TULSA, Okla.--(BUSINESS WIRE)--Jan. 18, 2007--Syntroleum
Corporation (Nasdaq:SYNM) announced today the execution of a new,
definitive license agreement with Marathon Oil Company, a wholly owned
subsidiary of Marathon Oil Corporation (NYSE:MRO). The new agreement
replaces the original Master Preferred License Agreement for
Syntroleum's gas-to-liquids (GTL) technology, and it establishes a
limited master license for Syntroleum's coal-to-liquids (CTL)
technology. This agreement allows Marathon Oil Company the
non-exclusive right to use Syntroleum's Fischer-Tropsch process to
produce synthetic crude. Revenue to Syntroleum under this agreement
would be in the form of royalties based upon actual production volumes
from any licensed plants constructed and operated by Marathon.
As part of this agreement, Marathon terminated and discharged all
of its rights under two promissory notes, in the amount of $21.3
million plus accumulated interest in the amount of $6.3 million,
originally established in connection with the construction of
Syntroleum's Fischer-Tropsch Catoosa Demonstration Facility. Also,
Syntroleum has agreed to pay Marathon two payments of $3 million each
in December of 2008 and December of 2009.
About Syntroleum (Nasdaq:SYNM)
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 Marathon
Marathon Oil Company is a subsidiary of Marathon Oil Corporation
(NYSE:MRO), an integrated energy company engaged in worldwide
exploration, production and transportation of crude oil and natural
gas. Through its ownership of Marathon Petroleum Company, LLC, the
company also refines, markets and transports petroleum products in the
United States. For more information about Marathon, please visit the
company's website at www.marathon.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
CONTACT: Syntroleum Corporation
Gary Gamino, 918-592-7900
ggamino@syntroleum.com
SOURCE: Syntroleum Corporation
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