This is an another money maker -trading in high volumes -not yet started the race -But once moving ahead there is no chance of picking up this tiddler.Join together to enjoy the instant wealth

This FT article is what spooked investors in FTO today.....looks like many panicked and sold.....buyers coming back in now at bargain price !!

Fortune Oil's Chinese asset sale delayed
By Friederike Tiesenhausen Cave
Published: April 29 2004 16:40 | Last Updated: April 29 2004 16:40


Fortune Oil, the energy group focused on China, has suffered a setback with the planned sale of its largest asset because of delays in receiving approval from the Chinese regulator.


John Pexton, who became deputy chief executive in February, said: "We obviously hope [the transaction] will happen in the near future. Though the problem with any state bureaucracy is that you just don't know."

Fortune agreed in February to sell its 24.5 per cent stake in Bluesky, a jet fuel company, to China Aviation Oil (CAO) for a mix of cash and shares. But completion of the deal has been hampered by China's state-owned Assets Supervision and Administration Commission, which has so far not cleared the issue of CAO shares to Fortune.

Due to a strong rise in CAO's share price, the Bluesky deal would now be worth about 43.5m compared with 31.8m in February. completing the disposal will be critical for the company's 2004 profits, as the value of deal currently stands at about a third of Fortune's market capitalisation.

Fortune, which is staking its future on China's surging demand for energy, yesterday said it wanted to invest further in downstream natural gas projects. In November, it took an 80 per cent stake in a joint venture with a subsidiary of China National Petroleum Corporation (CNPC), the state holding company that controls most of the domestic natural gas supplies.

China last year overtook Japan as the world's second largest importer and consumer of crude oil after the USA. To reduce pollution from coal and other fuels, the country's government aims to increase the share of natural gas in primary energy consumption from the current three to six to eight per cent by 2010.

Thursday's news came as Fortune reported full-year results, which were delayed by a day because of the uncertainty involving Bluesky. The company said full-year profits for 2003 were 1.3m compared with 1.1m in 2002, leading to earnings per share of 0.09p (0.08p). Turnover increased by 22 per cent to 99m (80.9m). No dividend was proposed. Fortune shares closed up 1/8 p at 7p.

FT Comment:

As one of the few foreign companies that have direct exposure to China's insatiable energy appetite, Fortune could live up to its name if it manages to carve out a slice of the growing natural gas market.

But Thursday's news served as a timely reminder nothing goes without co-operation of the state authorities. Even though the Bluesky deal has become a lot more attractive due to the rise in CAO's share price recently, investors new to Fortune might want to stay put until the regulator has approved it.

i couldn't resist - another 50000 at 6.35. whatever happens to the sale, at this price it will seem like a bargain in six months.

highinterest

I followed you. Could not help myself but buy more even more @ 6.25. Its a worth while for the future. This is a nice stock.

Goodluck all.

good luck goss - that's 120k for me at av 6.6

i followed you guys. Bought in 70000 at 6.5p

what about Share's opinion that these shares are expensive now, since they have trebled over last couple of months ?
Any target prices on this one?

i htink stil cheap

Yes I agree in view of its exposure in China and it has improved its profit and EPS.

I am expecting a doubling to approx 15-16p within next 6 months

Are we hopeful that the Chinese authorities are going to allow the sale? IMO it's always expected that things never run smoothly, but you get there in the end c.f. buying a new house - when all looks to be collapsing, the deal goes through.

If the Chinese do block the sale, what is the worst that can happen?

I believe the sale is safe and only needs the `decent meal and tickets for Euro 2004` to seal it`s approval!!I will quickly add that this is my "tongue in cheek" opinion and shouldn`t be taken seriously, especially by any litigation experts out there!!

China cannot import enough oil at the moment, needs more and more and more. This is a great time to stock up on FTO - its should be heading north fast - use this period of false worry about the deal to build up a bigger holding, IMO.

Why the huge drop today ????

uncertainty , i think , blaney. the delay on the blue sky sale makes a big difference to the numbers. some people dont want to take the gamble and hold. personally i dont see any reason to sell at the moment. at least wait until news is out.

this week is definitely a good opportunity to top up, especially if it drops again tomorrow.

annoncement this morning.


re Bluesky Sales Contract

The Board of Fortune Oil Plc ('the Company') announces that its wholly-owned
subsidiary, Fortune Oil PRC Holdings Limited ('Fortune Oil PRC'), has agreed
with China Aviation Oil (Singapore) Corporation Limited ('CAO') to extend the
date for fulfilment of the outstanding conditions in regard to the sale of its
interest in South China Bluesky Aviation Oil Co., Limited ('Bluesky'), to 30
July 2004. Completion of the sale of Bluesky will take place 7 business days
after the outstanding conditions have been fulfilled. Fortune Oil PRC will
remain entitled to the same benefits as if the transaction had completed prior
to 7 May 2004.

A further announcement will follow in due course.

looks like we will have to hold until july but its still reassuring that things are progressing positively

Hi
thats better than nothing

but does ' remain entitled to the same benefits as if the transcation had completed prior to May 7' mean that we will not benefit from any further increase in the CAO share price??

if it does then presumable it also means that we shall not be exposed to any fall in that share price.....this may be a little more relevant as China stock is taking a 'rest' right now

iii is down again!!!!!!!!!!!

rgds

Chain Aviation Oil (Singapore) fell by 25% over night, no reason given given on their website. I don't know if the masive fall had something to do with the delay in the deal but it looks worrying to me.

I think it is time to top up to take advantage.