Syntroleum announces reorganization on Dynamic Fuels deal

Tulsa, Okla.-based Syntroleum (Nasdaq: SYNM) announced today that it secured financing for its biofuel venture with Tyson Foods (NYSE: TSN), but along with this milestone comes a major reorganization at the company.

Last week, Springdale, Ark.'s Tyson Foods said that it would build a biodiesel plant with Syntroleum in Louisiana as part of their Dynamic Fuels joint venture (see Tyson, Syntroleum to build biodiesel plant in Louisiana).

Syntroleum, which converts natural gas to synthetic liquid fuels, said today that CEO John Holmes and chairman and chief research officer Kenneth Agee both resigned from their posts. The company said the two plan to retire as officers from Syntroleum in December.

The company also said it cut the number of its workers to help meet the costs of the Dynamic Fuels venture. Syntroleum, which currently has 38 employees, said it would reduce its workforce to 22 by the end of the year and eliminate its lab facilities.

Syntroleum named president and COO Edward Roth to the CEO post. Robert Rosene, a current director, was named non-executive chairman of the board.

Outgoing CEO Jack Holmes said, "Gary has an extensive background in the energy industry, and as president and COO of Syntroleum, spearheaded our restructuring and transition into the commercialization of our technology now that our research and development initiatives are complete. We are confident that he will successfully lead Syntroleum going forward."

Partial financing for the company's Dynamic Fuels venture comes from Fletcher Asset Management, which agreed to purchase $12 million of Syntroleum common shares over the next 24 months.

The biofuel plant, which Syntroleum said would be located in Geismar, La., is expected to cost $150 million, with Syntroleum on the hook for half of that cost.

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