Coal Bed Methane Update

12 Apr 2007 07:01

Fortune Oil PLC12 April 2007 12th APRIL 2007 FORTUNE OIL PLC ("Fortune Oil" or "the Company") EP1 and EP2 Wells Commence Pilot Production Fortune Liulin Gas has commenced pilot production at the EP1 and EP2 coal bedmethane wells in Liulin Block. Both wells have been hydraulically fracturestimulated to target coal seam number 8/9. They are now producing smallcontrolled amounts of water; the dewatering phase for CBM wells is expected tolast several months before gas production commences. Coring sample results for EP1 and EP2 were positive. The total coal thicknessfor the three major coal seams was 11.4 metres for EP1 and 8.9 metres for EP2and the gas content averaged 9 cubic metres per tonne, as measured by gasdesorption testing. Injection/falloff testing of permeability, an indicator ofpotential gas recovery rate, also gave encouraging results. In order to meet the PRC's latest regulations for certification of gas reserves,Fortune Liulin Gas is now planning to drill three CBM data wells for analysis ofpermeability and desorbed gas content in each major seam. 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 442 486 This information is provided by RNS The company news service from the London Stock Exchange