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.

I gave my targets six months ago.

17% rise Friday...
Very bullish coverage in the IC.....results by February..2sd interim.
Back in here 2 weeks ago and now this...

I still have very large holding,CGH doing very well.

+12p now, fingers crossed the rally continues.

Does HSBC still hold 9% of these?
They bought at 9p.

Good start for the week.

Yep, it's starting to look up

Wow what a good day,i have a been very patient with these it was worth the wait!!
Have taken a little profit today.

ahoj:
They are not listed as holding 9%...they may have dumped them a while back....
It got updated by the IC..and has maintained the buy rec....even after the near 30% rise in sp....

Seemingly good results yesterday but underwhelming market reaction. No divi being paid either which just serves to deepen my mistrust of the inscrutable and uncommunicative FTO management. Small holding only but many years of patience with always jam tomorrow for shareholders.

I have no idea why..
Is this fall just because they cut the divi?

Any suggestion which one of the two options below are better?


Fortune Oil has entered into a Scheme of Arrangement with Fortune Dynasty Holdings Limited effective as of the 9th March 2015.
Under the terms of the Scheme, Holders will receive an initial payment of GBP0.10 in cash in exchange for each Fortune Oil Share held.
In addition holders can elect to receive either 1 Contingent Value Right or 1 Loan Note in exchange for each Fortune Oil Share held.

Each Contingent Value Right will carry a contingent entitlement to a further GBP0.05 in cash (less any applicable deductions or withholdings)
within the 12 month period following the Effective Date of the Scheme. This payment is subject to certain conditions being satisfied prior to the
expiry of the 12 month period.

The Loan Notes will be created by a resolution of the Fortune Dynasty Directors on the date (if any) that the entitlements of the Contingent
Value Rights become payable. The Loan Notes will be credited as fully paid with a nominal value of GBP0.05. They will not bear any interest
and the term of the Loan Notes will be 6 months and 1 day from their date of issue. On the expiry of the term of the Loan Note, Fortune Dynasty
will redeem the outstanding Loan Notes at par (less any applicable deductions or withholdings).
The Scheme of Arrangement is subject to approval at Meetings to be held on 13th February 2015. It is subject to certain restrictions as outlined
in the Official Offer Document.

If you live in the UK take the cash option (just wait...no need to do anything) : 15p...in total...not bad if you bought in around 10 or 12p....and move on to pastures new...

Why not to buy at these prices then?

ex-rights ?

CVR are probably worthless - the market certainly thinks so. Small shareholders are in danger of being shafted by Fortune Dynasty - who just happen to be Directors of FTO and are buying the Co on the cheap.
Vote against and you might see a better offer somewhat nearer to the NAV.

Thank you for comments.
I still cannot figure out which one choose. I have fto shares in ISA.

If you were me, which one you would choose, Default option or the other one?

Thank you gyus for comments.
I still cannot figure out which one choose. Their description is so confusing to me!

I have fto shares in ISA and I should vote by tomorrow, I think.

If you were me, which one you would choose, Default option (CVR), or Loan Note?

I think I read somewhere in the FTO Scheme doc for an ISA or SIPP the loan note option is not available. In any case aren't loan notes just a fudge to defer capital gains into another year in which case it would be pointless for an ISA.
Full documentation is on the FTO site under Reports.

cvr is valueless. Read the document. The criteria to be fulfilled is not possible. The market values the deal at only 10p....hence the price just below.