Second CBM Pilot Well

22 Jan 2007 07:02

Fortune Oil PLC22 January 2007 22 JANUARY 2007 FORTUNE OIL PLC ("Fortune Oil" or "the Company") Fortune Completes Second Pilot Well Fortune Oil is pleased to announce that the Fortune Liulin Gas subsidiary hascompleted the drilling of its first two pilot production wells for coal bedmethane ("CBM") in the Liulin block, Shanxi Province. Exploration productionwell EP2 was drilled to a total depth of 1,166 metres and EP1 to 615 metres,both located in the north-central sector of the block. The drilling hasconfirmed the presence of thick coal seams, totalling 19 metres. The targetseam for CBM production, the adjoining seams 8/9, has a large thickness of 7.4metres at EP2 and 5.4 metres at EP1, which indicates that this target seam couldhave a significant production potential. During the drilling process core samples were taken of the major coal seams, theresults of which should be available by end March. The next step is to test thecoal seams for permeability and to fracture seams 8/9 to commence pilotproduction testing. We will continue to inform shareholders of the results fromthese pilot wells. 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