Liulin Coal Bed Methane Update

FORTUNE OIL PLC

("Fortune Oil" or the "Company")

Liulin Coal Bed Methane - Construction of Gas Gathering System Commences

Fortune Oil (LSE: FTO.L) focuses on oil, natural gas and resource supply operations and investments, primarily in China. Fortune Oil is listed on the Main Market of the London Stock Exchange.

Fortune Oil is pleased to announce continued progress relating to its Liulin Coal Bed Methane ("CBM") business:

·; Contract for construction of the gas gathering system approved and construction commenced

·; The gas gathering system will connect the field production to the Company's existing compressed natural gas ("CNG") wholesale station allowing sales to commence in 2013

·; Field gas rates continue to increase: currently approximately 28,000m3/day

The Fortune Liulin Gas ("FLG") Board has approved the construction of the field gas gathering system, the nodal compression station and the main export product trunk-line at the Liulin CBM project in Shanxi Province. A contract has been entered into for the first phase of construction. Mobilisation of contractors and equipment is now underway and construction is scheduled for completion by mid-2013.

On completion, this infrastructure will connect the production wells across the block to the existing CNG wholesale station providing a route to the market and initial gas sales from the Liulin block.

Production rates from the field have continued to improve as the wells are dewatered. Currently the best performing well in the field has achieved a gas production in excess of 11,000m3/day and total field production is currently approximately 28,000m3/day.

Mr. Tee Kiam Poon, Chief Executive of Fortune Oil, commented:

"We are pleased with the progress we continue to make in 2012 at Liulin especially as we are seeing gas flow at commercial levels from our horizontal wells. The decision to move to the construction phase has now been taken with our goal to achieve commercial gas sales in 2013. Our achievements at Liulin continue to position the Company as a significant developer of unconventional gas, in line with China's natural gas strategy, and pave the way for commercial gas sales and a new source of revenue for the Company."

Background on Fortune Oil

Fortune Oil is a leading independent energy company engaged in the investment and operations of oil and natural gas supply projects in China. With almost 20 years of operating history in China, Fortune Oil has acquired a unique portfolio of high quality oil and natural gas projects across the country and has formed a strong partnership with domestic and international market leaders. Fortune Oil recently started an expansion outside China securing resource projects. Fortune Oil is listed on the Main Market of the London Stock Exchange with its operational headquarters in Hong Kong.

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