Main Web Site : http://www.fortune-oil.com/

CBM Partner Web site : http://www.molopo.com.au

IC Write Up : 21st Apr 2006 IC Write Up

Last Major News : 18th Apr 2006 Coal Bed Methane Project

Prelims : 27th Apr 2006 Prelim Results Link

Latest Broker Forecasts : Oriel 7th April 2006 BUY

Prelim Results and Further Updates due around 25th to 27th April 06

ABOUT FORTUNE OIL

For over a decade Fortune Oil PLC has focused on investments and operations in oil & gas infrastructure projects in China and remains one of the few overseas companies operating oil terminals and supplying natural gas in China, all in partnership with the countrys largest oil & gas companies
Fortune Oil PLC is incorporated in England and Wales and is subject to UK Listing Rules and compliance regulations. The largest shareholders are First Level Holdings Limited, Vitol and major Chinese state-owned corporations.

NATURAL GAS :




China will be the world's largest growth market for natural gas as supplies of this clean and economically attractive fuel become more accessible. Fortune Oil's investments in natural gas are principally through Fu Hua, a joint venture with a PetroChina affiliate, which on-sells gas from the pipelines supplying Beijing. In north China Fortune Oil controls and operates distribution pipelines and city gas reticulation systems as well as facilities to produce and transport Compressed Natural Gas (CNG).
Fortune Oil is now one of the leading providers of CNG in Beijing, providing clean fuel for buses, households and factories. In October 2004 Fortune Oil also became the first overseas company to supply LNG (Liquefied Natural Gas) to users in China, delivering LNG by road to the ancient city of Qufu, the home of Chinese philosophy.

OIL TERMINALS :
Maoming SPM

Fortune Oil established the Maoming Single Point Mooring (SPM) in December 1994 to supply crude oil to Sinopecs Maoming refinery, the largest in southern China. The SPM now delivers 10% of Chinas crude oil imports. It allows VLCCs (Very Large Crude Carriers) of up to 280,000 tonnes to moor and deliver crude oil via a 15 km sub-sea pipeline. The SPM is owned and operated by a joint venture company, Maoming King Ming Petroleum Company Limited, and the other main shareholder is Sinopec Maoming Petrochemical Corporation.
The SPM buoy is commonly used throughout the world for loading and unloading liquids but the Maoming SPM remains the only buoy system in China used for importing crude oil. Fortune Oil believes that the SPM concept is a cost-effective solution for importing crude oil into China as many ports are shallow and will become more congested as demand increases. The only alternative to a buoy system in many ports is to dredge channels for large tankers. The SPM has provided significant cost savings to the Maoming refinery through its low operating costs and VLCC capability.

Products Terminals

The oil products market in China is in the process of deregulation and this will allow a larger role for foreign companies in the import and distribution of refined products. Fortune Oil remains one of the few foreign companies with interests in products terminals.
Fortune Oil and Vitol jointly developed the West Zhuhai Oil Products Terminal at the western entrance of the Pearl River Delta. These facilities came on stream in 1998 and comprise 240,000 cubic metres storage and jetties for receiving and distributing refined products. It is one of the few products terminals in south China able to handle 80,000 dwt ocean-going tankers. A controlling stake was sold to PetroChina which uses the terminal for supply of diesel to south China.
In addition Fortune Oil controls a LPG terminal and supply business (Fu Duo), which has 80,000 customers in Zhanjiang city, and owns storage facilities in Shantou. Prior to the restructuring of the China oil industry in the late 1990s, Fortune Oil was also a major participant in the gasoline retail market and in oil trading. We continue to operate two gasoline stations in Beijing but our trading activities are limited to low-risk domestic trading.

Blue Sky Aviation Oil

The South China Bluesky Aviation Oil Company owns and operates the refuelling infrastructure at 15 airports in south China. These include Wuhan, Guilin and the new Guangzhou Baiyun International Airport. Fortune Oil and BP each hold 24.5% of the joint venture and Beijing-based China Aviation Oil Supply Corporation (CAOSC) holds 51%. The consumption of jet fuel in China is rising significantly, particularly at Guangzhou because of pent-up demand in the Pearl River Delta.
The new Guangzhou airport was opened in August 2004. The construction cost was US$2.3 billion and it is almost four times the size of the old airport in downtown Guangzhou. The new airport is capable of handling 25 million passengers and 1 million tonnes of cargo per year and ranks number three for aviation fuel sales in mainland China.

FTO share price moving around ,some funny trades??

A read on CBM in Shanxi province for you :

http://ns.coalinfo.net.cn/coalbed/meeting/e-meeting/e-shanxi.htm

Anyone know if the Interim results are out this week or next ?

Financial calander
Preliminary Results Announced end April 2006
Annual Report circulated May 2006
Annual General Meeting 21 June 2006
Interim Results Announced September 2006

trend last week or so upwards hit 6 today where are the interims

Can't be long now, financial calander says September.

28 SEPTEMBER 2006


FORTUNE OIL PLC
('Fortune Oil' or 'the Company')

Announcement of Interim Results for 6 Months Ended 30 June 2006

Fortune Oil focuses on oil and gas supply and infrastructure projects in China.
Fortune Oil is quoted on the full list of the London Stock Exchange and has its
headquarters in Hong Kong.


KEY POINTS


Revenues including share of joint ventures increased by 48 per cent to 94.9
million (2005: 64.2 million).


Profit before tax increased by 5 per cent to 3.3 million (2005: 3.2
million) and earnings per share steady at 0.08p.


Gas supply business now in profit as sales volume increased by 240 per cent
to 38 million cubic metres, with operating profit of 0.5 million (2005:
loss of 0.2 million).


First half profits were affected by a lower operating margin and jet fuel
pricing disparity at Bluesky; the government has initiated a compensation
mechanism which has restored the Bluesky margin from the second quarter
onwards.


Fortune Oil entered the upstream gas business by acquiring control of the
Liulin coal bed methane block, with all approvals now in place for the PSC
transfer. Pilot drilling will commence in late 2006.


High Court approval obtained in July 2006 to cancel the surplus in the share
premium account, thereby enabling the Company to pay dividends in the future.



Mr Qian Benyuan, Chairman of Fortune Oil, commented:


'Excellent performance in the gas business was offset by a pricing disparity in
the first quarter at Bluesky. We welcome the new government pricing policies
which assure Bluesky's future margin, with end-users paying for changes in the
price of imported jet fuel. The strong growth in natural gas sales reflects the
increasing demand for clean energy in China. With the recent investment in coal
bed methane, Fortune Oil is now making exciting and crucial steps in becoming an
integrated gas company.'


ENQUIRIES:


Fortune Oil PLC Tel: 00 852 2583 3113 (Hong Kong)

John Pexton, Deputy Chief Executive


Pelham Public Relations Tel: 020 7742 6679 / 07802 442486

Archie Berens


FORTUNE OIL PLC

Announcement of Interim Results for 6 Months Ended 30 June 2006

CHIEF EXECUTIVE'S REVIEW


INTRODUCTION


In the first half of 2006 Fortune Oil's revenues increased substantially as a
result of volume and pricing growth in both the natural gas and aviation
refuelling sectors. Growth in profit was restrained because of lower tariffs
and pricing policy issues in Bluesky, which were resolved by the government from
the second quarter onwards. China continues to show strong economic growth but
with increasing emphasis on environmental issues and the search for cleaner
fuels. Security of supply remains a critical factor both for the nation and for
those energy companies such as Fortune Oil serving the community.



Fortune Oil recently entered the upstream gas business by acquiring control of a
coal bed methane (CBM) block and we expect future CBM production to supply our
gas distribution ventures. The Company intends thereby to create one of the
first independent integrated gas businesses in China. Fortune Oil also remains
one of the few international companies with interests in petroleum terminals in
China and we will continue to exploit investment and supply opportunities
centred around such terminals.



Results for the six months ending 30 June 2006:


Revenues including the Group's share of joint ventures increased to 94.9
million, up 48 per cent from the same period last year.

Profit before tax increased 5 per cent to 3.3 million.

Retained profits (attributable to equity shareholders) were steady at 1.4
million with earnings per share remaining at 0.08 pence.

Sales of natural gas tripled to 38 million cubic metres, which lifted the gas
business into an operating profit of 0.5 million.

An ongoing compensation mechanism was implemented from the second quarter by
the government to protect Bluesky from the effects of excessive international
jet fuel prices. However, a lower operating margin and the fact that no
compensation has been received to date for the first quarter caused a fall in
Bluesky's first half profit.

All approvals for PSC transfer and extension for the Liulin CBM block have
now been obtained and pilot drilling is scheduled to commence in late 2006.

High Court approval has now been obtained in July 2006 for canceling the
surplus in the share premium account, thereby allowing dividends to be paid
in future.


OPERATING REVIEW


Oil Infrastructure


In the first 6 months of 2006 throughput at the Maoming Single Point Mooring
(SPM) was 5.3 million tonnes of crude oil from 23 tankers, a performance similar
to previous periods. For some years the crude oil supply system to the Sinopec
Maoming refinery has been operating close to a practical utilisation limit for
250,000 dwt tankers. This capacity was increased in mid-2006 by making certain
modifications, with local government approvals, to permit the handling of
300,000 dwt tankers, such as the new class of double-hulled tankers. In
anticipation of Sinopec increasing its throughput rate, we agreed to decrease
both the throughput tariff and Sinopec operations charge from January 2006. The
operating profit at the MKM joint venture was 2.9 million (US$5.2 million)
(2005: 3.0 million). There were no lost-time accidents at MKM in this period.


The South China Bluesky Aviation Refuelling joint venture increased volume sales
by 18 per cent to 700,000 tonnes (2005: 591,000 tonnes). There was volume sales
growth at most of Bluesky's 15 airports, but with Guangzhou Baiyun International
Airport again being the major contributor. There were no lost-time accidents
in this period, customer satisfaction surveys continue to show excellent
performance and near-100 per cent equipment availability.


Despite the continuing rise in throughput the net profit fell to 3.3 million
(US$5.8 million), compared with 4.2 million (US$7.8 million) in the same period
last year. From April 2006 the tariff for domestic flights decreased at
Guangzhou and increased at the regional airports, resulting in a lower operating
margin for Bluesky. In addition, a combination of exceptionally high jet fuel
prices and surging domestic demand also affected the operating margin and for
this pricing disparity, the government initiated a compensation mechanism in the
second quarter.


The compensation mechanism obliges domestic airlines to pay a rebate as a jet
fuel surcharge to the aviation fuel supplier. The airlines are allowed to
recover these payments through a ticket surcharge to passengers. This rebate is
fixed every quarter based on the deemed deficit for the entire aviation
refuelling industry in the preceding quarter. This deficit may arise when jet
fuel is imported to supply domestic airlines but sold at a lower price set by
the government. For the third quarter the rebate paid by domestic airlines is
RMB 290 (US$36) per tonne of jet fuel sold. All the details of this
compensation mechanism have yet to be finalised and we still expect to receive
some retrospective compensation for earlier periods. However, the objective is
clear and provides an encouraging signal for the private sector in China: the
end-user should pay for changes in international energy prices, not the energy
distributors.


Throughput at the West Zhuhai Oil Products Terminal joint venture was 1.1
million tonnes for the first half of 2006, down from 1.3 million tonnes in 2005.
The net profit in the period was 1.0 million (US$1.8 million) (2005: 1.4
million). The supply disruptions that commenced in mid 2005 continued into
2006, particularly as the price gap increased between international and domestic
diesel, making it uneconomic for PetroChina to import diesel.


However, the terminal remains a key asset for distribution of diesel and
gasoline on the west side of the Pearl River Delta, the new expansion area for
the world's largest manufacturing centre. New chemical and manufacturing plants
are being planned near the West Zhuhai port and a bridge should eventually link
Zhuhai to Hong Kong. As the oil markets further liberalise, there will be
opportunities for supply and trading based around independent oil products
terminals, of which our terminal is the largest. The joint venture is
continuing to plan for a third phase expansion of 100,000 cubic metres of
chemical storage. Consequently in early 2006 we proposed to raise our stake in
the joint venture to 37 per cent by acquiring Vitol's 18.5 per cent interest.
Under the terms of the agreement, which was approved at an EGM in June, we are
also acquiring Vitol's interests in Fu Duo for a total consideration of 3.3
million (US$5.7 million). The West Zhuhai transaction was completed in August
while the Fu Duo transaction is expected to complete in early 2007.


The Company is in the process of downscaling the Zhanjiang Fu Duo LPG business,
which is no longer core and remains a break-even concern. From January 2006
some operations were contracted out for an annual fee income of US$150,000 and
certain subsidiaries are being sold. There remains considerable value in the Fu
Duo terminal and associated land.


Trading and Retail Operations made a small profit in the first half of 2006.
This year the Company has commenced trading of deregulated products on a low
risk basis, such as the import of bitumen from the Middle East.



Gas Infrastructure


As expected, the Company's natural gas business became earnings-positive in the
first half of 2006, with an operating profit of 0.5 million (US$0.9 million)
(2005: loss of 0.2 million). Sales of natural gas increased by 240 per cent to
38 million cubic metres (2005: 11 million cubic metres). Half of the gas sales
were in the form of CNG (Compressed Natural Gas) from the Tongzhou CNG station,
which is the largest CNG station in the Beijing area. Volume throughput
increased at all the joint ventures. For example the flow of gas through the
Jinshatan spur pipeline increased ten-fold to 3.5 million cubic metres as the
Shanxi Gas Company began to supply the city of Datong. Our principal city gas
companies connected 3,700 new customers in the first half of 2006.


Further growth is expected as both demand and supply grow along the
Shaanxi-Beijing pipelines, the current principal source of our natural gas. Our
infrastructure still has spare capacity to leverage this growth. Meanwhile, we
have strengthened the supervision of the gas business by enhancing the control
systems, particularly in regards to HSE (Health, Safety and Environment) and
financial reporting, and by creating a new management organisation headed by Mr.
Tian Jun, the Group's Chief Operations Officer in China.


Fortune Oil remains the only international company investing in and operating
gas distribution companies in China. However, there are now a number of Chinese
companies competing to acquire and build city gas companies as a result of the
growing demand and the rise in domestic gas prices. We believe that some of
these companies are not adequately assessing the risks of future gas supply.
Fortune Oil has been more conservative in its acquisition policy and instead we
are focused on creating, developing and maintaining an integrated chain of
supply.



Coal Bed Methane


A new focus for the Company is the development of China's vast resources of Coal
Bed Methane (CBM) and the integration of such upstream supplies with our gas
distribution business, particularly in Shanxi Province. Our first investment
has been in the Liulin CBM block, where we have acquired 60 per cent of the
foreign contractor rights in the Production Sharing Agreement (PSC) with CUCBM,
the government body responsible for developing CBM fields with foreign
investors. Our partner is Molopo Australia Limited, an experienced CBM
developer.


CBM is methane gas held in coal seams which can be extracted by drilling prior
to coal mining operations. CBM is similar to the natural gas found in
conventional petroleum reservoirs and can be distributed and sold in the same
way. We believe that this is opportune timing for Fortune Oil as all the
requirements are now in place to make China CBM an attractive investment: there
is a growing market for gas in Shanxi Province as well as a regional pipeline
network, gas prices will steadily rise across the gas chain and horizontal
drilling technology is now having some success in China. Many developers to
date have been unsuccessful in developing China CBM as they lack Fortune Oil's
expertise such as local gas marketing, government relationships and local
management skills. Fortune Oil has now established a professional Chinese CBM
team to develop Liulin and seek other CBM opportunities.


The Liulin block is one of the best CBM blocks in China in terms of known
concentration of gas, as judged by CUCBM, with an estimated in-place gas
resource of 23 billion cubic metres. All government approvals have now been
received for transfer of the PSC rights to a Fortune Oil subsidiary and
extension of the PSC term for a further two years. We intend to commence pilot
drilling operations later in 2006 with the objective of obtaining development
approvals for a section of the block in 2008.


FINANCIAL REVIEW


Revenues including the Group's share of joint ventures in the first six months
of 2006 increased by 48 per cent to 94.9 million (US$169.9 million) (2005:
64.2 million, US$120.2 million). Profit before taxation was 3.3 million, an
increase of 5 per cent over the previous year (3.2 million). The profit
attributable to equity shareholders was steady at 1.4 million (US$2.5 million)
and earnings per share were steady at 0.08 pence.


Capital expenditure of 0.7 million (US$1.2 million) was incurred for purchase
of CNG trucks and construction of pipelines. Trade and other receivables
decreased to 5.6 million (US$10.4 million), the decrease primarily being 1.3
million in respect of MKM and 0.5 million in respect of trading.


The Group had net cash as of 30 June 2006 of 4.7 million (US$8.7 million)
(2005: 4.7 million). Net cash provided by operating activities improved to
2.9 million (2005: 0.4 million). Interest expense for the period was 236,000
(2005: 232,000).


At the June AGM the shareholders agreed to a capital reduction exercise,
permission for which was granted from the High Court in July 2006. Accordingly
a transfer will be made from the share premium account to the retained earnings
account in the second half of 2006. This will enable the Company to pay
dividends in the future.



GOVERNANCE


Corporate Responsibility

As an investor and operator we are very concerned about the safety of our staff
and the impact of our operations on our community, customers and suppliers. The
Company also recognises that certain industries, such as natural gas
distribution, are relatively new in China and the nation's regulations and
monitoring systems are still evolving. The Company is in the process of
enhancing systems for safety monitoring and training and recently carried out an
internal HSE audit for all the principal gas joint ventures. This will lead to
the establishment of a Group HSE Management System based on a continuous
improvement cycle.



Directors

The Board of Directors has been restructured in 2006 with the retirement of some
long-standing directors. Vice-Chairman Mr. Bruce McGowan retired in April and
the Non-Executive Directors Mr. Li De, Mr. Feng Xuechang and Mr. Yang Chunshu at
the AGM in June. In addition Ms. Louisa Ho stepped down as Finance Director for
family reasons but remains on the Board as Non-Executive Director responsible
for corporate governance.


We are very grateful for their dedication to the Company over many years and we
are pleased that they all retain an ongoing interest in the Company's
activities.



PROSPECTS


We are pleased that the government has taken action to protect Bluesky's future
margin. China continues its phenomenal growth in demand and we have confidence
that similar measures will be taken when other pricing tensions develop, so as
to ensure the ongoing supply of fuel to the community. We will continue to
develop investment and supply opportunities in the oil sector, particularly
centred around terminals such as West Zhuhai. However, our principal focus
remains in the gas sector, both in downstream developments and investment in
coal bed methane as future supply for our integrated gas business.


Li Ching

Chief Executive

28 September 2006


CHINA REVIEW

Economy


China's economic growth continues to be phenomenal: GDP increased a further 11.3
per cent in the second quarter, despite dampening measures by the central bank
including higher interest rates. Revenues from China's exports have resulted in
its foreign reserves reaching US$940 billion as of June 2006, six times higher
than those of India. The RMB continues to appreciate, having strengthened 4
per cent against the US dollar since July 2005. Currency reform is now on the
agenda as the country's markets open further, for example convertibility
restrictions will be eased in a trial development area at Tianjin.


The apparent demand for all oil products rose by 7 per cent over the same period
last year, but crude oil imports increased by 15 per cent, reflecting the lack
of growth in domestic oil production. Power production is growing 13 per cent
year on year: 32,000 MW of new power capacity was installed in the first half of
the year, equivalent to almost half of UK's total installed capacity; 88% of the
new capacity is coal-fired, with hydropower accounting for the balance. There
are very few power plants designed to use domestic natural gas, which is now
regarded as a premium fuel for household, commercial and transportation
applications.


Energy supply is becoming an increasingly important issue at all levels of
Chinese society. The NDRC (National Development and Reform Commission) has
reported that at current rates China's proven domestic reserves of oil will last
15 years, gas for 30 years and coal for 80 years. These reserve ratios lag the
world average but do not account for new resource finds and likely increases in
extraction technology and utilisation efficiencies. Indeed there is a growing
realisation that China's energy efficiency is low and that significant power
savings can be made through better technologies, lower waste and better
conservation efforts. For example by 2008 China's fuel efficiency standards for
cars will be above the Federal USA levels.


In order to leap-frog the development pattern of western nations, China will
need to find new approaches for energy supply. The NDRC recently announced that
China will focus on developing a dozen energy industries as a substitute for
petroleum products, in addition to renewable resources. These are principally
biofuels (ethanol is already mandatory in gasoline in certain provinces) and
coal-derived fuels, including coal gasification and coal bed methane. In
addition, there are now many projects aimed specifically at capturing greenhouse
gases, such as waste methane, thereby mitigating global warming.



Energy Pricing


China continues to set the domestic price of transportation fuels at lower than
import prices, with gradual changes so as to prevent economic shocks. The NDRC
recognises that this is not sustainable long term because of the need to import
crude oil and it aims eventually to bring domestic prices in line with
international levels while protecting certain sectors of the community. The
government will pass through international price changes to end-users where they
can, as in the case of the rebate now being paid to Bluesky.


Natural gas prices are now being increased as current prices are well below both
those of both imported gas and competing liquid fuels. Over the past year
prices along the gas chain have increased by 10 to 20 per cent through a
consensus process. City gate gas prices average RMB 1.4 per cubic metre (US$4.9
/MMBTU) but China is now agreeing to import LNG up to 5 years in the future at
prices which imply a city gate price up to 50 per cent higher. As a result
Fortune Oil expects natural gas prices to increase significantly across the
chain, particularly at the well-head for independent sources of gas.


Coal Bed Methane


Coal bed methane is gas found in coal seams and is an alternative source of
natural gas to petroleum reservoirs. Development of CBM is critical for China,
not only to meet the nation's growing energy demands but also for safety and
environmental reasons. This methane gas is the principal cause of explosions in
coal mines and, should it otherwise escape to the atmosphere, could contribute
to global warming.


China has the world's third largest reserves of coal and CBM, after USA and
Russia. According to the PRC government, there are over 30,000 billion cubic
metres of CBM reserves in China, but current production is small, most being by
coal mine companies for safety reasons. The NDRC plans to promote coal bed
methane in its 11th five-year period (2006-2010), for example through new tax
policies. We expect significant development of this industry in the coming
decade, particularly as there is more focus on the beneficial effects for
climate change.


FORTUNE OIL PLC

Announcement of Interim Results for 6 Months Ended 30 June 2006

GROUP INCOME STATEMENT

6 months 6 months 12 months
ended ended ended
30.06.06 30.06.05 31.12.05
Amount in '000 (Unaudited) (Unaudited) (Audited)

Revenue including share of joint ventures 94,912 64,180 143,057
Share of revenue of joint ventures (61,473) (40,547) (98,068)

Group revenue- continuing operations 33,439 23,633 44,989
Cost of sales (28,775) (19,204) (36,851)
Gross profit 4,664 4,429 8,138
Exceptional items - (629)
-
Administrative expenses (2,188) (2,454) (4,617)
Share of results of joint ventures 1,010 1,336 2,810
Profit from operations 3,486 3,311 5,702
Finance costs (236) (232) (454)
Investment income 79 87 156
Profit before taxation 3,329 3,166 5,404
Taxation (290) (267) (544)
Profit for the year 3,039 2,899 4,860

Attributable to
Equity shareholders 1,355 1,350 2,792
Minority interests 1,684 1,549 2,068
3,039 2,899 4,860
Earnings per share
Basic 0.08p 0.08p 0.16p
Diluted 0.08p 0.08p 0.16p



FORTUNE OIL PLC

Announcement of Interim Results for 6 Months Ended 30 June 2006

GROUP BALANCE SHEET

6 months 6 months 12 months
ended ended ended
30.06.06 30.06.05 31.12.05
Amount in '000 (Unaudited) (Unaudited) (Audited)

Assets
Non-current assets
Property, plant and equipment 24,524 24,040 26,747
Investment properties 1,679 1,634 1,800
Goodwill 1,002 1,037 1,074
Other intangible assets 834 1,076 914
Investments in joint ventures 19,025 16,616 19,410
Other investments 109 130 117
Other receivables - 2,219 -

47,173 46,752 50,062
Current assets
Inventories 2,411 1,907 2,151
Trade and other receivables 5,583 8,087 6,272
Cash and cash equivalents 13,135 13,510 11,713
21,129 23,504 20,136
Total assets 68,302 70,256 70,198

Liabilities
Current liabilities
Borrowings 2,168 2,104 1,944
Trade and other payables 9,257 11,298 9,813
Current tax liabilities 186 187 241
11,611 13,589 11,998

Non-current liabilities
Borrowings 6,288 6,662 7,126
Deferred tax liabilities 307 381 336
6,595 7,043 7,462

Total liabilities 18,206 20,632 19,460
Net assets 50,096 49,624 50,738
Shareholders' equity
Ordinary shares 18,361 18,336 18,351
Treasury shares (775) (744) (760)
Share premium account 37,353 37,318 37,344
Translation reserve (690) 517 2,062
Retained earnings (16,630) (19,490) (17,985)
Total shareholders' equity 37,619 35,937 39,012
Minority interests 12,477 13,687 11,726
Total equity 50,096 49,624 50,738


FORTUNE OIL PLC

Announcement of Interim Results for 6 Months Ended 30 June 2006


GROUP CASH FLOW STATEMENT

6 months 6 months 12 months
ended ended ended
30.6.2005 30.6.2005 31.12.2005
Amount in '000 (Unaudited) (Unaudited) (Audited)

Cash flows from operating activities
Profit for the year 3,039 2,899 4,860
Adjustments for:
Share of post-tax results of joint ventures (1,010) (1,336) (2,810)
Taxation 290 267 544
Amortisation and depreciation 1,232 1,165 2,419
Impairment 58 - 158
Profit on disposal of property, plant and equipment - 90 803
Share-based payments - - 63
Investment income (79) (87) (156)
Finance costs 236 232 454

Increase in inventory (405) (268) (413)
Decrease/ (increase) in trade and other receivables 70 (2,440) 2,076
(Decrease)/ increase in trade and other payables (95) 238 (1,859)
Cash generated from operations 3,336 760 6,139
Investment income 79 87 156
Finance costs (236) (232) (454)
Taxation paid (329) (198) (545)
Net cash from operating activities 2,850 417 5,296

Cash flow from investing activities
Dividend received from a joint venture 47 1,397 1,496
Payments for property, plant & equipment (678) (4,078) (7,383)
Payments for intangible assets - - (14)
Payments for investment properties - - (187)
Receipt from disposal of property, plant & equipment - 6 99
Acquisition of business/ subsidiaries - (3,211) (3,273)
Repayment from a joint venture 8 1,512 794
Total cash flows used in investing activities (623) (4,374) (8,468)
Cash flows from financing activities
Proceeds from issue of share capital 4 - 41
Loan from minority shareholders 68 931 478
Dividend paid to minority shareholders - - (2,346)
Decrease in loans (90) (748) (1,194)
Total cash flows (used in)/ from financing activities (18) 183 (3,021)
Net increase/(decrease) in cash & cash equivalents 2,209 (3,774) (6,193)
Cash & cash equivalents at beginning of the period/year 11,713 16,086 16,086
Effect of foreign exchange rate changes (787) 1,198 1,820
Cash & cash equivalents at end of the period/year 13,135 13,510 11,713



FORTUNE OIL PLC

Announcement of Interim Results for 6 Months Ended 30 June 2006

SEGMENTAL ANALYSIS


(a) Business segments
Single point Aviation Natural Gas
mooring facility
2006 2005 2006 2005 2006 2005
Amount in '000

Revenue including share of joint
ventures 5,778 5,731 59,028 38,092 5,164 1,929
Share of revenue of joint ventures - - (59,028) (38,092) - -

Group revenue 5,778 5,731 - - 5,164 1,929

Profit from operations (including
share of results of joint ventures) 2,863 2,970 797 1,020 500 (224)

Finance costs

Investment income

Profit before taxation

Taxation

Profit for the year

Attributable to

Equity shareholders
Minority interests

Oil trading Others** Central Group
& storage* administration


Amount in '000 2006 2005 2006 2005 2006 2005 2006 2005

Revenue including share of joint
ventures 22,881 16,450 2,061 1,978 - - 94,912 64,180
Share of revenue of joint ventures (408) (477) (2,037) (1,978) - - (61,473) (40,547)
Group revenue 22,473 15,973 24 - - - 33,439 23,633
Profit from operations (including
share of results of joint ventures) (315) (211) 46 52 (405) (296) 3,486 3,311
Finance costs (236) (232)
Investment income 79 87
Profit before taxation 3,329 3,166
Taxation (290) (267)
Profit for the year 3,039 2,899


Attributable to
Equity shareholders 1,355 1,350
Minority interests 1,684 1,549


b) Geographical operations


With the exception of operating loss of 345,000 (2005: 296,000) in respect of
central administration in the United Kingdom, all of the Group's activities are
carried out in China and Hong Kong.

The directors are of the opinion that the PRC and Hong Kong form one geographic
segment.


* Includes overheads in Hong Kong/PRC offices.


** Others include distribution.


FORTUNE OIL PLC

Announcement of Interim Results for 6 Months Ended 30 June 2006

GROUP STATEMENT OF CHANGES IN EQUITY

Share Total
Ordinary premium Treasury Translation Retained Shareholders' Minority Total
Amount in '000 Shares account shares reserve earnings equity interests Equity
Group

Balance at 1 January 2006 18,351 37,344 (760) 2,062 (17,985) 39,012 11,726 50,738
Issue of share capital 10 9 - - - 19 - 19
Movement in treasury
shares - - (15) - - (15) - (15)
Currency translation
differences

- Group
- - - (1,412) - (1,412) (933) (2,345)
- joint ventures - - - (1,340) - (1,340) - (1,340)

Profit for the year - - - - 1,355 1,355 1,684 3,039

Balance at 30 June 2006 18,361 37,353 (775) (690) (16,630) 37,619 12,477 50,096



FORTUNE OIL PLC

Announcement of Interim Results for 6 Months Ended 30 June 2006

NOTES


1. Basis of preparation and accounting policies


The interim financial statements for the six months to 30 June 2006 have been
prepared on the basis of the accounting policies set out in the Company's
financial statements for the year ended 31 December 2005. These accounting
policies are drawn up in accordance with International Accounting Standards
(IAS) and International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board. These interim financial statements
have been prepared in accordance with IAS 34 'Interim financial reporting'.


The financial information for the six months ended 30 June 2006 and 30 June 2005
was neither audited nor reviewed by the auditors and does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985. A copy
of the statutory accounts for the year to 31 December 2005 has been delivered to
the Registrar of Companies. The auditors' report on those accounts was
unqualified and did not contain statements under section 237 (2) or (3) of the
Companies Act 1985.


2. Dividends were not paid in any of the periods reported upon and no dividend
is proposed.


3. Earnings per share has been calculated by dividing earnings attributable
to the shareholders by the weighted average number of shares in issue during
the respective periods, as indicated below:

30.6.06 30.6.05 30.12.05
'000 '000 '000 '000 '000 '000

Basic 1,775,612 1,355 1,773,586 1,350 1,774,293 2,792

Share option adjustment 6,732 - 9,252 - 8,618 -

Diluted 1,782,344 1,355 1,782,838 1,350 1,782,911 2,792


4. POST BALANCE SHEET EVENT

On 22 May 2006, Fortune Oil PLC issued a circular to shareholders seeking
approval to cancel all amounts standing to the credit of its share premium
account. This approval was given at an extraordinary general meeting held on
21 June 2006 and approval from High Court was given on 12 July 2006.
Accordingly a transfer will be made from the share premium account to the
retained earnings in the second half of 2006.


5. This report will be sent to all shareholders. Further copies are available
from the Group's registered office, 6/F., Belgrave House 76 Buckingham
Palace Road, London SW1W 9TQ, United Kingdom.

Solid movement upwards. Interims very positive now the bluesky issue has been put to bed, more importantly having read the report fully and considered the enormous domestic market in the region, this is very likely to expand rapidly due to increasing energy demands.
i.e Gas supply business now in profit as sales volume increased by 240 per cent
to 38 million cubic metres, with operating profit of 0.5 million (2005:
loss of 0.2 million).

Very sold results. I don't think we ever need to see sub-6p again but that's only IMO.

Very good results,even better prospects!!!

Huge prospects but a little disappointed that there was only a 5% increas in profits against a 48% uplift in T/O. I have held for 2 years on/off, will this finally be a goodun?

LONDON (AFX) - Fortune Oil PLC, the oil company focused on China, said pretax profits rose by 5 pct to 3.3 mln stg in the first half on revenues up 48 pct to 94.9 mln stg.

The group said its gas supply business is now in profit, with sales volume rising 240 pct in the first six months to 38 mln cubit metres. Gas supply operating profit amounted to 0.5 mln stg, compared with a loss of 0.2 mln.

The good performance from the gas supply business was offset by lower operating margin and jet fuel pricing disparity at Bluesky, Fortune's Chinese jet refuelling business.

The government has initiated a compensation mechanism which has restored the Bluesky margin from the second quarter onwards, the group said.

Dismal sp performance today. What are people playing at after seeing such great results from FTO this week? Why sell now??!!

Note
Person to Person Discharging Managerial Responsibilitypurchase of ordinary shares of 1 pence each at a price of 7.7 pence per share.

FORTUNE COMMENCES CBM DRILLING

07 NOVEMBER 2006


FORTUNE OIL PLC
('Fortune Oil' or 'the Company')

Fortune Commences CBM Drilling

Fortune Oil is pleased to announce that its first coal bed methane well was
spudded in Liulin today, 7th November 2006. This vertical pilot production
well, FL-EP2, is being drilled by Fortune Liulin Gas Company Limited, a
subsidiary of Fortune Oil PLC .....


The Liulin block is located in a promising CBM development area of the eastern
Ordos basin, one of the world's largest CBM resource areas. Coal seam
thickness, depth, gas content and permeability all appear to be highly
prospective. There is substantial data already regarding the coal seam
characteristics and gas content in and around the Liulin block as a result of
over 70 coal coreholes and several CBM exploration wells that have been drilled
in the past. The Company has recently completed a joint study with the Shanxi
Coal Bureau to analyse and map this data, which was then used to optimise the
locations for FL-EP1 and FL-EP2. These two wells should give significant
reservoir and production data to assist in certification of the gas reserves......

So when is the sp going to step on the gas? A return to highs of 10p is surely on the cards?

this baby has huge potential. It groing fast in one of the fastest growing markets. Should pass 10p sonetimes this year. All IMO.

'this year'
has only some 6 weeks to go

are you really expecting a double (more/less) within next six weeks

No rate rise in thext few month.
Housing Construction Plunges in October

What's that got to do with FTO??