Fortune Garners Liulin CBM Rights
Fortune Oil PLC said that the Chinese Ministry of Commerce has approved the transfer of the foreign contractor rights in the Liulin block Production Sharing Contract (PSC) for coal bed methane (CBM) to Fortune Liulin Gas Co. Limited. In addition, the ministry has extended the PSC exploration period by two years.
Fortune Liulin Gas Co. Limited is to be owned 60 percent by Fortune Oil and 40 percent by Molopo Australia Limited. All central government approvals are now in place for Fortune Oil to begin a drilling program in order to commercialize the gas reserves in the Liulin block. The expenditure commitment for the company over the next year is US$2.5 million, which will be funded from existing cash resources.
According to Fortune, the Liulin block is one of the best geologically proven CBM blocks in China--with
a potential plateau production of 0.5 billion cubic meters per year. Fortune
Oil is building a professional CBM team and actively seeking other CBM
opportunities in China.
- Fortune Oil Appoints Acting Chief Executive (Dec 02)
- Fortune Liulin Gas Aims for ODP Approval for Chinese CBM Project by 2014 (Sep 06)
- China's CBM Industry: Slow and Steady Progress (Sep 05)
Company: Molopo Australia Limited more info
- Molopo Energy Appoints New Non-Executive Director (Aug 27)
- Molopo Sells Coalbed Methane Assets to PetroChina (Aug 01)
- Fortune Garners Liulin CBM Rights (Aug 01)