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.

Dear Maam - I think we hold all the same stocks!

Quite possibly Sir. What else do you have an interest in then?

Lots of stuff, all dud.

But as you may have read, I have a new policy - wait until cynic slaughters something, then buy it straight away. Sure winner, just you watch.

Sounds good to me!!!

He dissed PRTY so I bought yesterday and up 1.5P this morning. It's a whole new world of investing. I may write to the IC about it.

You in HML? Some big movements this week - I bought some more as I think it's sound. Plus cynic recently issued a warning about it!

I'm not but will take a look - thanks!

Prty now up 1.75 and looking good. Go cynic.

The HML thread is interesting particularly the co statment this week; it's a penny share, yes, and it makes a loss, but it does seem to have a lot of decent things going for it, and on any news of licensing agreements etc the sp moves up nicely, and then straight back down again, but it's that volatility that makes it fun.

*doffs cap*

Not that I usually listen to advice from the masses but there's no point being Queen if you can't do as you please now and again...so thanks for the pointer!

You're most welcome, marm. Here, is it true you watch your own speech on Christmas Day, and Phil the Greek always farts all the way through it?

Sorry to not reply sooner, but I've been busy averaging down on Designer Vision today, but sadly I could now average down again. Somebody must have rated it!

Anyway, toodle pip

*touches forelock in weedy and downtrodden manner*

Well as you know oik, one has two birthdays so one is also able to watch oneself when one desires. We only see Phil the Greek on Wednesday's as that's kebabs night.

And Fridays, what menu of great delicacy is on the palace mahogany this evening?

So tell me, how does it feel to have such a successful family?

*bows very deep, goes red in the face and has to sit down*

Mutton.

I'd be a lot more successful if FTO pulled its finger out and stopped languising between 5-6p.

*appears with large pointed hat with stars on*

you shall have your wish my lady, FTO will double before the ides of March...

Here, we seem to have this thread to ourselves, are we in some kind of parallel world do you reckon. Or does no other fool hold FTO?

Hope you had a good weekend.

Chicken. Oh, and beef but it was awful, hard to chew.

GEOLOGY STUDY DOUBLES ESTIMATED CBM RESOURCE AT LIULIN. THIS NEWS MIGHT MOVE THE SP.??

FORTUNE OIL PLC

('Fortune Oil' or 'the Company')

Geology Study Doubles Estimated CBM Resource at Liulin

Further to the announcement issued on 22 January 2007 Fortune Oil is pleased to
announce the results of a comprehensive geological study of Liulin CBM block
commissioned by its subsidiary Fortune Liulin Gas. The study was undertaken by
the Shanxi Coal Bureau, the governmental institute responsible for most of the
coal geological analysis in Shanxi Province and which is rated A-class (the top
category) by government authorities.

The study concludes that the Liulin block has estimated Gas In Place ('GIP') of
40.5 billion cubic metres (1.4 trillion cubic feet). This is almost double the
23 billion cubic metres resource that was estimated in an earlier Chinese
government study, and as initially informed to shareholders. The recent study
analysed data from 124 coal coreholes and 13 CBM exploration wells in the area,
of which 71 coal holes and 6 CBM wells were in the 200 square kilometre Liulin
block, and many of which had been drilled since the earlier study. The analysis
did not include the two CBM exploration wells recently drilled by Fortune Liulin
Gas, the results of which are not yet available. The calculation of GIP used a
CBM volumetric analysis that is standard in USA and China.

The average methane content found in the coal bed gases was 91%, based on 123
samples. The CO2 content averaged 3.9% and, after treating for the necessary
removal of CO2 and water, the gas quality would meet pipeline natural gas
requirements. The desorbed gas content of the main seams is typically between
10 and 14 cubic metres per tonne of coal, which is high although undersaturated
relative to the isotherm.

The gas in place was estimated using the known thickness of the coal seams down
to seam 10, which is at a depth of 500 metres to 1000 metres below ground. All
these gas resources are therefore potentially accessible. The study confirms
that the Liulin block contains a significant CBM resource, however there is not
yet any calculation of producible reserves. Actual gas recovery will be subject
to the in-situ coal permeability, ground conditions and local coal mining as
well as the need to de-water and develop each main seam in turn.

Further announcements will be issued when more field results become available.

.... 40.5 billion cubic metres (1.4 trillion cubic feet) reserves, double the amount estimated in an earlier Chinese study reported to shareholders. ...

No trade yet!!!! Why?

its normal for this one sad to say I have often asked myself the same question after each good news release

SP was up today but still firmly in the 5-6p range.....

FTO BUSINESS DEVELOPMENTS .MORE GOOD NEWS MIGHT MOVE SHARE PRICE???

Business Developments


Fortune Oil is pleased to announce the following business developments:


Natural Gas Supply


Sales of natural gas continue to grow strongly and there have been no supply
interruptions during the winter. Throughput at the Tongzhou CNG station is
currently averaging 260,000 cubic metres per day compared to 180,000 cubic
metres per day one year ago.

Approval was recently obtained from the Ministry of Commerce to establish
Fortune Gas Investment Company Limited, a 100%-owned holding company to be
registered in China. This holding company will help implement the Company's
strategy of creating an integrated gas business.


Bluesky Aviation Refuelling Joint Venture

The Bluesky business continues to perform well and the government-mandated
compensation mechanism remains in force, as expected. The rebate paid by
domestic airlines to Bluesky in the fourth quarter 2006 was RMB 320 (US$41) per
tonne. The first quarter 2007 rebate is lower at RMB 140 (US$18) per tonne,
reflecting the decrease in international jet fuel prices which are now closer to
domestic jet fuel prices. Rebates in respect of periods prior to the second
quarter 2006 are still under investigation by the government.


Oil Products Supply

In December 2006 the West Zhuhai Oil Products Terminal was granted a licence to
store bonded-status products. Discussions are now in progress with third
parties to use the terminal for supplying gasoil to destinations such as Hong
Kong and Macau. The new licence will also enhance the Company's own trading
operations in China, which currently include the import of bitumen and base oil
and the export of chemicals, primarily on a low-risk agency basis.

The Company will provide further information when the preliminary results are
announced for the year ended 31 December 2006 in April 2007.