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.

27 June 2013



Fortune Oil PLC

("Fortune Oil" or "the Company")



Extension of Final Date for MOFCOM Consent





On 17 December 2012 the Company announced that it and Wilmar International Limited, the 15% shareholder of Fortune Gas Investment Holdings Ltd ("FGIH"), had entered into a conditional contract to sell their entire interest in FGIH to China Gas Holdings Ltd. Completion of the transaction was subject to certain conditions, including regulatory approval from MOFCOM (the anti-monopoly bureau of the Ministry of Commerce of the PRC), being satisfied by 30 June 2013 (or such later date as agreed in writing) (the "Long Stop Date"). Given additional time is required for the fulfilment of the MOFCOM regulatory approval condition, the Company, Wilmar International Ltdand China Gas Holdings Ltd have entered into a supplementary agreement in order to extend the Long Stop Date to 30 September 2013.

and also is nt it a bit late going 3 days before to mention it

If you had contact with Chinese, you wouldn't ask this question.
The chinese verbs do not have time in it, so the culture

ROVERGT1:
30th June stop date was issued with the original rns on the 17th December 2012.

oh sorry my mistake

CGH expect MOFCOM approval in July and are already integrating Fortunes Gas business with its own.
They are very very happy with Fortunes progress and its gas performance is ahead of expectation.
More importantly the performance of the gas business is better than the milestone targets set out
under the terms of the takeover and should ensure Fortune secures the top price from the sale.
Deal done imho and massive re-rating of Fortunes share price is just around the corner.

yeah it is this annual results briefing where they mention fortune gas at 9.15 and they hope to get approval in july here is the link

http://media.openbriefing.com/hke/384/FYR13_260613/MC/index.html

the other positive point he mentions is "we have already started intergrating the business" and" if you recall they are doing very well and have a 200 million net guarantee" and also mentions they are doing better than expected

ROVERGT1 the presentation was very positive and the points regarding FTO should
dispel any doubts about future prospects,i have been topping up my holdings,the SP is due for a re-rating.

Aside from the CGH sale...we should have an update about the Liulin gas asset..
We need a really positive rns this month...
just not sure Mofcom will deliver it.....

(Infocast News)

During a post-result NDR for China Gas Holdings Limited (00384) hosted by Macquarie, China Gas delivered a positive message on its future business strategy and emphasized its focus on gas distribution/network expansion and CNG/LNG refuelling stations as future growth drivers, the brokerage says, rating China Gas "Outperform" and giving the stock a price target of HK$9.8.

According to China Gas chairman Liu Minghui, China Gas will pass through RMB0.4/cubic metre on existing volume to non-residential users on July 10. Of 125 projects under commercial operation, about 70 projects in Guangdong, Guangxi, Fujian, Liaoning, etc. will not be impacted by the gas price hike. Overall blended gas price increase will be less than RMB0.4/cubic metre, Macquarie says in its research report. Further, the brokerage believes the impact on the demand side is minimal for China Gas as the majority of its industrial users have low elasticity of gas demand and there is still a long list of new factories waiting to be connected.

According to China Gas' management, China Gas has started business cooperation with Sinopec on a small scale. However management is cautious about a share placement to Sinopec and will only agree when the injected assets could add more value than offsetting the earnings dilution.

China Gas' management is actively seeking opportunities to downsize its upstream assets, which could save at least HK$200 million finance expenses and bring in a one-off gain, Macquarie says, expecting China Gas' LPG business to move into the black in fiscal 2014.

Ex-Divi today

Still a big seller out there...

CGH sp at close hk$ 8.49.

DART Energy has sold its Chinese coal-seam-gas prospects to a unit of China Oil HBP Science and Technology for about $US20.8 million ($22.8 million).
The sale of a 50 per cent stake in Fortune Liulin Gas is conditional on Chinese government approval, which Dart said today it expected to obtain within two or three months.

Earlier this year, Dart said it was narrowing its focus to its UK assets following months in which its share price languished.


(theaustralian.com.au, Jul 15, 2013)

Good post thanks...

From another board.:- Fortune's current market cap is approx £ 155m

It's 7.5% investment in China Gas Holdings ( CGH) is currently valued at £ 260m

It's share ( 85%) from the sale of the gas business is $ 340 or £ 260 m

Its share of the Joint Venture bank facility of $ 180 m ( not all drawn down and only $ 60m
to be repaid from sale of the gas business) is max c $ 150m

Therefore worst case scenario on sale is Fortune Oil gets NETT c $ 190m or £ 145m after
all JV debt.

Remaining businesses including Iron Ore mine conservatively valued at £ 50m after debt

Accordingly post gas sale the total valuation of Fortune Oil should look like below

1 Existing shares in CGH £ 260 m
2 Nett proceeds from gas business £ 145 m
3 Remaining businesses £ 50 m
_______
Total £ 455 m
_______

This valuation suggests a share price nearer 30 p

It should also be noted that Fortune Oil has the right to appoint 2 Directors including
the Managing Director to the Board of China Gas Holdings following gas business sale.

I hope I have got the figures right but the current share price must represent great value
and should move up sharply after MOFCOM approval of the deal IMHO
BEST TO ALL

Actually...they have the right to nominate 2 directors to the list of directors of CGH but that is different from them been nominated...
If you read the CGH version, that is how it is read....

According to the disclosure of information on the HKEx website, BEIJING ENT (00392.HK) increased holding in CHINA GAS HOLD (00384.HK) by 28.15 million shares at the average price of $8.21 last Thursday (11 July), involving an aggregate amount of around HK$230 million. After the increase in holding, BEIJING ENT (00392.HK) became the single largest shareholder of CHINA GAS HOLD, with shareholding increased from 20.98% to 21.57%.

BEIJING ENT (00392.HK) bought 22.01% share capital of CHINA GAS HOLD (00384.HK) from BE Group, the ultimate controlling shareholder, at $7.8 apiece, representing 10.3% discount to last closing price.