Liulin Gas Joint Venture

18 Apr 2007 14:27

Fortune Oil PLC18 April 2007 18th APRIL 2007 FORTUNE OIL PLC ("Fortune Oil" or "the Company") Fortune Liulin Gas Joint Venture Fortune Oil wishes to announce that China United Coalbed Methane Corporation Ltd("CUCBM"), the Chinese Government agency responsible for the development of coalbed methane ("CBM") projects in China, has formally reached agreement withFortune Liulin Gas Company Limited ("FLG") on the past costs incurred in theLiulin CBM block. It has been finally agreed that US$2 million expenditure was incurred by Molopoprior to the transfer of its CBM interest in the Liulin block to FLG. Under theProduction Sharing Contract for the Liulin block these past costs will berecovered by FLG in the development phase, which will benefit the FLG cashflow. FLG is a subsidiary of Fortune Oil with 60 per cent held by the Company and 40per cent by Molopo. Molopo is an Australian CBM specialist with particularexpertise in horizontal drilling technology. Its team was enhanced recentlythrough its acquisition of the BHP Billiton CBM team. Fortune Oil will announce its preliminary results for 2006 on 26 April 2007. 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