FTO.L Regulatory News (FTO)

10 Jan 2008 07:01

Fortune Oil PLC10 January 2008 10 JANUARY 2008 FORTUNE OIL PLC Liulin CBM Developments Fortune Liulin Gas has recently installed larger water pumps in the pilotproduction wells EP1 and EP2 so as to increase the dewatering rate, and thewater level is now falling more quickly in the wells. Currently the gasproduction is small but is expected to increase once the water level pressurefalls below the desorption pressure over the next month. Three other pilotproduction wells are in progress. Production data from these wells will providesupporting evidence along with the substantial body of geology data forcertification of reserves. On 9 January 2008 Verona Development Corp, a company listed on the TSX VentureExchange, announced that it had sold to Royal Dutch Shell the majority equityposition in a production sharing contract for CBM exploration in the NorthShilou block. This block adjoins the southern border of the Liulin block. TheNorth Shilou and Liulin blocks are 150 km south-east of the Changbei field whereShell is already producing natural gas in a production sharing contract withPetroChina. Shell's intention to explore the region neighbouring Liulinhighlights the potential for gas extraction in this part of Shanxi Province. Enquiries: Fortune Oil PLCJohn Pexton - Deputy Chief Executive Tel: 00 852 2583 3113 (Hong Kong) Pelham Public RelationsArchie Berens Tel: 020 7743 6679 or 07802 442 486Robert Koh Tel. 020 3170 7444 This information is provided by RNS The company news service from the London Stock Exchange