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.

The chart is looking good for a trend breakout, a move through the 50 day MA could lead us to much higher places, and its good being on the back of the trading update.

So true PapalPower.

Moving up now, will it break through MA50, that will be a key sign of strength if it can.

jeez might do a charles and go and talk to the plants or watch them grow lol ,this is a boring share !! not tempted to sell tho , hold a big wedge of these ,a bit of pr would be nice even if its just to show someones awake in the firm lol

FTO is not moving anywhere...how boring

True at the moment. But that's what posters were saying about PXC not so long ago.....

Its having another go at breaking through again anyway.

http://www.rigzone.com/news/article.asp?a_id=30360

Thursday, March 16, 2006

China could start work on a second east-west gas pipeline within the next five years, said a researcher with Chinese oil major China National Petroleum Corp (CNPC).
Liu Keyu, deputy director of the CNPC's Economics and Technology Research Institute, said at a forum in Beijing that work on the project forms part of the government's five-year plan, which runs from 2006 to 2010.
China already has one gas pipeline running from the country's west to Shanghai on the east coast.
Liu did not give further details about the plans for the second pipeline, saying they depend on developments in Sino-Russian energy cooperation.
The local media have reported that China is studying the feasibility of a second east-west pipeline, this time from Xinjiang province to Guangzhou in the south.
Liu said China's natural gas reserves still have a lot of potential, since only 600 million cubic meters of the 14 trillion available have been exploited so far.
However, China is also looking to Russia to help sate its growing hunger for energy, given the size of its neigbor's oil and natural gas reserves.
The media have reported that gas from a second east-to-west pipeline could eventually come from Russia or Kazakstan.
Russia's ambassador to China Sergei Razov said at a media briefing in Beijing earlier today that Russian companies are studying the possibility of supplying natural gas to China.
Liu predicted that China's annual demand for natural gas will rise to 100 billion cubic meters by 2010, with 30-40 percent of that total to be met by imports.
That demand could double to 200 billion cubic meters in 2020, he added.

great info,PP, but how is it expected to affect share price-is it a good time to buy?

both the FTO threads have been posting almost dailt articles from various chinese papers/bulletins for ages
china goes from strength to strength
articles to back it up daily

FTO share price ???????????????????/

gone nowhere

(holding xs 1m for ages)

kaymar, its all good news for the long term for FTO, but will have no effect on the short term at all.

http://business-times.asia1.com.sg/sub/news/story/0,4574,189439,00.html?


Published March 18, 2006

China mulls reform of oil product pricing mechanism

It says it will be difficult to maintain low price in future

(BEIJING) China's top economic planning agency said it was 'seriously considering' reforming the country's oil product pricing mechanism to bring it into line with international markets.
'In the future it will be difficult to maintain the low price of oil products,' Zhou Dadi, head of the energy section of the National Development and Reform Commission, said in comments published yesterday in the China Securities Journal.
'The changes will not only include the level of prices but also the mechanism of determining oil prices,' said Mr Zhou.
Preventing oil product prices from rising was not a good way to control inflation, he said. And low fuel prices did not help create an energy-efficient society.
An expert cited by the newspaper said a 10 per cent rise in oil product prices would lead to a 188 per cent rise in profits for oil refineries but a 59 per cent drop in profits for shipping firms.
In 2005, China's domestic oil price was only 78 per cent of comparable prices on international markets, creating an 'invisible subsidy' of 150.8 billion yuan (S$30.4 billion), said the paper.
Meanwhile, the China Daily said yesterday that PetroChina hopes to find significant oil or gas fields in the South China Sea within the next five years.
'We are now doing the preliminary work to develop fields in the southern part of the South China Sea area, and major breakthroughs will be expected during the following five years,' PetroChina vice-president Hu Wenrui said.
eparately, it was reported PetroChina may report record profit for a publicly traded Asian company because of higher oil prices and demand in the world's fastest-growing economy.
China's biggest oil company may say 2005 net income rose 36 per cent to 140 billion yuan, based on the average estimate of 23 analysts in a Thomson Financial survey. That compares with the US$11 billion profit predicted for Toyota Motor Corp in its financial year. - Reuters, Bloomberg

Fortune Oil PLC
22 March 2006



FORTUNE OIL PLC ('Fortune Oil' or 'the Company')

RETIREMENT OF EXECUTIVE DIRECTOR


Fortune Oil today announces that Mr. Bruce McGowan will retire from the Company
on 24 April 2006. He is due to retire by rotation at this year's Annual General
Meeting and accordingly the resolution proposing his re-appointment will not be
put to the meeting.

Mr. McGowan was appointed as an Executive Director in June 2000 and is currently
Joint Executive Vice-Chairman based in London. He has led the Company through a
period of significant change in the China markets and his contributions have
ensured its ongoing success.

Mr. McGowan, who will turn 62 this year, commented: 'It has been a privilege to
be part of Fortune Oil. I have stayed in this role for nearly six years, beyond
my original expectation. I am confident that the strong management team in the
Company can continue my work.'

Mr. Daniel Chiu, Joint Executive Vice-Chairman based in Hong Kong, added:

'Bruce originally participated in the establishment of our joint ventures over
ten years ago. I would like to thank him both personally and on behalf of his
colleagues for his great contribution. We extend our best wishes for a happy
and fulfilling retirement.'

The Board does not intend to make a further executive board appointment at this
stage.



22 March 2006


Enquiries:
Fortune Oil PLC
John Pexton, Deputy Chief Executive 00852 2583 3113 (Hong Kong)

Pelham Public Relations Limited
Archie Berens 020 7743 6679 or 7802 442 486



This information is provided by RNS
The company news service from the London Stock Exchange

Good news for FTO :



http://www.timesonline.co.uk/newspaper/0,,176-2103316,00.html

Pound may suffer as US rates rise above ours

This week American interest rates will be hiked to 4.75% more than UK base rate for the first time since the 1980s. By David Smith


SOMETHING unusual is about to happen in the international money markets that could have a big impact closer to home.
On Tuesday, under its new chairman, Ben Bernanke, Americas Federal Reserve will raise its key interest rate, the so-called Fed Funds rate, from 4.5% to 4.75%.


US interest rates have gone up a long way since 2004, when they stood at just 1%. And Tuesdays move, say analysts, will not mark the end of the story. Inflation worries in America will push the Fed Funds rate up to 5.5% by mid-year, predicts the investment bank Lehman Brothers.

In Britain, the significance of Tuesdays move is that it will signal the beginning of an unusual period, one in which US interest rates are higher than those in the UK. It happened very briefly five years ago, but before that you have to go back to the early 1980s for a period in which the US had higher rates for any length of time.

What could be the impact? Analysts at HSBC think it could push the pound, currently $1.75, down towards $1.50.

When US rates rise above UK rates for any period of time there is a strong tendency for sterling to weaken, said Mark Austin, HSBCs global head of foreign-exchange research.

And some more :

China raises petroleum ex-factory, benchmark retail prices - NDRC
BEIJING (AFX) - China has raised ex-refinery prices on gasoline by 300 yuan
per ton and diesel by 200 yuan beginning today, with benchmark retail prices of
gasoline and diesel increased by 250 and 150 yuan, respectively, the National
Development and Reform Commission (NDRC) said.
The commission, which oversees the country's industrial policy and sets
utility prices, said in a statement that the hike follows surging international
crude oil prices.
Crude oil prices remain at around 60 usd per barrel while refined oil
products have been sold at prices equivalent to about 43 usd per barrel since
July, the commission said.
Separately, retail prices of gasoline and diesel in Bejing were raised by
460 yuan and 340 yuan per ton, respectively, to reflect the higher cost of
refined oil products as the city apply stricter Euro III emissions standards.
Benchmark retail rates of refined oil products in China are controlled by
the government, but oil majors, such as Sinopec and PetroChina, can adjust the
selling price within an eight pct range.
Jet fuel prices have been increased accordingly, with the price of standard
aviation kerosene raised to 4,840 yuan per ton from 4,530, according the the
NDRC.
The commission added that the government will subsidize the country's
agriculture, fishery, forestry and public transportation sectors after the oil
price hike and that oil producers will be levied a windfall tax for their sales
of home-produced crude oil, with details to be released soon by the Ministry of
Finance.
(1 usd = 8.05 yuan)
derek.jiang@xinhuafinance.com
dj/tr

seems on a slight down trend

Moving sideways it is biffa, but the angle is coming close to finishing, so it must move up or down soon and out of the present trend.

hope so as i invested in this thinking that the return on this would be good being oil/china etc .........could of made alot more by getting a pin and sticking it in a list of oil companys prob !! some have soared and not always for good reason other than oil price rise ,where as fto has a good fundamental base etc ......dont normaly comment much as i have good patience but jeez this share is very boring :-)

Latest Broker Forecasts : Oriel 29th March 2006 BUY

2005 PTP 7m
2005 EPS 0.15

2006 PTP 11.6m
2006 EPS 0.25


On results this will put FTO on historic PER (2005) of times 34, a current year (2006) pr PER of times 20 and then a pr forward PER of ????.

With growth due to come more on line this year after recent events, and with a weakening pound sterling, then finally the ratings of FTO are becoming low enough to make it an attractive investment going forward for many other people, not just the hardcore few.

Latest Broker Forecasts : Oriel 7th April 2006 BUY

2005 PTP 7m
2005 EPS 0.15

2006 PTP 11.6m
2006 EPS 0.25