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.

blanche
yep def a bit boring i hold two hundred tho and also a recent large spread bet as well so maybe our time has come , i do think this will take off if management get it right and no big hicups in china region etc !!

results announced 27th april last yr so i take it same time this yr or there abouts so could be interesting few days ,

Fingers crossed and good luck to all in the same boat.

Roll on 26th April should in theory be all good news :-)

yep should be all good news but that is prob allready in the share price somewhat so looking for good write up on next yrs prospects or unexpected news otherwise prob 10p maybe is about all we will get short term ...........would be nice to have news of some new major shareholders buying in as well

Biffa
At this moment in time i`d be happy with 10p anything to get out of this trading band.

LONDON (Thomson Financial) - Fortune Oil PLC said its Fortune Liulin Gas Company Ltd (FLG) joint venture will recover 2 mln usd for past costs incurred in the Liulin coalbed methane (CBM) project by Molopo Australia Ltd.
Fortune Oil said it reached agreement with China United Coalbed Methane Corporation Ltd, the Chinese government agency responsible for the development of CBM projects in China.

FLG is 60 pct-owned by Fortune Oil and 40 pct by Molopo.

Fortune Oil also said it will announce its 2006 results on April 26, 2007.

Maybe the penny jump is coming, year end results should be exciting!!

hope the news and results are more exciting than this share price thought this might of moved a tad more

great results.look at the sp.

looks good but based on past news it wont go far stuck in its narrow tradeing band

I've held FTO on and off for 10 years and will continue to do so while news flow and prospects remain good. However this is a high risk investment. Dealing with PRC must carry risk of Government intervention/nationalisation if the Co becomes too successful. The whole oil/gas industry has high disaster potential e.g. Buncefield type incident. Exploration can be a huge money pit. Dividend payments are not likely in the near future. For these reasons share price growth will be modest and could reverse in an instant. Not a share for the family silver IMHO.

Was in these many yrs ago (5+)... bought and sold at around 3p at the time,,probably lost a bit back then... of course, wished I'd kept them as it just goes to show that on some shares it eventually does come good....may well buy in again on any dips...

Acquisition,AGM tomorrow,keep your eye on this one.

Fortune Oil will invest in new shares totalling 51 per cent of Green
Energy, which operates China's first commercial LNG liquefaction plant, CNG
stations and a fleet of LNG/CNG distribution vehicles.



Fortune Oil will provide RMB 71.4 million (4.7 million) of new equity to
Green Energy in cash in return for the new shares and will also provide a
loan to Green Energy of RMB 74.3 million (4.9 million). The funds will be
drawn from the loan facility signed in April 2007.



The funds will be used to finance new investments and to repay a RMB 90
million (6 million) loan to Sinopec.



Green Energy is one of the most significant centres of excellence for LNG
technology in China. For Fortune Oil this acquisition seals a major aspect
of the technology and resource required to develop a gas distribution
network in the world's second largest energy industry.





Prior to Fortune Oil's acquisition Green Energy was called Henan Zhongyuan Green
Energy Hi-Tech Co. Ltd. and was owned by its employees as a result of a recent
privatisation from Sinopec. After Fortune Oil's 51 per cent investment Green
Energy will be a sino-foreign joint venture with a minority 49 per cent held by
the 491 staff. These shareholders will be represented on the board of Green
Energy by two directors who had been instrumental in developing this LNG
business in Sinopec, Mr Zhang Kong Ming (Chairman) and Mr Xie Xin (previous
General Manager). Fortune Oil will appoint three directors to the board and it
is expected that Green Energy will be treated as a subsidiary of the Company for
accounting purposes.



Green Energy is based at Puyang in Sinopec's Zhongyuan oil and gas field in
Henan Province. The LNG production plant was constructed by Sinopec at Puyang
in 2002 and it was the first commercial LNG production plant operating in China.
The LNG is delivered by specialised road tankers to LNG storage tanks at end
users in cities such as Beijing and Qufu, where Fortune Oil first delivered LNG
from Puyang in 2004. Green Energy currently owns a fleet of 18 LNG and CNG
distribution trucks.



The LNG production plant has a design capacity of 55 million cubic metres per
year which is expected to be achieved after installation of new compressors in
July 2007. Green Energy also sells 34 million cubic metres per year of CNG from
its eight stations that supply natural gas fuel to a local user base of 5,000
buses and taxis. Green Energy has investments in another three CNG stations and
plans to develop further CNG stations in the Puyang area.



As a result of the employee privatisation from Sinopec, Green Energy benefits
from many government and Sinopec incentives, for example relating to taxation
and land rights. Sinopec has provided commitments on gas supply to Green Energy
from the Zhongyuan field that will enable the company to expand both its LNG and
CNG sales in the coming years. The employees have committed significant
financial support to Green Energy, demonstrating their confidence in the future
of their LNG technologies in China.



Fortune Oil expects that the existing assets of Green Energy will generate an
annual net profit of 1-2 million in the initial years and that the acquisition
will be earnings enhancing in 2007. Prior to the forthcoming increase in LNG
production capacity the LNG plant had been operating at a small loss because of
the low throughput. The pro forma gross assets of Green Energy were RMB 223
million (14.8 million) at end December 2006 and turnover for the year to
December 2006 was RMB 144 million (9.6 million) based on PRC accounting
standards. Fortune Oil plans to refinance its shareholder loan via local bank
financing in order to increase equity returns.



Green Energy has unique skills in China to design and implement gas distribution
technologies, given its background as Sinopec's LNG base. Green Energy has
already been providing technical assistance in the development of other LNG
liquefaction plants now operating or under construction in China. These plants
enable gas to be trucked to end-users that are not otherwise accessible by
pipeline. As more independent gas fields are developed, for example at Fortune
Oil's Liulin coal bed methane block, there will be an increasing demand for
small-scale LNG plants to monetise the gas.





Mr Qian Benyuan, Chairman of Fortune Oil, commented:



'This is a major step for Fortune Oil, acquiring not only assets to produce and
distribute LNG and CNG, but also acquiring the best LNG expertise in China. For
many of China's recent gas developments such as coal bed methane, LNG offers the
most economic way of transporting gas to end-users, as it will be many years
before the country's pipeline infrastructure can be fully developed. Green
Energy's assets and expertise fit very well with our coal bed methane and gas
distribution companies as we create China's first independent integrated gas
company.'

http://www.proactiveinvestors.co.uk/articles/article.php?FTO

Fortune Oil: Plenty of deals and not much joy for lots of investors

By: Ian Mclelland

Article Date: 29th June 2007

Market: LSE The recent surge in Chinese companies listing in London is something of a new phenomenon for most investors. The majority of these new companies are being brought to us via specialist financial institutions who scour the Chinese landscape looking for businesses that can stand up to the scrutiny of western investors. No model..........................................................full write up on the link.

Surprised not to see more SP activity following the recent announcement.

Very surprised this ones standing still

hello everyone,
i think that to break that 6p share price we will need a big buy from a big guys here , because there is to many profit taken about 5-6p share price.
i was looking the chart today and i think that we will continuos chaneling for a long time around this price, i can see a new hand a cup started again wich is not really good for the company ,to reach 7p is going to be hard but we will do it, i like this company. for penny share price they trade a lot.and they really deserve a better volume. thank you
and i hope hear from you, i wish you good traiding days

i want to post my chart but i dont know how to do it in this web

interim results due this month,they may effect sp.