Fortune Oil Reports Statistics on the World’s Natural Gas Market

Fortune Oil Reports Statistics on the Worlds Natural Gas Market China is the world's second largest oil market and is also the largest growth market for natural gas. The demand in China for this clean and economically attractive fuel has far exceeded all expectations, particularly for use in households, factories and vehicles. China has large domestic reserves of conventional gas but it has been only over the past decade that the necessary field developments and pipeline infrastructure have been installed to bring this gas to the major cities. China is also beginning to import gas as Liquefied Natural Gas (LNG) and is planning to import piped gas from its neighbors. However, a vital future source will be the vast domestic reserves of unconventional gas such as coal bed methane (CBM). Fortune Oil's fuel strategy is to create an independent integrated gas company: developing our own resources of unconventional gas; sourcing gas from other producers; distributing this gas through pipelines, LNG or CNG; and then retailing this gas to end-users through our city gas companies or CNG vehicle stations. We already have many necessary pieces of the jigsaw in place, such as China's first LNG production plant, the largest CNG station in Beijing and a coal bed methane block in Shanxi Province. Currently there are no private or foreign companies in China with a regionally integrated gas business. Fortune Oil's investments in gas were initially through Fu Hua, an 80% owned joint venture with the PetroChina affiliate which operates the pipelines supplying Beijing. Gas from these trunk pipelines is supplied by our spur pipelines or our CNG operations to our city gas companies. In 2007 we acquired a 51% interest in Henan Fortune Green Energy Development Company which operates an LNG manufacturing plant, CNG retail stations and a fleet of LNG/CNG tankers and has a gas supply guarantee from Sinopec. In Shanxi Province we have a joint venture with the provincial government as a platform for collecting and marketing coal seam gas. Shanxi has one of the world's largest sources of coal and coal seam gas, including the coal bed methane block controlled by Fortune Oil at Liulin. The government has a clear policy of encouraging private and foreign investment in the extraction and proper utilization of gas from coal seams, particularly as there is increasing emphasis on improving coal mine safety, utilizing domestic clean energy resources and protecting the environment. Fortune Oil's gas business is held under the wholly owned Fortune Gas Investment Holdings Limited ("Fortune Gas"). In November 2008 Wilmar International Limited, a major Singapore listed company, invested US$36 million to acquire new shares in Fortune Gas representing 15 per cent of the enlarged capital. Fortune Oil PLC focuses on investments and operations in oil and gas supply and infrastructure projects in China. Fortune Oil is listed on the London stock exchange and our operational headquarters is in Hong Kong. Fortune Oil has a unique portfolio of oil and gas supply infrastructure in China. The Company is now developing coal bed methane reserves which will ultimately integrate with our gas supply business and benefit China's environment. Fortune Oil PLC is an investment holding company. The Company is engaged in focusing on oil and gas supply and infrastructure projects in China. It operates in six segments: Natural Gas, Single point mooring facility, Aviation Refueling, Trading, Products Terminal, and Others. Its subsidiaries include Maoming King Ming China Petroleum Company, Beijing Fortune Huiyuan Gas Company Limited, Luquan Fu Xin Gas Company Limited, Beijing Fuhua Dadi Gas Limited, Shuozhou Fu Hua Natural Gas Limited, and Xinyang Fortune Gas Company Limited. The Company’s subsidiaries are engaged in Construction and operation of single point mooring facility; Trading in petroleum products and investment in retail petrol stations; Provision of piped natural gas, and Exploration and production of CBM. During the year ended November 16, 2009, the Company acquired 26.1% of Fortune Liulin Gas Company Limited and it became Company’s wholly owned subsidiary.