GTL Exploiting Remote Gas Discoveries IPAA London Oil

GTL: Exploiting Remote Gas Discoveries IPAA London Oil and Gas Investment Symposium Ron Stinebaugh Senior Vice President, Finance July 2005

Forward Looking Statements This presentation includes forward-looking statements as well as historical information. These forwardlooking statements may include statements relating to the Syntroleum Process and related technologies, liquefied natural gas development, the GTL Barge and other gas-to-liquids plants based on the Syntroleum Process, anticipated costs to design, construct and operate these plants, anticipated costs to make products from these plants, the timing of commencement and completion of the design and construction of these plants, obtaining required financing for these plants, the economic construction and operation of gas -to-liquids plants, the value and markets for plant products, testing, certification, characteristics and use of plant products, the continued development of the Syntroleum Process (alone or with partners), anticipated capital expenditures, anticipated revenues and any other statements regarding future growth, cash needs, operations, business plans and financial results. When used in this presentation, the words “anticipate, ” “believe, ” “estimate, ” “expect, ” “intend, ” “may, ” “plan, ” “project, ” “should” and similar expressions are intended to be among the statements that identify forward-looking statements. Although we believe that expectations reflected in these forward-looking statements are reasonable, these kinds of statements involve risks and uncertainties. Actual results may not be consistent with these forward-looking statements. For discussion of these risks and uncertainties we refer you to the risks described under “Risk Factors” in our Annual Report on Form 10 -K. 1

Syntroleum Investment Profile • NASDAQ: SYNM (Common) SYNMW (Warrants) SYNMZ (Warrants) • • Shares O/S (Mil): Warrants O/S (Mil): 55. 2 3. 5 • Market Cap (Mil $): 559. 7 – Date: 6/21/2005 • Float (Mil): • Equity Research: 41. 7 – Foresight Research (Bernie Picchi) – Jefferies (Frank Bracken) – Merrill Lynch (Andrew Fairbanks) • • Management & Insiders: 25% Institutional (1) : 40% Retail: 35% Top Institutional Holders: – – – – PEAK Investments LLC(2) Legg Mason Opportunity Trust Wellington Management Merrill Lynch Investment Managers Southern Fiduciary Group Dimensional Fund Advisors Security Management Company Barclays Bank Plc (1) Excludes PEAK Investments (2) Sits on the Board of Directors, owns 13. 2% Investor Relations Contact: Mel Scott, Director of Communications (918) 592 -7900 2

Syntroleum History Meeting the Requirements for GTL Commercialization • 20 years of comprehensive technology development • 127 US and foreign patents pending and issued • Over $200 million invested in development • Ready for commercial deployment 3

The Syntroleum Process is Air Blown • Unique air-based design eliminates costly oxygen plant to make syngas • Air offers several key competitive advantages: – Safe to operate in marine environment – Ability to compress footprint – “mobility” – Scales down to capture smaller accumulations 4

Technology Development Facilities: Twenty Year Evolution 1985 1986 Catoosa Demonstration Facility (CDF) Cherry Point The Shed 1987 1988 1997 1998 1999 2000 2001 2002 2003 2004 2005 5 Tulsa Pilot Plant (TPP ) Refining Pilot Unit (RPU ) Advanced Reactor Unit (ARU )

Catoosa Plant Demonstrates all Three Process Technologies • 70 bpd demonstration plant • Fully integrated operation with all 3 steps commercially scalable: Syngas, F-T, and Product Upgrading • Commercial catalyst with regeneration, wax separation, full heat transfer internals in FT reactors • Plant will train operators for commercial plants Syntroleum Catoosa Demonstration Facility A Fully Integrated GTL Plant 6

Significant Technology Barriers To Entry • Requires significant time and capital – Invested greater than $200 million over 20 years • Requires three process technologies • New entrants must navigate patents of others • Limited club of companies have GTL technology – – – Syntroleum Sasol Shell Exxon. Mobil Conoco. Phillips BP 7

Abundant Stranded Gas Presents Significant Business Opportunity TOTAL Gas Reserves = 6, 200 Trillion cubic feet (Tcf)1 Stranded Gas = 3, 000 Tcf 2 Europe & CIS 2199 Tcf North America 258 Tcf Middle East 2531 Tcf S. & Cent. America 253 Tcf Africa 486 Tcf Asia Pacific 475 Tcf 1 Trillion Cubic Feet of Gas = 100 Million Barrels of GTL Fuels 1 2 BP Statistical Review of World Energy June 2004 EIA (DOE) International Energy Outlook 2004 8

Plenty of Gas for Both GTL & LNG 9

Market for GTL Liquids is Much Bigger Than the LNG Market • • Middle distillate demand growing at 2. 5% per year worldwide – 4 years growth equals the entire size of the LNG market In 3 years, announced GTL capacity in Qatar is 1/3 rd of current LNG market – which took 3 decades to develop 27 Million Bpd 2. 9 Million BOE/d 1. 5 Million BOE/d 0. 5 Million BOE/d ‘ 01 Methanol 2001 Ammonia 2003 LNG 2003 Middle Distillates Sources: 2001 - American Methanol Association, Fertecon Ltd. , 2004 BP Statistical Review of World Energy 10

Clean Fuels, Easily Sold Syntroleum GTL Diesel – – Can be sold in existing markets – Compatible with existing infrastructure (pipelines, storage terminals, retail pumps) – No sulfur or aromatics – Biodegradable and non-toxic – Performs better than conventional diesel – Valuable blending stock to meet new guidelines Syntroleum Diesel Burns Cleaner Than Regular Diesel 11

Syntroleum Strategy Targets 1 -3 TCF Gas Fields LNG and World scale GTL projects target a few larger fields Syntroleum GTL targets many smaller fields. 1) Gas fields outside of North America 200+ non producing fields world wide with reserves of 1 to 3 TCF 12

Syntroleum’s Niche is Potentially Huge High-graded 40 locations in 15 countries • Uncontracted gas • Proximity to shore • Low delivery cost Billion Barrels ≈ 6. 3 1. 4 Potential from 40 fields ≈ 8 Billion Barrels 13

Air Based Technology Enables Access to Target Fields Modular plants for onshore Barge for swamp and coastal locations Ship-based plants for offshore 14

Syntroleum’s First Project: Aje Field Offshore Nigeria • Previously discovered oil and gas field offshore Nigeria – Two wells successfully tested oil and gas • GTL Technology was enabling factor in acquiring the block • Acquired rights to develop Aje field (September 2004) • Re-processed and mapped geophysical data • Current status: – Drilling permit granted – Assignment of interest approved by the Nigerian Government – Aje-3 to spud in 3 Q 05 15

Aje Field: Potential Reserves Oil – 201 MMBO and Gas – 1. 6 TCF X: 489962 Y: 680716 AJE W. D. : 310’ Surf. Loc. Proposed AJE 3 Depth (ft. ) 2 ☼ X: 488848 Y: 674325 W. D. : 3, 110’ T/Cenomanian 450 ft. high to Aje-2 Max Hydrocarbon column height 450 ft. bo Hy dro T/Turonian 400 ft. high to Aje-2 Max Hydrocarbon column height 662 ft. car Pe rm n. P ea ay bilit Fla g y. F lag PTD -8250 AJE 1 ☼ Turonian: 154 ft. net gas cond pay 37 ft. net oil pay DST #4: 3, 866 bopd + 6. 7 MMcfg/d T/Turonian T/Cenomanian T/Albian Aje-2 Turonian + Cenomanian has additional 480 ft. net wet reservoir sands that could be productive at Aje-3 location SW Arb. Line ‘D’ 1997 3 D, 2004 PSDM Processing Cenomanian: 29 ft. net oil pay DST #3: 3, 473 bopd + 1. 4 MMcfg/d TD 16189 ft MD (11601 TVD) NE 16

Aje Field – Participant Group • Syntroleum acquired 100% working interest and developed the integrated field development concept • Participant group farmed in and pays 90% of first two wells to earn 67. 5% cost bearing interest • Syntroleum pays 10% of the cost of the first two wells to earn a 32. 5% cost bearing interest in the project 17

Early Oil Supports GTL Development 2005 EARLY OIL “A” 2006 2007 2008 2009 2010 2011 Drill Aje-3 Develop Oil Field Leased OIL FPSO Production Develop Gas Field GAS FIELD DEVELOPMENT “B” Production GTL Barge / FPSO PDP / FEED New Build GTL Barge or OIL / GTL FPSO 18

AJE Production Profile 19

AJE: Syntroleum Cash Flows 20

Syntroleum’s Aje Economics NYMEX Strip June 28, 2005 100+% * Gross Revenues less royalties plus bonuses and overriding royalty 21

AJE: Sensitivity to Crude Prices Net to Syntroleum’s Interest 22

Aje Compared to Conventional E&P Projects $11. 52 $10. 70 $7. 81 1 2 3 1 Source: 2003 John S. Herold, Inc. , Herold Global Upstream Performance Review 2 Aje Oil Only - Costs assume $666 Million oil field development cost to produce 200 million bbl of oil reserves, $2. 00/Bbl oil field operations cost and $100, 000/day oil FPSO lease rate for an oil production rate of 40, 000 Bpd. 3 Aje Gas Dev. - Costs assume $186 Million gas field development cost, $900 million capital cost for a GTL/Oil FPSO, $15, 000/day gas field operations cost and FPSO operations cost of $120, 000/Day. It is assumed that Aje contains 74 million bbls of condensate and can produce 116 million bbls of GTL fuels. Assumes production of 10, 000 Bpd of condensate and 17, 000 Bpd of syncrude from GTL. 23

Accelerate Stranded Gas Acquisition Strategy: Securing Multiple Gas Fields • Expand upstream partner’s commitment to Syntroleum – Increase from 1 team to 6 teams seeking stranded gas • Areas of interest: – West Africa – Middle East – South East Asia • Funding the expanded opportunities – $50 million Stranded Gas Venture – Seed money for project acquisition – 80% Syntroleum, 20% investors 24

Multiple Opportunities in Nigeria • Existing independent Nigerian field owners – Currently pursuing nine (9) opportunities • Nigerian National Petroleum Company (NNPC) Equity Gas GTL Venture – Negotiations underway – 41 potential GTL Barge sites – Excess barge energy provides needed electric power source • Open blocks with proven gas discoveries – Participating in bid round – 11 blocks of interest – Have formed three bidding consortiums for specific areas 25

Niger Delta Joint NNPC GTL Barge Study S 3 A 8 Nembe Creek 3. 9 tcf 3. 0 tcf GTL Barge 71 Elpa Flare GTL Barge 69, 70 . 9 tcf Approx. 500 yd Distance to Coastal Waters 12 mi (19 km) 26

Robust Business Development Pipeline • Participating in Algeria Tinhert tender – Proposals must include a 34, 000 barrels per day GTL plant – Consortium is formed • Actively negotiating MOU for an Asian GTL project • Six additional opportunities being developed in the Middle East, Asia and South America 27

Emerging Coal to Liquids Opportunity • United States Government priority – Energy security – $4. 5 million technology Research and Development grant from Department of Defense • Abundant U. S. coal reserves – 270 billion tons recoverable reserves – World’s largest coal reserves • Technology components exist – integration of proven gasification technologies and Syntroleum Fischer-Tropsch required • Numerous unsolicited project opportunities from credible sponsors • New focus on Coal to Liquids • Comprehensive evaluation of opportunities underway 28

Recent Financings Strategy • Raised $80 million via private offerings to Legg Mason Opportunity Trust and Dorset Group Corporation – Limited equity raise in anticipation of future key events – New investors aligned with long term strategy • $89 million cash position at March 31 st • Anticipate less dilutive future capital raises 29

Summary • Syntroleum has developed the three phase process for converting natural gas into ultra-clean transportation fuels • Major opportunity to directly develop stranded gas using Gas to Liquids • Aje project remains on schedule • Increasing traction on multiple specific projects • 2005 financings enabling acceleration of business plan • Emerging Coal to Liquids strategy 30

GTL: Exploiting Remote Gas Discoveries IPAA London Oil and Gas Investment Symposium Ron Stinebaugh Senior Vice President, Finance July 2005