FFWD.L Regulatory News (FFWD)

14 Feb 2007 11:36

London Asia Chinese Private Equity14 February 2007 14 February 2007 London Asia Chinese Private Equity Fund Limited("LACPEF" or "the Fund") Investment in Oil & Gas Business LACPEF, the China focused investment fund, announces that it has invested £4.17million in Wan Wei Oil & Gas Technology Ltd ("Wan Wei"), the innovative Chineseprovider of oil drilling technology in the Asia Pacific region. This investmenttakes the total invested to date by the Fund to over £47 million, with all thenet proceeds of the fund raising last March utilised. Founded in 2000, Wan Wei has spent six years developing what they believe is theworld's leading Ultra Short Radius ("USR") horizontal well drilling solution,along with related well completion designs and special tools. The Company's USRsolution is designed to maximise the full potential of re-entry projects, ableto drill wells with arcs of 2.87m and build rates of 20 degrees per meter. Thesolution is used to rejuvenate mature or marginal oil wells, and is considerablycheaper than alternative solutions. The company has signed a number oflong-term contracts with Chinese oil companies covering thousands of wells inChina. The funds invested will be used to support Wan Wei's existing contracts withdomestic clients and finance its overseas expansion, where it is seeking toextend existing contacts into Indonesia and the Middle East. Simon Littlewood, Executive Director of the Fund, said: "As sources of new oilaround the world become harder to find, the focus is on maximising existingdifficult or abandoned wells, for which this technology is designed. Chineseoil producers are being driven to maximize production to meet growing demandfrom Chinese industry and consumers. Wan Wei's patented, cost effectivetechnology is well positioned to take advantage of opportunities not only inChina, but worldwide." For further information please visit www.londonasiafunds.com or contact: John West/Matt Ridsdale Simon Littlewood Hugh FieldTavistock Communications London Asia Capital Collins Stewart LimitedTel: 020 7920 3150 Tel 020 7355 7928 Tel: 020 7523 8000 This information is provided by RNS The company news service from the London Stock Exchange