Re China Gas Holdings

17 February 2012

FORTUNE OIL PLC

("Fortune Oil" or the "Company")

China Gas Holdings

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 announces the following developments in regard to its investment in China Gas Holdings Ltd ("CGH") which is being made through China Gas Group Limited ("CGG"), a joint venture company between the Company and Mr Liu Minghui.

A private company ("PC") controlled and beneficially owned by Mr Daniel Chiu, a director and substantial shareholder in the Company, has entered into arrangements with lenders to finance the purchase of CGH shares. PC has entered into an agreement to sell any such shares purchased to CGG at cost as and when called upon by CGG.

CGG will indemnify PC against all costs associated with the purchase and financing of any CGH shares acquired as and when these are transferred to CGG and any losses arising on the CGH shares acquired by PC.

PC is deemed for the purposes of the Hong Kong Code on Takeovers and Mergers ("the Code") to be an associate of CGG and any purchases made by it of CGH shares will be announced in Hong Kong if and as required by the Code.

For further details:

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 over 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.