LNG Production Update

13 Sep 2007 07:01

Fortune Oil PLC13 September 2007 13th September 2007 FORTUNE OIL PLC ("Fortune Oil", "the Company") Henan Fortune Green Energy doubles LNG production Fortune Oil is pleased to announce that the production of liquefied natural gas("LNG") has doubled at the Company's joint venture plant in Henan followinginstallation of new compressors. On 18th June 2007 Fortune Oil announced the acquisition of a 51% interest in aHenan LNG and CNG business, now named in English as Henan Fortune Green EnergyDevelopment Company Ltd. ("Green Energy"). Prior to Fortune Oil's investmentGreen Energy was unable to achieve the design production rate due to limitedinlet compression capacity. However, the upgraded plant has now beensuccessfully tested at the design maximum capacity of 150,000 cubic metres perday of LNG and has been producing more than 140,000 cubic metres per day for oneweek. Annual revenue from LNG sales at this production rate would total RMB 130million (£8.5 million). The Green Energy plant was the first commercial LNG production facility in Chinaand Fortune Oil is now the first foreign company to manufacture LNG fromdomestic gas. Green Energy sells LNG to 50 cities and demand continues toexceed supply. Green Energy benefits from a guaranteed gas supply from Sinopec, which operatesthe adjacent Zhongyuan gas field. Sinopec's ability to supply gas over the longterm has been recently enhanced following further discoveries in the Zhongyuanfield as recently announced by Sinopec. 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