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.

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.

CHINA GAS HOLD (00384.HK) Disclosure of Interests
Disclosure of Interests
Date Substantial Shareholder
Average
price
per
share Event No. of shares
bought/sold/
involved Quantity
Change
Rate Shares
Interested Issued
Share
Capital
(%)
2013/07/18 Beijing Enterprises Group (BVI) Company Limited 9.004 103 (L) 3180000 0.066402 1054088132(L) 22.01(L)
2013/07/18 Beijing Enterprises Group Company Limited 9.004 103 (L) 3180000 0.066402 1054088132(L) 22.01(L)
2013/07/11 Beijing Enterprises Group (BVI) Company Limited 8.210 103 (L) 28150000 0.587805 1033052132(L) 21.57(L)
2013/07/11 Beijing Enterprises Group Company Limited 8.210 103 (L) 28150000 0.587805 1033052132(L) 21.57(L)
2013/07/04 Liu Ming Hui 2.100 124 (L) 100000000 2.088116 1011550000(L) 21.12(L)
2013/04/10 Chiu Tat Jung Daniel 3.831 117 (L) 207968000 4.550996 702446000(L) 15.38(L)
2013/04/10 Liu Ming Hui 3.831 123 (L) 207968000 4.550996 1011550000(L) 22.15(L)
2013/04/10 China Gas Group Limited 3.831 117 (L) 207968000 4.550996 702446000(L) 15.38(L)
2013/04/10 Fortune Max Holdings Limited 3.831 102 (L) 207968000 4.550996 0(L) 0.00(L)
2013/04/10 First Level Holdings Limited 3.831 117 (L) 207968000 4.550996 702446000(L) 15.38(L)
2013/04/10 Fortune Oil PLC 3.831 117 (L) 207968000 4.550996 702446000(L) 15.38(L)
2013/04/10 Joint Coast Alliance Market Development Limited 3.831 117 (L) 207968000 4.550996 702446000(L) 15.38(L)
2013/02/28 Chiu Tat Jung Daniel 103 (L) 75000000 1.641355 702446000(L) 15.38(L)
2013/02/28 Liu Ming Hui 121 (L)
N/A 75000000
N/A 1.641355
N/A 1011550000(L)
0(S) 22.15(L)
0.00(S)
2013/02/28 Beijing Enterprises Group Company Limited 6.740 103 (L) 75000000 1.641355 964902132(L) 21.12(L)

CONNECTED AND DISCLOSEABLE ACQUISITION AND
AN ISSUE OF NEW SHARES
Financial Adviser to Beijing Enterprises Holdings Limited

THE ACQUISITION
The Board is pleased to announce that on 29 July 2013, the Purchaser, a direct wholly-owned subsidiary of the Company entered into the Sale and Purchase Agreement pursuant to which the Purchaser agreed to acquire and the Seller, a direct wholly-owned subsidiary of BE Group, the ultimate controlling shareholder of the Company, agreed to sell the Sale Shares, representing approximately 22.01% of the issued share capital in China Gas at a consideration of HK$7.80 per Sale Share, aggregating a total Consideration of HK$8,221,887,430, to be settled by the payment of the Cash Consideration in the amount of HK$2 billion and the issue of 113,125,226 Shares in the capital of the Company as Consideration Shares.
As the highest of the applicable percentage ratios stipulated under Rule 14.07 of the Listing Rules for the Acquisition exceeds 5% but is less than 25%, the Acquisition constitutes a connected and discloseable acquisition of the Company, and as part of the Consideration will be settled in Consideration Shares, the Acquisition also constitutes a share transaction. Given the foregoing, the Acquisition is subject to the reporting, announcement and independent shareholders' approval requirements under Chapter 14 and 14A of the Listing Rules. BE Group, the ultimate controlling shareholder of the Company, and its associates will abstain from voting at the EGM to be convened to, among other things, consider the Acquisition. As at the date of this announcement, BE Group is interested in 675,030,288 Shares, representing approximately 57.86% of the issued share capital of the Company.
An Independent Board Committee comprising all the independent non-executive Directors will be established to advise the Independent Shareholders on the Acquisition. An independent financial adviser will also be appointed to advise the Independent Board Committee and the Independent Shareholders on the Acquisition. No member of the Independent Board Committee has any material interest in the Acquisition.

Beijing Enterprises to Buy China Gas Stake From Parent
By Aibing Guo - Jul 30, 2013 7:22 AM GMT+0100
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QUEUE
Beijing Enterprises Holdings Ltd. (392) said it will pay HK$8.22 billion ($1.1 billion) to its state-owned parent for a stake in China Gas Holdings Ltd. (384), a supplier of natural gas to 184 Chinese cities.
The company will pay HK$7.80 a share to Beijing Enterprises Group for 22.01 percent of China Gas, Hong Kong-based Beijing Enterprises Holdings said today in a statement. That’s 12 percent less than yesterday’s closing price of China Gas.
Following the transaction Beijing Enterprises Holdings will be the biggest shareholder in China Gas, according to data compiled by Bloomberg. The parent increased its stake in China Gas last year after China Petroleum & Chemical Corp. (386) and ENN Energy Holdings Ltd. (2688) made a takeover offer for China Gas.
“With this investment in China Gas, the company expects to strengthen its market position in the China natural gas industry,” Beijing Enterprises Holdings said in the statement. “The company and China Gas can mutually benefit from the synergies created by their collaboration.”
Beijing Enterprises Holdings dropped 4 percent to HK$53.10 as of 2:08 p.m. in Hong Kong trading, while the benchmark Hang Seng Index gained 0.3 percent. China Gas rose 0.2 percent to HK$8.85.
Beijing Enterprises Holdings will pay its parent HK$2 billion in cash and issue 113 million new shares at HK$55 a piece, it said. Morgan Stanley is advising Beijing Enterprises Holdings.
The purchase needs approval from the company’s independent shareholders, Beijing Enterprises Holdings said. The parent, which holds about 58 percent, will abstain from voting.
To contact the reporter on this story: Aibing Guo in Hong Kong at aguo10@bloomberg.net

South China Morning Post. Barely a year since his reinstatement at the helm of China Gas Holdings after a prolonged board power struggle, Liu Minghui again faces the tricky task of handling a prospective fight over management control, balancing the interests of major stakeholders in the firm he co-founded in 2002.

Liu, through his own investment and purchases via China Gas Group - a joint venture between Liu and London-listed energy firm Fortune Oil - has since 2004 been the largest shareholder of China Gas, the nation's largest city natural gas distributor by number of projects.

Liu Minghui (right)Liu, who became chairman in April, has raised his stake to 21.1 per cent from 13.4 per cent in the past 30 months, largely via the formation last year of the joint venture partly backed by Daniel Chiu Tat-jung, a son of tycoon Deacon Chiu Te-ken.

State-owned Beijing Enterprises Group (BJG), the sole gas distributor in the city via its Hong Kong-listed unit Beijing Enterprises Holdings (BJH), has also been investing in China Gas as a way to expand its lucrative gas business beyond the nation's capital. China Gas operates 184 city piped gas projects in 21 provinces and municipalities. BJG's investment raises the prospect of a tussle for management control.

BJH has a monopoly in Beijing, selling 7.94 billion cubic metres (bcm) of gas last year to the city that has ambitious goals to raise gas usage and phase out coal to combat air pollution.

BJH also has a 40 per cent-owned joint venture with PetroChina - the nation's dominant gas producer and importer - that operates long-distance pipelines to move gas from fields in the northwest to regions around the Bohai Bay economic rim. They moved a total of 23.72 bcm last year, or 16.5 per cent of the nation's total gas consumption. This relationship gives BJH long-term access to gas resources, a big advantage versus rival distributors in developing new projects.

Since April last year, BJG has been aggressively accumulating China Gas shares, raising its stake from 3.28 per cent to 22 per cent last month, unseating Liu as the largest shareholder. BJG on Tuesday agreed to sell the 22 per cent interest to energy-to-brewery conglomerate BJH, triggering speculation this could be a prelude to a possible injection by BJG of its Beijing gas distribution operations into China Gas in a move that could make it BJH's gas flagship.

Peter Yao Sheng, head of utilities and clean energy research at BOC International, estimated BJH could raise its stake in China Gas to 44 per cent if the Beijing operations were injected into BJH at 14 times their last year's earnings, in exchange for BJH shares. But such a deal will require approval from independent shareholders including Liu.

BJH chief financial officer Jimmy Tam Chun-fai said it would demand more board seats in China Gas, including some "important positions". Currently, only one of six China Gas executive directors came from BJG. Liu and people close to him make up the rest.

Meanwhile, before BJH's move to gain more control over China Gas, China Gas has been in talks to sell more shares to PetroChina's rival, China Petroleum & Chemical (Sinopec) - the nation's second-largest gas producer and the largest fuel stations operator. Sinopec currently owns 4.39 per cent of China Gas. China Gas and Sinopec have also signed a prospective deal to run gas refuelling stations at Sinopec's petrol stations. If realised, China Gas could rapidly roll out gas refuelling stations, one of the fastest-growing segments of its business.

BJH remains tight-lipped on its intentions. Liu declined to comment on whether he has been consulted on BJH's business plan for China Gas and any management control sharing.

Continued from the previous post:-

"Liu is a smart guy, he will try to balance the influence of key shareholders to maximise gains for China Gas."

Just 30 months ago, Sinopec and China Gas' rival ENN Energy jointly launched a US$2.2 billion hostile takeover bid for China Gas, which strongly objected it. The offer lapsed 10 months later.

The bid came a year after a power struggle on China Gas' board, which led to Liu's detention by Shenzhen police on alleged embezzlement of the firm's assets, and his removal from the board. The police found no evidence for a prosecution.

7 August 2013



Fortune Oil PLC

("Fortune Oil" or the "Company")



Proposed Acquisition and Loan Settlement

Proposal to seek a waiver of an obligation to make a general offer under

Rule 9 of the Takeover Code

and

Proposed Special Interim Dividend

Proposed special interim dividend of 2.36 pence per Ordinary Share (the "Special Dividend. 30% dividend! wow!

Better than nothing.
Recently, sold 50% of my holding at these ridiculous prices!

Topped up holdings the past few months/weeks ,overweight in these .

Not the re action I would have expected...
We shall see...

Some nice little buys coming in again.

Fully listed Fortune Oil (FTO) has announced a string of transactions which has left many investors pretty confused but broker VSA Resources reckons it is good news for investors. It has published a detailed note explaining all.

It writes:

Fortune Oil has announced what is a very complicated, but ultimately beneficial, package of transactions which aim to drive future share price performance and increase its exposure to the growing Chinese gas market.

1. Fortune has acquired the remaining 15% interest in Fortune Gas Investment Holdings Ltd (FGIH), for a total consideration of US$60m. This interest is currently owned by Wilmar International Ltd (WIL SP) and has been conditionally sold to China Gas Holdings Limited (384 HK).

2. Fortune has arranged a working capital loan via a Vitol-backed vehicle, to bridge commitments while it awaits Ministry of Commerce of the People’s Republic of China (MOFCOM) approval for its asset disposal to China Gas Holdings.

The short-term benefit for existing shareholders is the special dividend of 2.36p/share, which should counter the dilutive effect (c600m new shares to be issued) of these transactions.

In the longer term, the acquisition of Wilmar’s interest will increase Fortune’s exposure to China Gas Holdings (CGH), and therefore to the rapidly expanding Chinese gas market. Vitol’s involvement in today’s announcement shows that it, too, has expansion plans in China, and this relationship should yield additional growth in due course.

Given the share price performance since March, this news should come as some relief to the current shareholders, as it delivers a special dividend as well as the opportunity to create more value in China.

We continue to be of the view that Fortune Oil is a misunderstood company and is undervalued on its CGH interest, alone, with the Fortune portfolio in for “free”.

We maintain coverage with a BUY recommendation and target price of 20p.

Fortune gets go-ahead for FGIH stake sale

StockMarketWire.com

China Gas Holdings Limited informed the Company that the MOFCOM regulatory approval had been obtained. It is anticipated that completion of the FGIH Transaction will occur after all of the normal handover procedures have been completed.

" It is expected that these proposals will ultimately provide additional sources of demand for, and improve the marketability of, the Ordinary Shares of Fortune Oil."

I dont understand that part of the rns the other day..
Danny Chieu and Vitol will go from around 37% to 55% of FTO shares in issue..
Thats hardly creating demand...Perhaps they may want to take FTO private at some stage...

CGH is being traded around HK$ 8.5, and if I remember correctly FTO has a right to buy at much lower levels, below HK$6 I think.

Does anyone know this?