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SYNM News Syntroleum Announces Aje Field Update

TULSA, Okla.--(BUSINESS WIRE)--Syntroleum Corporation (NASDAQ:SYNM) announced today that Challenger Minerals Inc., Providence Resources PLC, Energy Equity Resources Ltd, Yinka Folawiyo Petroleum Co. Ltd. (“YFP”) and Syntroleum, have agreed to pursue the drilling of an additional appraisal well (Aje-4) on the Oil Mining Lease (“OML”) 113 off the western coast of Nigeria. Lundin Petroleum and Palace Exploration Company have opted not to participate in the drilling of Aje-4. As a result, YFP, the Nigerian firm which holds the rights to OML 113, and Syntroleum are in active discussions with several additional companies interested in joining the participant group. Under the original joint venture agreement with YFP, Syntroleum and its partners have until April 5, 2007 to commence drilling the Aje-4 well, subject to rig availability. The Aje field was discovered in 1996 with the drilling of the Aje 1 and 2 wells which tested a combined rate of 6255 bpd of oil and 1729 bpd of condensate and 66.7 million cubic feet of gas per day. Since the drilling of the Aje-3 well, the participant group has re-processed the 3-D seismic and conducted a new evaluation of the reprocessed data. This work combined with the results of the Aje-3 well have led to agreement among those participants who have elected to pursue an additional well on the proposed location for the Aje-4 well.

“We are encouraged by current discussions with other experienced companies that may be interested in working with us in Nigeria,” said Jack Holmes, president and CEO of Syntroleum. “Syntroleum, Challenger Minerals, Providence Resources, Energy Equity Resources Ltd and YFP are optimistic about the commercial prospects of Aje-4.”

“We believe the Aje field is a commercial discovery which can be economically developed due to the rapidly improving gas market in Nigeria and the rich yield of condensate and LPG in the gas,” said Tunde Folawiyo, managing director of YFP. “We look forward to working with the existing group and their new partners to expedite the development of this asset.”

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.

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 reserves, possible production rates, drilling results, oil and gas exploration and development plans and operations, oil and gas well characteristics, cost and productivity, negotiations with industry participants and governmental entities, project 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