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

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.

up slightly today . i think people are realising that its just a slight delay and nothing too much to worry about . fto are experienced operaters in china and know how their system works.they dont sound overly concerned about the delay to me.

down at dinner today . this is what undertainty does.

keep the faith. this share is a winner

I too have faith in the Company and increased my holding yesterday. I discovered the following article which you may find interesting on MSN.COM which describes the Chinese economy. They have huge energy needs that hopefully Fortune can capitalise on.



Jubak's Journal
3 big threats to Chinas economic miracle
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China won't remain an export superpower forever. Food and energy shortages and the growing influence of multinationals like Wal-Mart could change everything.

By Jim Jubak

To many people in the United States, the China story goes like this: A huge emerging industrial power eats U.S. jobs and buries the U.S. economy under a mountain of cheap imports while erecting barriers to U.S. goods. The only suspense in that story is whether America will fight back or simply roll over.

That storys easy to grasp, and theres enough real pain in the U.S. economy these days over lost jobs to China to give it emotional clout.

Unfortunately, its wrong.

It's much more complicated
That story is too narrowly focused on the relationship between the United States and China. In fact, China (with a big assist from other big-population developing economies such as India and Vietnam) is a leading player in a global economic makeover that presents much of the rest of the world with challenges that dwarf any U.S. problems.

And the ending of the story is nowhere near as cut-and-dried as it sometimes seems from the United States. Its much too early to assume we know how it will turn out, who the main characters will be and even when the climax will take place.

Another version of the story
Let me give you another global version of this story, at least as we know it so far. It gives full weight to the twists and turns, surprise dead ends and sudden plot reversals that make the China story equal to anything that Charles Dickens wrote.Meet Jim Jubak
at the Las Vegas
Money Show -- for free.



Ill start my China story with Korea. In the United States, were obsessed with our trade deficits with China, and rightly so. In 2003, we ran a huge trade deficit of $542 billion (or almost 5% of GDP) with the world: China alone accounted for $124 billion of that total.

But China runs a huge trade deficit with the rest of the world. In 2003, China imported $23 billion more from Korea than it exported.

For years, the huge U.S. economy has been Koreas biggest export market. American consumers gobbled up cars from Hyundai Motor (HYMLF, news, msgs), air conditioners from LG Electronics and wireless phones from Samsung Electronics (SSNLF, news, msgs).

But no more. In 2003, Korean exports to China surged 48% to $35 billion, and China became Koreas No. 1 customer, absorbing 18.1% of all Korean exports.

The situation is much the same throughout Asia. China ran a $7 billion trade deficit with the countries of the Association of Southeast Asian Nations (ASEAN -- Vietnam, Thailand, Malaysia, Indonesia, the Philippines and Singapore among others). Japan has been a major exception, but even Japan ran a trade surplus with China in February, the first monthly trade surplus for Japan with China in 10 years.

Whats causing these huge deficits? The existing economic order in Asia has China importing a lot of the expensive high-technology parts that its cheap labor then turns into finished products. Add in the growing Chinese demand for high-technology consumer products and, wham! Trade deficits with Korea, Singapore and Malaysia explode.

Will Korea and others face the same problems we face?
But this story looks like its about to take its first big narrative twist. You see, Korea remains an export-driven economy. Koreas economy grew 3.1% in 2003. Exports generated 98.2% of that economic growth..


--------------------------------------------------------------------------------
Related news and commentary on MSN Money When China brakes, the world slows
You need to invest in China, but how?
China is no job-stealing bully
Read the most recent news in Market Dispatch


--------------------------------------------------------------------------------

That would be swell, except that its already clear that China has no intention of remaining the backward neighbor that trades low-tech goods for Koreas high-tech exports. By 2010, China could be on a par with Korea in wireless handsets, computer and TV displays, petrochemicals, and refrigeration systems, the Korea Development Institute estimates. By 2011, Korea could be facing a trade deficit with its bigger neighbor.

From there, the story could be a replay of the U.S.-China subplot with China becoming an export engine that swamps the economies of its neighbors with cheap but increasingly high-technology goods.

But will it? If you read the global story carefully, youll find potential plot twists that put this ending in doubt.

Let me provide you three.


China faces a potential two-part agricultural crisis. As incomes rise in China, demand for chicken, beef, wheat, vegetable oil, and corn increases. At the same time, however, the amount of arable land in China has been falling, thanks to factors ranging from an encroaching desert in the west and north, to runaway industrial and residential development that has gobbled up some of the countrys best farmland. This is no small problem in a country that must feed 20% of the worlds population on 7% of the worlds farmland.

The Chinese government has long had a goal of self-sufficiency in food production. Today, China imports only about 3% of its agricultural needs, about the same as in 1994, according to UBS Ltd. But despite efforts to promote domestic production, to limit new development on farmable land and even to reduce the acreage being planted in trees to hold back the desert, the acreage devoted to crops is falling.

Only by drawing down the countrys massive food stockpiles has China been able to limit imports. That policy is probably good for another year or so, experts say, but, after that, China may need to import more agricultural products -- probably at higher prices. (Global wheat prices are up 20% in the last year.) Efforts to prop up domestic production are likely to divert some internal investment away from the industrial sector.
Plot twist: The countrys need to import food puts increasing strain on the Chinese economy and will shift global trading power toward the worlds biggest food exporters. Some of these happen to be the biggest markets for Chinese exports as well.
China runs a huge energy deficit that will only get larger. Ten years ago, China was a net exporter of crude oil. In 2004, China overtook Japan to become the worlds second-largest importer of oil, behind only the United States.

That has set China racing to lock up reliable sources of oil before the rest of an oil-hungry world does. Earlier this year, Sinopec, the Chinese chemical and oil refining conglomerate, was awarded a gas-exploration license in Saudi Arabias Rub al-Khali basin. China National Petroleum and Sinopec signed production deals in the Sudan when Western investors pulled out. The companies are moving ahead with plans to build a new refinery even as the countrys civil war rages. In January, China signed a 30-year deal to buy crude oil from the west African nation of Gabon. And China inked a $21 billion deal to buy liquefied natural gas from Australia.

But securing oil supplies is only part of the solution. China is also suffering from a huge domestic shortage of electric power. Last summer, rolling blackouts shut factories in 21 of the countrys 31 provinces. Chinas shortage of generating capacity hit 44,850 megawatts in 2003, up 120% from 20,350 megawatts in 2002, the Development Research Center of China reported. As youd expect, Chinese investment in the power-generating sector climbed by almost 20% in 2003 and then speeded up to a 60% rate of increase (year-over-year) in early 2004. Investments in the sector accounted for 20% of Chinas total industrial investments in early 2004.
Plot twist: Chinas need to invest in its energy sector limits the countrys economic growth at the same time as the countrys aggressive hunt for oil damages relations with its oil-hungry trading partners.
Real economic power in China increasingly is in the hands of multinational corporations. Just like any other nation-state in the 21st century.

China probably has a better chance of winning a battle or two against Wal-Mart Stores (WMT, news, msgs) than a Vermont village does in trying to keep the discount chain out. Chinas odds of winning the war, however, arent good.

In February, the China Daily trumpeted a story headlined Domestic Retailers Keep Stranglehold that proudly noted that the Shanghai Bailian Group topped the rankings of the countrys biggest retailers in 2003. Plus, Chinese companies claimed the top four spots.

But the trend certainly isnt running in favor of the Chinese companies. Six overseas retailers, including Wal-Mart and Europes Carrefour (CRERF, news, msgs) and Metro (DE:725750, news, msgs) also cracked the list in 2003. That was first time foreign retailers made the top 30. Moreover, the foreign retailers accounted for 18% of the sales of the top 30 retailers.

And this is before the Chinese lift restrictions on capital structure and location, changes mandated by the countrys entry into the World Trade Organization.

This isnt the most telling sign of the way the battle between the traditional nation-state and the multinational corporation is going in China. Last year, Wal-Mart bought an estimated $15 billion in goods from China. Thats more than the $14 billion the 10 member-nations of the ASEAN imported from China in 2003. Projections say that Wal-Marts sourcing from China will hit $25 billion within three years.

With that volume comes power over the Chinese economy that mere countries such as Thailand or Korea cant hope to wield. Wal-Mart has been known to demand that its suppliers change their bookkeeping systems and improve their logistics to meet tight delivery schedules. In exchange for Wal-Mart contracts, Chinese companies have been required to open up their books to Wal-Mart and cut prices if Wal-Mart decides the suppliers profit margins are too fat. The Wal-Mart system is enforced by 200 Wal-Mart staffers from procurement centers in Shenzhen and Shanghai. Not only do they monitor suppliers, they also stay on the lookout for replacement suppliers that can do the work for less.

Other global retailers are moving to gain the same kind of control over their Chinese suppliers. Carrefour and Target (TGT, news, msgs) have recently opened their own procurement centers in Shanghai and Shenzhen, respectively.
Plot twist: Like other nation-states have discovered, economic sovereignty in the 21st century aint what it used to be. The battle over who has the power -- the countries that produce the goods or the companies that control access to customers -- is just beginning.
And as these three examples suggest, we still have chapters and chapters to read before we know how the China story will come out.

In my next column, the last in this three-part series, Ill take a far less global look at how the China story is likely to change life as we live it in these United States.

interesting article longinvest. thanks for that and source
snakey

longinvest

Many thanks for that!

I would like to read his next column, what is the URL?

price of oil is now nearly 40 dollars. surely thats good for ftpo?

Fortune Oil is tipped as a buy in Investor's Chronicle this week.

any prediction for next week?

I would not be surprised to see 8p this week, rolling up to 10p steady in a months time. However, I have put the providential `kiss of death or stagnation` on a couple of stocks in recent weeks

do anyone spot any news this weekend?

I am sure Fortune Oil will go up in view of rising oil price.

Analysts reckon oil price will hit $50/barrel soon
AFX
$50/barrel could be reached within weeks, says analysts to Sunday Times


Analysts warn oil prices, which reached a near 14-year high of 40 usd a barrel on Friday, could hit 50 usd in the coming weeks, said the Sunday Times newspaper.

'Fifty dollars a barrel is perfectly possible if we get the wrong sort of headlines from the Middle East,' the paper quoted Kevin Norrish, an analyst at Barclays Capital, as saying.

In the UK, petrol prices topped 80 pence a litre last week and rising crude prices, together with widening refinery margins, are widely expected to push up prices further.

The Bank of England, which publishes its quarterly inflation report this week, will say dearer oil and commodities are likely to push UK inflation towards its 2 pct target, said the paper. Economists expect the Bank, which raised the base rate from 4 pct to 4.25 pct on Thursday, to signal that further increases will be needed to keep inflation on track.