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.

If I remember correctly, the price was average over 10 days before the close 30 Dec 2012.
The price was around HK$ 6.2.

No...it is the average over 10 days when they decide if they want to take shares...going forward ahoj..

The Avanti Group comments on the promising future for China Gas Holdings Limited as they continue to grow and expand.

The Avanti Group the equities research house based in Tokyo, providing professional trading and investment research solutions to institutional and private investors across the globe have recently drawn their investor’s attention to China Gas Holdings Ltd a company that distributes and sells natural gas to residential, commercial and industrial users, operating and managing gas pipelines.

CGHL based in Hong Kong is growing at an exceptional rate year on year. Their main area of business is in the construction and operation of city gas pipelines. At present CGHL owns the exclusive city gas concessions for 184 cities and regions, with over 33,000 kilometers of gas pipeline serving over 7 million households. With a strong hold all over China and with its expansion into India and South Korea they are perfectly poised for further growth.

The gas giant similar to many corporations in China use a five-year plan strategy, now approaching their 12th year of successful business seeing growth figures never accomplished by Gas corporations within the U.S. or Europe. Involved in the supply of over 1,600 industrial customers and 43,000 commercial customers and adding their 120 processing stations and over 130 refilling stations you can see the magnitude and depth of this colossal company. These are astounding numbers and with China’s move away from older and less green industries like coal the future of CGHL looks very bright.

“With China Gas Holdings ongoing expansion of their city gas concession network last year they grew from 157 concessions to 184 giving an additional 27 new city locations or regions to their portfolio which is the largest in China. CGHL is growing in all aspects of their business. Their commercial, Industrial and residential bases all see improvements adding value and gains,” said Andrew Taylor Senior Vice President of Mergers and Acquisitions at The Avanti Group.

The corporation’s subsidiary holdings include Iwai’s Holdings Ltd also based in Hong Kong, Hai Xia Finance Limited, Wellgem Asia Limited, Elegant Cheer Limited and Zhongran Gas (Shenzhen) Company Limited among others. China Gas Holdings Ltd. annual report show record high revenue, profits and dividends net profits up 85% last year. In the coming year along expansion is set to continue at record pace, expanding their CNG and LNG network of refilling stations for vehicles and vessels and growing their ventures overseas with projects underway in India and South Korea all set to generate similar profit yields.

“The future of China Gas is clear and we will continue to advise clients as to the best solutions for adding related stocks and acquiring shares within this market place. With continuing expansion and growth both at home and overseas China Gas Holdings Ltd could be one of the biggest stories on the Hong Kong Stock Exchange over the next 12 to 24. We will be closely monitoring this growing company and associated industries that will benefit within this sector,” concluded Andrew Taylor Senior Vice President of Mergers and Acquisitions at The Avanti Group.

Some very large (for FTO) trades gone through quite late in the day...
Interesting...need to watch that...
I believe from reading some other BB that a large seller may be close to completing sale...
Possible room for real advancement soon...

Fortune Oil: 2013 half year report: Wenesday 21 August.

The Company is pleased to announce that the entire issued share capital of Fortune Gas Investment
Holdings Limited has been transferred to China Natural Gas Investment Limited which is a whollyowned
subsidiary of the Company. Fortune Gas Investment Holdings Limited has become an indirect
wholly-owned subsidiary of the Company.
By the order of the Board of
China Gas Holdings Limited
Wong Sin Yue, Cynthia
Chairperson
Hong Kong, 20 August 2013

Shares in Fortune Oil (LON:FTO) are a compelling proposition, reckons Oriel Securities.

“The shares are trading at a c.45% discount to the see through value of expected net cash and the stake in China Gas, with no value attributed to the on-going business,” the broker argued, as it reiterated its ‘buy’ recommendation in the wake of Fortune’s interim results.

The results confirmed Fortune will seek approval from shareholders for a special dividend of 2.36p a share, and a waiver from Rule 9 of the UK Takeover Code for a general offer to be made for the company by persons owning more than 56.9% of the company.

Net assets increased 32% to £327.4mln following a further appreciation in Fortune’s investment in China Gas Holdings. Net debt at 30 June 2013 stood at £69.3mln, versus debt of £61.1mln at the end of 2012. The group does not envisage any difficulties meeting loan repayment obligations or investment commitments, the broker notes.

(proactiveinvestors.co.uk Aug 21, 2013)

I am not sure what the next news flow is here..as the gas component is now gone.
A regular poster on another board seems to think that the price above 8.80p on the bid is a vital next move (not sure why)up. To be honest..I am surprised the sp did not fall more after the very boring results yesterday...
But I am getting more optimistic that the big seller is now finished and we may find that the buyers are now more comfortable that stock is not now going to be dumped.
Also most of the big volume trades are now on the buy side. This could be in anticipation of the next announcement which may be associate status been granted.
If it were the case an acquaintance of mine has said it could mean as much as £33.9 million before tax profit, been attributed to FTO on a consolidated bases, based on CGH's 2012/2013 year end profits recently announced..which were in GBP £169 million. That plus our remaining groups profits could put us close to nearly £50 million before tax!!!!
Not including CGH stake and cash from deal... With gearing around 21% and very manageable...this stock is beginning to come through the smoke of the last year in an exceptional position and will no doubt soon attract serious attention...
Big top up completed today on this new information and please....EVERYBODY DO YOUR OWN RESEARCH...but don't take forever..

CHINA GAS HOLDINGS LIMITED
中國燃氣控股有限公司* (Incorporated in Bermuda with limited liability) (Stock Code: 384)
STRATEGIC COOPERATION FRAMEWORK AGREEMENT WITH BEIJING ENTERPRISES HOLDINGS LIMITED

The Board is please to announce that on 23 August 2013, the Company, BE Group and BE Holdings entered into the Strategic Cooperation Framework Agreement pursuant to which the Company and BE Holdings will: (i) jointly develop and invest in the area of gas in various forms, such as equity joint ventures, as well as to develop gas related value-added services in the current market and to invest and develop city basic infrastructure, provided that such development and investment is permissible under the laws and regulations; and (ii) utilise and synergise their respective advantages, such as upstream pipeline transmission, downstream supply, refuelling station and trigeneration (i.e. combined cooling, heat and power) etc., to realise the joint development of the business areas of both parties to attain a win-win situation.

China Gas Holdings: Ex Divi:22/8/2013.
Divi payable: 30/9/2013

Fortune Oil should recieve: £1,838,000. are my sums correct?

No of shares held in C.G.H. 351,223,000 [7.6%]

Divi : hk$ .0628

hk$ 12 = £1.

Fortune Oil should recieve hk$ 200m from gas sale shortly.?.

Fortune Oil should receive $200million US Dollars not HK$...:)
Big difference...


The dividend is paid to CGG which FTO hold a 50% JV stake. The sum will most probably be used to help finance the cost of the borrowings in CGG, which would make sense... Sums look accurate before tax...

Thanks Ruthbaby.
$200 million us dollars : £128 million pretty good payday and the same again end of year,or more cgh shares.

Yes...but not sure how much we will pay by then....
They have dropped in price due to going ex dividend (CGH) but feel they will soon go over HK$10 per share as JV sums are done...

26 Aug 2013 13:03 Market News

(Infocast News) China Gas Holdings Limited (00384) announced that all with effect from 23 August 2013, Cynthia Wong Sin-yue has retired from her position as the chairperson of the board; Zhou Si has been appointed as the chairman of the board and an executive director of the company; and Yu Jeong-joon has been appointed as the vice chairman of the board. Liu Ming-hui remains as the executive chairman of the board.

Zhou Si is the vice chairman, executive director and chief executive officer of Beijing Enterprises Holdings Limited (00392).

BEIJING ENT (00392.HK) Chairman Zhou Si said the acquisition for 22.01% interest in CHINA GAS HOLD (00384.HK) is pending approval from the HKEx and special shareholders' meeting. Subject to the investment value, the Company may increase the holding further in the future.

Zhou added that the two sides have signed a strategic cooperation agreement, but no specific project is proceeding, and they will seek opportunities for cooperation in many areas. Asked whether SINOPEC CORP (00386.HK) will increase holding of CHINA GAS, Zhou said it is possible, but currently there is no plan.

F.T.O. Sp ,good day today.

Yes.
We await news from the take over panel now and then the general meeting..
It's not yet conclusively in the uptrend but it is getting closer and it needs some volume but news is still awaited about a few things...

The sp is been fueled up for a strong rise, I think...

Premier Energy and Water Trust plc has 4.7% holding in Fortune Oil per statement issued
yesterday.

Interesting equity investment trust with market cap of c £ 28m and quoted in London
( PEW.L)