shareholders, testing, qualities and uses of
Fischer-Tropsch fuels, future programs with the United States
government or it various entities, ownership of intellectual property
rights, execution of definitive agreements, technology development and
market development. 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 failure to execute definitive
agreements, the potential that commercial-scale GTL or coal-to-liquids
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
SOURCE: Syntroleum Corporation
Syntroleum Corporation, Tulsa
Gary Gamino, 918-592-7900
ggamino@syntroleum.com
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