Fortune Oil Gets Liulin CBM Block Extension Approval

Fortune Oil has announced that it has received approval from China’s Ministry of Commerce for the extension of the exploration period of the Production Sharing Contract for the Liulin CBM block for a further two years to 29 March 2014.

The London Stock Exchange listed company which focuses on oil, natural gas and resource supply operations and investments, primarily in China has also said that its CNG wholesale station in Liulin has been completed and is now awaiting final approval before operations in the second half of 2012.  This station will compress the natural gas collected from the Liulin CBM block for onward distribution.

“We are pleased with the progress we have made in 2012 at Liulin and especially as we are seeing commercial gas flow from our horizontal wells. The extension of the exploration period will enable us to complete the assessment of all the seams and the remaining areas of the block.  Our focus continues to be on completing the development of Liulin and to achieve commercial production,” Tee Kiam Poon, Chief Executive of Fortune Oil said.