FTO.L Regulatory News (FTO)

16 April 2012

FORTUNE OIL PLC

("Fortune Oil" or the "Company")

Tianjin Gas Group Cooperation Agreement on LNG Import and Supply

Fortune Oil (LSE: FTO.L) focuses on oil, natural gas and resource supply operations and investments, primarily in China. Fortune Oil is listed on the Main Market of the London Stock Exchange.

Highlights

·; New joint venture to procure, import and supply LNG to Tianjin Gas Group Company Ltd ("Tianjin Gas"), the largest gas supplier to the city of Tianjin

·; Tianjin Gas supplies gas to 2 million customers, with 95 per cent market share, and owns 9,000 km of gas pipelines

·; Agreement leverages Fortune Oil's domestic and international gas supply expertise and enhances its position in China's expanding LNG market

Fortune Oil is pleased to announce that it has, through its 100 per cent subsidiary Fortune Oil PRC Holdings Limited, signed an agreement with Tianjin Gas to establish a joint venture that will be responsible for the supply of liquefied natural gas ("LNG") to the city of Tianjin, China's sixth most populous city (population over 12 million). The joint venture company will manage, on a non-exclusive basis, the procurement, import and supply of LNG to Tianjin Gas including securing reliable and competitive overseas LNG supply. Fortune Oil will hold 60 per cent and Tianjin Gas 40 per cent of the equity interest in the joint venture company.

Tianjin Gas is the largest natural gas supplier in Tianjin City responsible for gas supply and operations to 18 districts and counties in Tianjin City with over 95 per cent of the market, 2 million customers and 9,000 km of gas pipelines. Tianjin Gas is one of the main shareholders in the Tianjin LNG Import and Regasification terminal which is expected to start operations in 2013. The terminal will initially import 2.2 million tonnes (3 billion cubic metres) of LNG per annum into China using a floating storage and regasification unit ("FSRU") with the plan to expand the LNG import terminal in Tianjin to a capacity of 6 million tonnes per annum (8 billion cubic metres) per annum from 2015.

LNG is the preferred method for transporting natural gas long distances and is becoming an increasingly important route to supply imported natural gas to China. In 2011 China imported over 12 million tonnes of LNG, principally from the Middle East, Australia and Indonesia, and, with several terminals currently under construction along China's coastline, this is projected to grow to over 30 million tonnes of LNG imports by 2015. With both the Company's and its management's international and domestic experience, Fortune Oil is uniquely placed to expand its LNG operations along the supply chain; from the import of LNG, through distribution and supply, to emerging downstream markets including its use as a fuel for ships and heavy duty trucks and buses.

Mr Tee Kiam Poon, Chief Executive of Fortune Oil, commented:

"Today's announcement is a further example of Fortune Oil's commitment to expanding its natural gas business in China. LNG imports will be a major source of Chinese natural gas supply and this joint venture enables Fortune Oil to utilise its international experience and align itself with the largest city gas company in Tianjin, establishing Fortune Oil in the rapidly expanding LNG supply chain."

For further details:

Background on Fortune Oil

Fortune Oil is a leading independent energy company engaged in the investment and operations of oil and natural gas supply projects in China. With almost 20 years of operating history in China, Fortune Oil has acquired a unique portfolio of high quality oil and natural gas projects across the country and has formed a strong partnership with domestic and international market leaders. Fortune Oil recently started an expansion outside China securing resource projects. Fortune Oil is listed on the Main Market of the London Stock Exchange with its operational headquarters in Hong Kong.