Syntroleum, Advantage and ENAP to Pursue Gas-to-Liquids Project in Chile

    SANTIAGO, Chile, Aug. 29 Syntroleum Corporation
announced today that it has signed an agreement with Empresa Nacional
del Petroleo (ENAP), the national oil company of Chile, and Advantage
Resources International, headquartered in Denver, Colorado to conduct a
project assessment study for a 10,000 barrel per day synthetic fuels plant to
be located at the ENAP-owned Cabo Negro Industrial Park near Punta Arenas,
Chile.  The proposed project would utilize currently available natural gas
delivered by pipeline from fields in Argentina and Chile.

    ENAP has expressed its intent to purchase and transport the fuels produced
at the plant directly to consumers in Santiago, Chile.  Because Santiago lies
in a central valley between two mountain ranges, it experiences some of the
world's most serious air quality problems.  The government of Chile has
declared a national priority for establishing tougher fuels emissions
standards to improve air quality in the "Valle Central."

    According to Ron Roberson, a spokesman for Syntroleum, the study should be
completed before the end of this year, since much of the groundwork has
already been accomplished from previous site visits and surveys by
Syntroleum's engineering and project development staff.  The Cabo Negro
Industrial site already hosts a large methanol plant operated by Methanex
Corporation (Canada), a natural gas liquids (NGL) fractionation plant operated
by ENAP, warehousing and construction yards for offshore oil and gas projects
and marine export terminals that are already scheduled for future expansion.

    If the study confirms expectations of the parties regarding the viability
of the project, ENAP and Advantage have expressed interest in obtaining a site
license for Syntroleum's proprietary gas-to-liquids (GTL) technology and
commencing front-end engineering and design (FEED) for the plant during the
first quarter of 2002.  A completion schedule for the project will be
established when the final decision is made by the owners to proceed with
construction.

    Advantage and ENAP have been exploring for oil and gas in the Tierra del
Fuego basin for over 12 years.  In 1991, they discovered a potentially
significant gas field while looking for oil.  The absence of a local market
for the gas precluded further delineation drilling and development of the
find.

    "This is one of several potential GTL projects that we are pursuing in
Latin America," stated Mark Agee, president and COO of Syntroleum.  "We are
eager to complete the assessment study and move this opportunity closer to
becoming a firm project."

    "We believe the advent of gas-to-liquids technology provides us with a
viable alternative to traditional gas marketing," stated Dr. James Dean,
president of Advantage Resources.  "This not only gives us the possibility of
finally monetizing this asset, but also provides additional impetus to explore
for more gas in the basin.  Chile is a logical place for this first step to be
taken due to the government mandate to introduce cleaner diesel fuel into the
Santiago area."

    Advantage Resources International is a privately held oil and gas
exploration and production company headquartered in Denver, Colorado.  Founded
in 1960, the company has been active in South America since 1985 and maintains
offices in Lima, Peru, Buenos Aries, Argentina and Santiago, Chile.

    Syntroleum Corporation, headquartered in Tulsa, Oklahoma, licenses its
proprietary process for converting natural gas into synthetic crude oil and
transportation fuels.  The process is designed for application in plant sizes
ranging from 2,000 barrels per day to more than 100,000 barrels per day.
Current licensees include the ARCO (now BP), Enron, Ivanhoe Energy, Kerr
McGee, Marathon, Repsol-YPF, Texaco, and the Commonwealth of Australia.  Using
its proprietary technology and in partnership with others, the company plans
to build GTL plants with significant equity participation by Syntroleum in a
number of global locations.