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.

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??

not sure this going anywhere all dreams and jam tomorrow anyone got any idea where the growth in share price will come from ......turnover goes up but profit not at the same rate etc ,other oil companys with even more dreams and jam tomorrow have doubled etc where as this has got so boring its more interesting watching paint dry i hold 2hundr tho as well

Biffa - I'm surprised you hold 200K in a company you don't understand. Maybe you should follow the links above and do some research or sell your holding!!

HE be better off buying seo there he would not be the onlyone who brought the share WITHOUT PROPER RESEARCH////

rumour of 3 mill being a buy which would explain sudden movement so added another 100k

Airlines competition in China is heating up. That's partly due to huge investment by foreign companies in China.

FTO COMPLETES FIRST2 PILOT PRODUCTION WELLS FOR CBM SHOULD HAVE RESULTS FROM THESE BY END OF MARCH.

Perhaps that'll provide a boost to the sideways-trading SP.

LONDON (AFX) - Fortune Oil PLC has reported positive initial results from the first two pilot production wells for coal bed methane in the Liulin block, Shanxi Province, in China.
The company said the drilling has confirmed the presence of thick coal seams, totalling 19 metres, adding that the target seam for production 'could have a significant production potential.'

Thanks explosive - a significant tick up tomorrow then I hope!

Dear Maam - I think we hold all the same stocks!

Quite possibly Sir. What else do you have an interest in then?