SLH Corp. (SYNM) - From natural gas to crude oil Message Board

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Technology Stocks : SLH Corp. (SYNM) - From natural gas to crude oil

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To: Tokyo VD who wrote (91)	3/15/1998 7:56:00 PM
From: John M	Read Replies (1) of 281

I think the real value in Syntroleum comes from the plant immediately following the first commercial plant - particularly if the Texaco plant is built for 50 MM$. That plant could be the ARCO Prudhoe plant (estimated to cost 10 Billion$). ARCO has long been evaluating LNG for Alaska. My personal opinion - LNG sucks. To hard to handle (refrigerated railcars, trucks), low btu per gallon cost way too much to make. ARCO can put the GTL plant on the slope and ship the syncrude with the rest of the crude from the slope. Pipeline has capacity as oil drops off. To get the $30 price you make pure diesel and sell it in California. California CARB#2 diesel has an extremely low sulfur spec - major refineries spent over 500 MM$ each to meet CARB specs on unleaded and diesel fuels. The diesel from Syntroleum has no sulfur and can blend up other diesels to spec. Shell is selling their Malaysia middle distillates plant diesel in the Los Angeles market at an $8/BBL premium to CARB#2 diesel!! Comes by barge. Please elaborate on what you know about Syntroleum's licensing arrangements. What would one 10 billion$ plant do to their financials? JM

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