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.

The gas sector in the Chinese economy will continue to grow regardless, as more people are connected to the grid. The local economy will grow quicker as local people improve there standard of living. That is a fact that has been repeated around the globe in the last 50 years. The local economy has expanded rapidly due to overseas investment in cheap local labor..

Chinese people are strong savers at this point in time.Not too long a go they were starving to death in the countryside under the so called "culture revolution" So they are right to be cautious about spending but it is changing. They like to be warm when it is cold outside. So spending in the local economy is set to rise after years of export driven rises cynic... Their domestic economy is in transition to taking the strain from exports.. they are getting a bit more confident....

None of which is feeding into FTO at the moment...:)

『 Changchun's Gas Price Rise 』 [2013-4-2]

Local officials of Changchun in northeast China's Jilin Province have said the natural gas price rise in the city was "only an individual case" that did not contradict the recent statement of National Development and Reform Commission (NDRC), which denied substantial gas price hike, The Beijing News reports.

Starting from April 1, the natural gas price rose from 2 yuan to 2.8 yuan per cubic meter, while the coal gas price rose from 1.5 yuan to 2 yuan per cubic meter, according to an announcement from the Changchun municipal government.



Shao said the latest price rise was due to the national adjustment in the ex-works price of natural gas in 2010, as well as the rising costs of the reconstruction project to replace coal gas with natural gas in recent years.

Shao said Changchun applied the price adjustment two and a half years after the national adjustment, considering the economic and social development of the city as well as citizens' ability to bear it.

Moreover, the city had already held a public hearing on the decision on February 25.

According to The Beijing News, several Chinese cities, including Tianjin and Nantong, also planned to hold public hearings on rising natural gas prices, which might caused gas price increases in other cities.

Some analysts believed that the price increases would be a necessary trend in the future.

(english.cri.cn Apr 2.2013)

I think the final year results are due out around the last week in April.....
Not sure if we will see a rally this year to be honest...
A bit to much confusion hanging around....

We might get a special divi this year,with all the money sloshing around,its a nice thought.

Knowing this board, I just can't see that happening..
The deal is not final yet and still awaits final approval from the Chinese authorities..
So no money just yet...but it would be nice to hear something positive about the direction it is going in..
Still big sells at this low level....

Dropped back to support, lets hope it holds, I see no reason why it shouldn't.

A little mention in the papers this weekend...
Nothing spectacular..

Ruthbaby, what paper was that?was it good news?
Good start today,found a support level.

Just really an update on their new year tip....
http://www.thetimes.co.uk/tto/business/columnists/article3732393.ece

Thanks Ruthbaby.

Disco light going on with the offer price.....7.91p...7.92p and on and on and on.....

I think L&G are still selling into this market..
I have noticed some very large sells going through regularly over the last 6 trading days...
Don't think they need to inform market now that they are below a certain level..so it could be on going for some time....
Was hoping they would have sold a block to someone by now!!

Will Have news/figures shortly.

I think they have almost finished.

Share price is reacting to trades now. Book is changing too.

ahoj:
How so..could you explain please..

Sell price was never above 8.05 over the last ten days.
There are large number of buyers in buy side pushing the price to 8.2.

Today is the first day price shows improvement after US opened. I suspect L&G agreed selling at an specific price, so the hangover cleared. We should see large trade at the close, probably around 7.6p to 8p.

Thanks for that..
It will make for an interesting UT.
I was surprised to see buying at 8.10p today for the first time in long time!!1
But buyers will still be reluctant to pay more then 8.20p for some time I suspect..

Many shorts have to be covered. If combined with a good news, we see 10p in a few seconds.

That sounds good ,ahoj,been buying this week sub 8p

That sounds good ,ahoj,been buying this week sub 8p