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.

http://www.fortune-oil.com/en_us/financial_calendar.htm

ok cwman thank you very much

As expected solid step by step development fairs well for the future.

Investors favourite, Fortune OIL (LSE: FTO), the UK listed, Hong Kong based oil and gas provider, today confirmed a doubling of LNG output from its Henan, China, based plant, a JV venture, named Henan Fortune Green Energy. (FTO 51%)

The increase in production is a direct result of FTO investing 4.7 million, as recently as June 2007, in return for a 51% stake in the Henan LNG and CNG business, which had been struggling to increase output due to limited inlet compression capacity.

Following the installation of the new compressors, the plant has been fully tested running at the maximum design rate of 150,000 cubic metres per day of LNG, which would produce annual revenue of 8.500, 000 at current Chinese LPG prices.

FTO is supplied by Sinopec, who have recently made further discoveries in their Zhongyuan Field, ensuring they can fulfil their supply contracts with FTO.

So where the hell's the share price surge then?

Fortune Oil is making an initial investment of 1.4 mln stg to buy a 50 pct interest in the coal bed methane joint venture company China United Shanxi CBM Company Ltd with Shanxi government and China United Coalbed Methane Corp Ltd.

The Hong Kong-based group, which invests and manages oil and gas infrastructure projects, said it will fund this investment from its term loan facility and that it will hold a combined 50 pct stake in the joint venture. Fortune Oil said it expects the joint venture to be earnings enhancing from 2008.

Yep! and still the share price doesn`t move.

Relax, at least the price hasn't fallen like so many companies recently. Fortune, will pick up.

Interim results out Monday 24th September 2007.

interim results
eps per share grew by 80% etc!!!
excellent set of results.
should effect sp.

Excellent news as expected and more. This ones progressing nicely and with the partnership with the chinese government going very well this could be another (griffin gfm) chinese small cap success story.

Griffin were miners though, see your point though in relation to foreign sucess in China...

Fortune Oil PLC
24 September 2007

24 SEPTEMBER 2007



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


Announcement of Interim Results for 6 Months Ended 30 June 2007


Fortune Oil focuses on oil and gas supply and infrastructure projects in China.
The Company is quoted on the full list of the London Stock Exchange and has its
headquarters in Hong Kong.



FINANCIAL PERFORMANCE


* Revenues including share of jointly controlled entities increased by
26 per cent to 115.0 million (restated 2006: 91.2 million).


* Profit from operations increased by 44 per cent to 5.0 million (2006:
3.5 million).


* Earnings per share grew by 80 per cent to 0.14p (2006: 0.08p), a
record first half performance for Fortune Oil.


* Sales of natural gas almost tripled to 105 million cubic metres.


* Net profit at Bluesky almost doubled to 6.5 million with volume sales
up by 11 per cent and increased margin resulting from government
compensation mechanism.


* US$50 million loan facility signed with syndicate of international banks.


OPERATIONAL HIGHLIGHTS


* Significant progress in developing an independent integrated gas business
with Fortune Oil becoming the first foreign company in China to produce
and distribute both LNG and CNG (liquefied and compressed natural gas).


* Partnership established with Chinese government for utilisation of gas
from coal reserves in Shanxi Province.


* Ongoing drilling of pilot gas production wells to exploit the estimated
40 billion cubic metres of coal bed methane at the Liulin block in
Shanxi Province.


* Continued growth in volumes and profitability in the oil sector operations.


Mr Qian Benyuan, Chairman of Fortune Oil, commented:



"Fortune Oil performed very well in the first half of 2007 with revenues,
profits from operations and earnings per share all increasing strongly. We are
now building a significant gas business, from upstream supply to downstream
distribution. Combined with ongoing growth in our oil sector operations this
promises an exciting and prosperous future for the Company and its
shareholders."



ENQUIRIES:

Fortune Oil PLC Tel: 00 852 2583 3113
(Hong Kong)
John Pexton, Deputy Chief Executive




Pelham Public Relations Tel: 020 7742 6679 / 07802 442486
Archie Berens




FORTUNE OIL PLC


Announcement of Interim Results for 6 Months Ended 30 June 2007



CHIEF EXECUTIVE'S REVIEW



Fortune Oil performed very strongly in the first half of 2007 as earnings
attributable to shareholders increased 80 per cent to 2.4 million. The most
significant contribution was the recovery in Bluesky's operating margin although
there was an increase in profit contribution from every other Group business.
Fortune Oil continues to benefit from the strong growth of China and our unique
positioning in the China oil and gas markets.



Results for the six months ending 30 June 2007:



* Revenues including the Group's share of jointly controlled entities
increased to 115.0 million, up 26 per cent from the same period last year.


* Profit from operations increased by 44 per cent to 5.0 million.


* Retained profits attributable to equity shareholders rose to 2.4 million
and earnings per share grew to 0.14 pence, an increase of 80 per cent
over the same period in 2006.


* Volume at Bluesky increased by 11 per cent and the increased margin from
the compensation mechanism resulted in a doubling of Bluesky's profit
contribution compared to the first half of 2006.


* Volume sales of natural gas almost tripled to 105 million cubic metres
and the profit contribution increased 53 per cent compared to the same
period in 2006.


* The above record improvement was even higher in RMB terms, the primary
currency of our operations, because of a 6 per cent strengthening of
sterling against the RMB.



Operational Progress



This year we have made major strides in creating an independent integrated gas
business. In July we acquired control of Henan Fortune Green Energy Development
Company, a LNG (liquefied natural gas) and CNG (compressed natural gas) business
originally developed within Sinopec. We also recently announced a partnership
with the Chinese government for the utilisation of gas from coal reserves
throughout Shanxi Province. This will take advantage of the Group's expertise
in distributing natural gas as CNG, LNG or piped gas and will complement our
growing downstream gas operations.



At the Liulin block in Shanxi Province we now have two pilot wells in dewatering
phase prior to producing CBM (coal bed methane) and have drilled further data
wells to exploit the estimated 40 billion cubic metres of gas resource.



Our new investments have been funded through a US$50 million loan facility
signed in April with a syndicate of international banks in Hong Kong.



Outlook



Fortune Oil has become the first foreign company to produce and distribute both
LNG and CNG in China. Our experience with CBM development and gas distribution
in Shanxi Province has now enabled us to create a unique platform with the
provincial and national governments to access further gas in the province and to
expand our downstream network. China is putting increasing emphasis on the
safe and efficient utilisation of gas from coal seams and we will be at the
heart of this development. Combined with ongoing growth in our oil sector
operations this promises an exciting and prosperous future for the Company and
its shareholders.





BUSINESS REVIEW



CHINA REVIEW



Economic Growth



The PRC government continues to tighten monetary policy in order to curb the
burgeoning demand growth and consequent inflation. The consumer price index
rose by 6.5 per cent year-on-year to August 2007 and the central bank (the
Peoples' Bank of China) has been steadily increasing interest rates in response
to the 10-year record inflation rates. These moves reflect the central bank's
confidence in China's strong growth prospects despite the recent problems in
global markets as other central banks plan cuts in interest rates. This
confidence has been shared by investors in China's stock markets, which have
risen substantially as many of the domestic companies report strong earnings
growth.



China's demand for crude oil grew by 7.7 per cent year on year for the first
half of 2007 but most of this increase in demand was met by imports, according
to the National Bureau of Statistics. For the past five years the government
has gradually stepped up the domestic prices of transportation fuels as
international prices have increased, although domestic prices have been
generally kept below international levels. Despite these rising prices there is
little noticeable impact on the rising domestic appetite for road and air
travel.



Gas Market Developments



The natural gas market in China has been developing in the way previously
anticipated by Fortune Oil. Supply of natural gas as a clean fuel in China
continues to lag demand, particularly for residential and commercial customers.
The PRC government has recognised the need to ensure adequate supplies as the
gas market expands, initially through importing LNG by sea and then by importing
piped gas from Russia and Turkmenistan. The negotiated LNG price for the first
LNG terminal in China, which started up in 2006 in Guangdong, was set at a
historical low and plans for further terminals were delayed when international
prices increased. However China has now rejoined the global gas markets as
PetroChina recently agreed long term LNG supply contracts with Australian
suppliers at international market prices, which are currently three times higher
than that for Guangdong.



The NDRC (National Development and Reform Commission), the government body
responsible for energy policy, has reiterated that prices for domestic gas will
continue to increase and will eventually be linked to international prices.
Domestic production of gas will be encouraged and priority will be given to
utilisation of gas for residential, commercial and vehicular use, particularly
in areas such as Shanxi province where coal will remain the primary source of
power. These assumptions have underpinned Fortune Oil's strategy in developing
an integrated gas distribution business, focusing particularly on Shanxi
Province.



Coal Seam Gas



There is an increasing government focus on ensuring the safe and efficient
production of coal, which will be the cheapest and dominant source of energy for
China for the foreseeable future. Incentives have already been announced for
coal mines to extract gas from coal seams prior to mining and we expect
regulatory changes to reinforce these objectives. Few of these coal mine
companies can mobilise the expertise for the required drilling operations, and
even fewer are able to then efficiently utilise or distribute this gas to the
local communities. Fortune Oil is well positioned in the CBM development and
gas distribution industries to help China address this major social and
environmental challenge.




OIL SECTOR OPERATIONS



South China Bluesky Aviation Oil Company



Bluesky's sales of jet fuel increased by 11 per cent to 777,000 tonnes in the
first half of 2007 (2006: 700,000 tonnes). The major growth continues to be at
the Guangzhou Baiyun International Airport, where there is ongoing expansion of
the existing refuelling facilities in addition to construction of the new
Federal Express hub. Both passenger and cargo traffic continue to grow
significantly in China and, despite the high jet fuel prices, Bluesky's major
customers such as China Southern Airlines have recently returned to profit and
are making large orders for additional aircraft.



Net profit at Bluesky rose by 97 per cent to 6.5 million (RMB 98.7 million)
compared to 3.3 million (RMB 46.6 million) for the same period last year. The
temporary decline in operating margin in early 2006 had been due to disparities
in price between domestic and international jet fuel. The PRC government
instituted measures in mid-2006 obliging the airlines to compensate jet fuel
suppliers for such disparities, which has since restored the operating margin.



Bluesky continues to invest in new infrastructure as many of the airports
expand. For example, in order to meet the growth in passenger traffic, a new
terminal has recently opened at Zhengzhou with new international routes, a new
terminal is under construction at Wuhan, a new terminal is being designed for
Changsha and relocation of the Shantou airport is currently at the planning
stage. For each of these developments Bluesky needs to plan and invest in new
facilities for jet fuel supply, storage and refuelling. More refining capacity
is being constructed in southern China, particularly at Guangzhou and Hainan,
which will help meet the incremental fuel demand.



Maoming Single Point Mooring



In the first six months of 2007 the Maoming SPM delivered crude oil from 24
tankers (2006: 23) with a total throughput of 4.8 million tonnes (2006: 5.3
million tonnes). Accrued demurrage charges totalling 0.6 million (RMB 9.5
million) were written back such that the MKM joint venture's earnings rose to
3.0 million (RMB 45.0 million) for the period (2006: 2.7 million, RMB 38.9
million). The facility continues to operate efficiently with minimal expense
required for maintenance of the buoy and subsea pipeline and MKM continues to
have an accident-free and spill-free record.



Products Terminals and Supply



At the West Zhuhai Terminal (South China Petroleum Company) the throughput in
the first half of 2007 was 1.0 million tonnes, similar to the previous period.
The net profit contribution to Fortune Oil increased to 0.3 million (RMB 4.2
million) from 0.2 million (RMB 2.8 million) in the same period last year. This
was principally due to the Company's shareholding increasing from 18.5 per cent
to 37 per cent following the acquisition of Vitol's interests in 2006. In 2007
Fortune Oil also received the first ever dividend payment from the West Zhuhai
joint venture, being 0.5 million (RMB 7.4 million) in respect of the 2006
results following repayment of the joint venture bank loan last year.



The major customer of the terminal continues to be PetroChina but 9 per cent of
the storage revenue for the period came from a local independent petrochemical
company. This is the first third party use of the terminal's oil products
capacity since its construction ten years ago and reinforces our confidence in
the terminal's future as an independent storage facility.



Operations at the Zhanjiang Fu Duo LPG joint venture continue to be contracted
out to management. One subsidiary was sold in July 2007 and there still remains
some value to the Company in the land rights.



The Trading business has continued to develop its operations in 2007,
particularly in the cross-border supply of non-regulated oil products and
petrochemicals. The trading business, including the Shantou terminal and
Beijing retail stations, increased revenues to 32.2 million (RMB 490.9 million)
(2006: 19.1 million, RMB 274.7 million) with a half year operating profit of
0.2 million (RMB 3.7 million).





NATURAL GAS



Fortune Gas



Sales of natural gas soared to 105 million cubic metres (m3) in the first half
of 2007, a 171 per cent increase over the same period last year. This already
represents 86 per cent of total sales in 2006 (122 million m3). Growth came
from increased utilisation at existing operations, in particular sales of CNG at
Tongzhou in Beijing and increased throughput in spur pipelines. Connection fees
were also generated from 4,660 new customers who were connected to our city gas
networks in the period.



As a consequence the total revenues from natural gas sales doubled to 10.4
million (RMB 157.8 million) (2006: 5.2 million, RMB 74.1 million). The
earnings contribution increased by 53 per cent to 0.8 million (RMB 11.6
million) in the first half of 2007 (2006: 0.5 million, RMB 7.2 million).



The existing joint ventures continue to expand their operations. In particular
the Tianjin Tianhui joint venture (Fortune Oil indirect interest of 40 per cent)
will invest 1.7 million (RMB 26 million) in constructing two pipelines, fifty
per cent of which will be financed from local banks. These will enable the
joint venture to supply Tuanbo New City, a suburb of Tianjin with a current
population of 150,000 and which has been selected as a major development area.
In addition the two city gas joint ventures at Qufu in Shandong Province are now
being connected by gas pipeline to the PetroChina gas network, which will ensure
a more reliable supply of gas at a lower price. In locations such as Qufu new
retail CNG stations are being developed as the local government encourages the
growth in natural gas powered vehicles.



In early 2007 Fortune Oil obtained approvals to establish a China-registered
holding company, Fortune Gas Investment Company Limited, which will help develop
and manage an integrated gas business in a tax-efficient manner. The natural
gas subsidiaries are gradually being injected into this holding company, which
is now also being used as a primary acquisition vehicle, for example in relation
to Green Energy.



Green Energy LNG/CNG



In June 2007 Fortune Oil announced the acquisition of a 51 per cent controlling
interest in Henan Fortune Green Energy Development Company ("Green Energy")
which operates an LNG manufacturing plant, CNG retail stations and a fleet of
LNG/CNG road tankers. Green Energy was previously owned by Sinopec and it was
the first company in China to produce and sell LNG. Fortune Oil provided 4.7
million (RMB 71.4 million) in new equity and a loan of 4.9 million (RMB 74.3
million) to Green Energy in exchange for a controlling interest. Payment was
made in July after drawdown from the Company's loan facility. The remaining 49
per cent interest in Green Energy is held by the employees, who have significant
expertise in LNG and CNG technology.



The supply of gas to Green Energy's LNG plant and CNG stations is guaranteed by
Sinopec from its Zhongyuan gas field. The agreement with Sinopec includes an
evergreen minimum volume of 130 million m3 per year from 2009, which is a small
fraction (eight per cent) of the field's current production. Following Fortune
Oil's investment in Green Energy new compressors have now been installed to
raise the throughput of the LNG plant to its design capacity of 55 million m3
per year. The guarantee from Sinopec provides opportunities for Green Energy to
increase gas sales through investment in new LNG facilities and CNG stations.


This acquisition is a major step forward for Fortune Oil in creating an
integrated gas company as LNG and CNG road tankers are now vital means of
transporting natural gas in China. Green Energy substantially increases the
Company's gas supply and sales network and also brings the ability for Fortune
Oil to design, construct and operate LNG production facilities in the future.
This will be a key strategic strength for Fortune Oil as we exploit
opportunities to produce and utilise gas such as coal bed methane from isolated
locations.



Shanxi CBM Distribution



Fortune Oil recently announced an investment to secure a 50 per cent interest in
China United Shanxi CBM Company Limited (Shanxi CBM) for the utilisation of CBM
throughout Shanxi Province. Our partners in this joint venture are Shanxi
Energy Industries Group Ltd, an arm of the Shanxi provincial government, and
China United Coalbed Methane Corporation Ltd (CUCBM), the principal national
government body for CBM development in China. This is the first time that a
foreign company has partnered the Chinese government in such a CBM distribution
venture.



The Shanxi CBM joint venture will be a major platform for Fortune Oil to collect
and market coal seam gas in Shanxi Province through the acquisition and
development of gas infrastructure in this gas-rich region. Investment by
Fortune Oil in this platform, initially at RMB 21 million (1.4 million) for
construction of new retail CNG stations, will increase as the joint venture
provides greater access to gas and downstream opportunities.





COAL BED METHANE DEVELOPMENT



Significant progress has been made at the Liulin CBM block in Shanxi Province,
where Fortune Oil has a 60 per cent controlling interest in Fortune Liulin Gas
Company (FLG), the foreign party in a production sharing contract with CUCBM.
In January 2007 FLG partnered with a Shanxi government laboratory to assess the
gas resource at Liulin, now estimated to be 40.5 billion cubic metres. In April
2007 FLG commenced the testing of two vertical pilot wells (FL-EP1 and FL-EP2),
which are still in the dewatering phase. New pumps will soon be installed to
speed up the dewatering process and Fortune Oil is confident of producing gas
from the pilot wells.



FLG has recently completed drilling and coring from two datawells and is now
spudding two more pilot production wells. The exploration strategy is to obtain
sufficient production and geology datapoints so that FLG can meet the government
requirements on reserves certification prior to submission of an overall
development plan in 2008. Fortune Oil expects to extend the current exploration
period of the Liulin block to beyond April 2008 in order to explore other
sectors of the block.



Expenditure by Fortune Oil in respect of FLG totalled 0.5 million (RMB8.2
million) to 30 June 2007 plus accrued commitments of 0.8 million (RMB 11.9
million). This satisfies Fortune Oil's US$2.5 million expenditure obligation in
acquiring a 60 per cent interest in the FLG joint venture with Molopo. Most of
the exploration costs will be recoverable in the production period under the
production sharing contract.



The CBM industry in China is at an early stage of development and no production
sharing contract is yet at the production stage with commercial gas sales.
However, there is increasing government pressure to develop this industry, given
the vast resources of coal seam gas in China, and the regulations for coal bed
methane and coal mine methane will also develop further. The Liulin block is
regarded by CUCBM as one of China's top-ranked CBM blocks and is situated in the
middle of the gas-rich Hedong plateau. Fortune Oil's experience in exploring
this block has enabled the Company to forge close links with the key CBM and gas
distribution companies in Shanxi Province. As a result Fortune Oil was invited
by the Chinese government to invest in the Shanxi CBM distribution business and
to become one of only two foreign founding members of the Coal Bed Methane
Industry Association of Shanxi Province.





SOCIAL RESPONSIBILITY



The Group continues to develop and implement policies for enhancing the health
and safety of our employees and our impact on local communities and the
environment. As China's economy develops there is increasing importance placed
on enhancing standards by both government and consumers. As a result the nation
continues to upgrade regulations relating for example to employment and the
environment. China is finding its own path in attaining sustainable economic
growth, modernising while not necessarily westernising.



Investment in road infrastructure has been critical factor in allowing China's
economic growth to exceed that of other emerging nations and this has also been
a crucial factor in enabling the Company to source and distribute natural gas.
However road safety remains a major issue in China and steps are being taken to
train Group employees so as to reduce the number of road accidents. As part of
the Company's ongoing environmental programme vapour recovery systems are now
being installed in the gasoline retail stations so as to reduce emissions while
filling the storage tanks.





FINANCIAL REVIEW



Financial Results



Group revenues (including share of jointly controlled entities) increased by 26
per cent to 115.0 million in the first half of 2007 (restated 2006: 91.2
million), primarily due to a 13 million revenue increase in the Company's
trading business and higher sales in Bluesky and Fortune Gas. The Group profit
from operations was 5.0 million, an increase of 44 per cent above the previous
period (2006: 3.5 million).



The profit attributable to equity shareholders increased by 80 per cent to 2.4
million (2006: 1.4 million), a record first half performance for Fortune Oil.
The earnings per share were 0.14 pence and there was no change in issued share
capital during the period.



Net assets of the Group increased to 54.4 million (2006: 50.1 million). The
principal capital expenditure for the period was 1.8 million investment in CBM
assets (including the transfer of assets from Molopo into FLG following the
finalisation in April of agreements with CUCBM) and 1.0 million investment in
CNG distribution and pipeline assets. The cash balance of 18.3 million at 30
June 2007 included funds earmarked for investment in Green Energy. Accounts
receivables increased to 11.1 million (2006: 5.6 million) principally because
of payments due from Sinopec to the MKM joint venture. These receivables and
corresponding accounts payable by MKM are now in the process of being settled.



While the most significant contributions to growth in earnings were from the
Bluesky and Fortune Gas operations, almost every Group company increased
profitability via higher volume sales. The long-established Bluesky and Maoming
SPM joint ventures still provide the majority of the Group's profit but the
contribution from the natural gas operations has now increased to 15 per cent of
Group operating profit.



Operating margins for each company depend on the characteristics of their
business. For example typically the margins for a tolling operation such as the
Maoming SPM would be higher than those for a trading business, the margins for
CNG sales would be higher than those for a gas pipeline tarriff. Therefore the
overall margin will change as the revenue mix changes. Fortune Oil management
track net profit and overall development strategy rather than overall margin in
guiding the business growth.



All of the Group's operating income and most of the expenses are denominated in
renminbi (RMB). The RMB continues to strengthen against the US dollar as the
currency peg is loosened and the RMB/US$ exchange rate decreased 5 per cent to
7.6 over the 12 months to June 2007. However this has been offset by the
strengthening of the pound sterling such that the profit and loss results are 6
per cent higher if reported in RMB.



Financing and Tax



In April 2007 the Company signed a dual currency (US dollar/Hong Kong dollar)
US$50 million loan facility with 18 international and regional banks. The
facility has a tenor of three years with a margin of 1.1 per cent above LIBOR or
HIBOR. The first drawdown was in June 2007 such that net interest payments in
the first half of 2007 were similar to the same period in 2006 at 0.2 million,
and the Group maintained a zero net gearing at the end of June 2007. Full
drawdown is expected by the end of the availability period in October 2007 and
the proceeds are being utilised for investments in new projects.



Trade finance facilities totalling US$100 million have also been signed with
Commerzbank, DBS, Standard Chartered and UOB in support of anticipated growth in
the cross-border supply business.



Under the unified PRC income tax law effective from January 2008, the standard
tax rate for all companies will be 25 per cent, but with a four year grandfather
provision for companies currently taxed at a lower rate such as Fortune Oil's
gas joint ventures. The PRC authorities have also announced that CBM, gas
processing and distribution businesses will qualify as "state-encouraged" and
therefore incur a lower tax rate of 15 per cent. Therefore we expect the new
tax laws to have a minimal impact on the Company's profit going forward.




FORTUNE OIL PLC


Announcement of Interim Results for 6 Months Ended 30 June 2007


GROUP INCOME STATEMENT
(restated)
6 months 6 months 12 months
ended ended ended
30.06.07 30.06.06 31.12.06
Amount in '000 (Unaudited) (Unaudited) (Audited)

Revenue including share of jointly controlled entities 115,015 91,178 175,771
Share of revenue of jointly controlled entities (69,026) (61,473) (132,500)
Group revenue 45,989 29,705 43,271
Cost of sales (40,624) (25,041) (33,912)
Gross profit 5,365 4,664 9,359
Exceptional gains - - 2,551
Exceptional charges - - (834)
Administrative expenses (2,351) (2,188) (4,444)
Share of results of jointly controlled entities 1,993 1,010 2,942
Profit from operations 5,007 3,486 9,574
Finance costs (301) (236) (471)
Investment income 50 79 168
Profit before taxation 4,756 3,329 9,271
Taxation (338) (290) (617)
Profit for the period / year 4,418 3,039 8,654

Attributable to
Equity shareholders 2,438 1,355 4,307
Minority interests 1,980 1,684 4,347
4,418 3,039 8,654
Earnings per share
Basic 0.14p 0.08p 0.24p
Diluted 0.14p 0.08p 0.24p




FORTUNE OIL PLC

Announcement of Interim Results for 6 Months Ended 30 June 2007

GROUP BALANCE SHEET


6 months 6 months 12 months
ended ended ended
30.06.07 30.06.06 31.12.06
Amount in '000 (Unaudited) (Unaudited) (Audited)
Assets
Non-current assets
Property, plant and equipment 24,028 24,524 24,539
Investment properties 1,540 1,679 1,577
Goodwill 920 1,002 943
Other intangible assets 2,722 834 992
Investments in jointly controlled entities 22,083 19,025 21,083
Other investments 99 109 101
51,392 47,173 49,235
Current assets
Inventories 849 2,411 1,070
Trade and other receivables 11,141 5,583 6,249
Cash and cash equivalents 18,344 13,135 8,202
30,334 21,129 15,521
Total assets 81,726 68,302 64,756

Liabilities
Current liabilities
Borrowings 2,540 2,168 3,427
Trade and other payables 7,619 9,257 5,362
Current tax liabilities 226 186 170
10,385 11,611 8,959

Non-current liabilities
Borrowings 16,683 6,288 5,567
Deferred tax liabilities 265 307 264
16,948 6,595 5,831
Total liabilities 27,333 18,206 14,790

Net assets 54,393 50,096 49,966
Shareholders' equity
Ordinary shares 18,363 18,361 18,363
Treasury shares (594) (775) (795)
Share premium account 22 37,353 22
Translation reserve (3,391) (690) (2,717)
Retained earnings 26,112 (16,630) 23,805
Total shareholders' equity 40,512 37,619 38,678
Minority interests 13,881 12,477 11,288
Total equity 54,393 50,096 49,966





FORTUNE OIL PLC

Announcement of Interim Results for 6 Months Ended 30 June 2007

GROUP CASH FLOW STATEMENT
Restated
6 months 6 months 12 months
ended ended ended
30.6.07 30.6.06 31.12.06
Amount in '000 (Unaudited) (Unaudited) (Audited)
Cash flows from operating activities
Profit for the period / year 4,418 3,039 8,654
Adjustments for:
Share of post-tax results of jointly controlled entities (1,993) (1,010) (2,942)
Taxation 338 290 617
Amortisation and depreciation 1,307 1,232 2,508
Impairment - 58 834
Loss on disposal of property, plant and equipment 3 - 35
Profit on disposal of subsidiary undertakings - - (188)
Share-based payments 70 - 139
Investment income (50) (79) (168)
Finance costs 301 236 471
Decrease/ (Increase) in inventory 53 (405) 842
(Increase)/ decrease in trade and other receivables (4,880) 70 (706)
Increase/ (decrease) in trade and other payables 2,245 (95) (3,428)
Cash generated from operations 1,812 3,336 6,668


Finance costs (301) (236) (471)
Taxation paid (278) (329) (665)
Net cash from operating activities 1,233 2,771 5,532
Cash flows from investing activities
Investment income 50 79 168
Dividend received from jointly controlled entities 494 47 2,463
Payments for property, plant and equipment (985) (678) (4,708)
Payments for intangible assets (1,769) - (223)
Receipt from disposal of subsidiary undertakings - - 305
Receipt from disposal of property, plant and equipment - - 66
Investment in jointly controlled entities - - (3,072)
Repayment from jointly controlled entities (28) 8 -
Loan to jointly controlled entities - - (335)
Total cash flows used in investing activities (2,238) (544) (5,336)
Cash flows from financing activities
Proceeds from issue of share capital - 4 34
Loan from minority shareholders 159 68 429
Repayment of loans to minority shareholders - - (441)
Dividend paid to minority shareholders - - (3,265)
Capital contribution from minority shareholders 828 - -
Repayment of loans - - (689)
Increase in loans 10,144 (90) 1,663
Total cash flows from/(used in) financing activities 11,131 (18) (2,269)
Net increase/(decrease) in cash and cash equivalents 10,126 2,209 (2,073)
Cash and cash equivalents at beginning of the period/year 8,202 11,713 11,713
Effect of foreign exchange rate changes 16 (787) (1,438)
Cash and cash equivalents at end of the period/year 18,344 13,135 8,202




FORTUNE OIL PLC

Announcement of Interim Results for 6 Months Ended 30 June 2007


GROUP STATEMENT OF CHANGES IN EQUITY




Share Total
Ordinary Treasury Premium Translation Retained Shareholders' Minority Total
Amount in '000 Shares Shares Account Reserve Earnings Equity Interests Equity

Balance at 1 January 2006 18,351 (760) 37,344 2,062 (17,985) 39,012 11,726 50,738
Issue of ordinary shares 10 - 9 - - 19 - 19
Movement in treasury shares - (15) - - - (15) - (15)
Currency translation
differences
- Group - - - (1,412) - (1,412) (933) (2,345)
- Jointly controlled - - - (1,340) - (1,340) - (1,340)
entities
Profit for the period - - - - 1,355 1,355 1,684 3,039

Balance at 30 June 2006 18,361 (775) 37,353 (690) (16,630) 37,619 12,477 50,096

Balance at 1 January 2007 18,363 (795) 22 (2,717) 23,805 38,678 11,288 49,966
Movement in treasury shares - 201 - - (201) - - -
Capital contribution by
minority shareholders - - - - - - 828 828
Currency translation
differences
- Group - - - (148) - (148) (221) (369)
- Jointly controlled - - - (526) - (526) - (526)
entities
Profit for the period - - - - 2,438 2,438 1,980 4,418
Share-based payments - - - - 70 70 - 70
Dividend paid - - - - - - 6 6

Balance at 30 June 2007 18,363 (594) 22 (3,391) 26,112 40,512 13,881 54,393



FORTUNE OIL PLC


Announcement of Interim Results for 6 Months Ended 30 June 2007



NOTES



1. Basis of preparation and accounting policies



The interim financial statements for the six months to 30 June 2007 have been
prepared on the basis of the accounting policies set out in the Company's
financial statements for the year ended 31 December 2006. These accounting
policies are drawn up in accordance with International Accounting Standards
(IAS) and International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board. These interim financial statements
have been prepared in accordance with IAS 34 'Interim financial reporting'.



The financial information for the six months ended 30 June 2007 and 30 June 2006
was neither audited nor reviewed by the auditors and does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985. A copy
of the statutory accounts for the year to 31 December 2006 has been delivered to
the Registrar of Companies. The auditors' report on those accounts was
unqualified and did not contain statements under section 237 (2) or (3) of the
Companies Act 1985.





2. Segmental Analysis


(a) Business segments
Single point
mooring facility Aviation Natural Gas

2007 2006 2007 2006 2007 2006
Amount in '000
Revenue including share of 6,036 5,778 64,171 59,028 10,368 5,164
jointly controlled entities
Share of revenue of - - (64,171) (59,028) (1,923) -
jointly controlled entities

Group revenue 6,036 5,778 - - 8,445 5,164

Profit from operations (including 3,173 2,863 1,572 797 764 500
share of results of jointly controlled
entities)
Finance costs
Investment income
Profit before taxation
Taxation
Profit for the period

Attributable to
Equity shareholders
Minority interests




2. Segmental Analysis (continued)

Oil Trading Others** Central Group
& storage* administration
(restated) (restated)
Amount in '000 2007 2006 2007 2006 2007 2006 2007 2006

Revenue including share of 32,245 19,147 2,195 2,061 - - 115,015 91,178
jointly controlled
entities
Share of revenue of (737) (408) (2,195) (2,037) - - (69,026) (61,473)

jointly controlled
entities
Group revenue 31,508 18,739 - 24 - - 45,989 29,705
Profit from operations (230) (315) 113 46 (385) (405) 5,007 3,486
(including share of
results of jointly
controlled entities)
Finance costs (301) (236)
Investment income 50 79
Profit before taxation 4,756 3,329
Taxation (338) (290)
Profit for the period 4,418 3,039
Attributable to
Equity shareholders 2,438 1,355
Minority interests 1,980 1,684



* Includes overheads in Hong Kong/PRC offices.



The comparatives for the six months period ending 30 June 2006 have been
restated to reflect the sub-contracting out of operations in certain subsidiary
companies within the "Oil Trading and storage" business segment. The impact of
this change has been to reduce revenue by 3.7 million. This adjustment has no
impact on previously reported profits or net assets.



** Others include distribution and CBM unit.



b) Geographical operations



With the exception of operating loss of 343,000 (2006: 345,000) in respect of
central administration in the United Kingdom, all of the Group's activities are
carried out in the PRC and Hong Kong. The Directors are of the opinion that the
PRC and Hong Kong form one geographic segment.



c) Analysis of group revenue

(Restated)
6 months 6 months
ended ended
30.06.07 30.06.06
Amount in '000 (Unaudited) (Unaudited)

Sales of Goods 44,308 28,618
Income from construction contracts 986 802
Rental income 555 246
Other 140 39

45,989 29,705




3. Dividends were not paid in any of the periods reported upon and no
dividend is proposed.



4. Earnings per share has been calculated by dividing earnings
attributable to the shareholders by the weighted average number of shares in
issue during the respective periods, as indicated below:


30.06.07 30.6.07 30.06.06 30.6.06 31.12.06 31.12.06
No. No. No.
'000 pence '000 pence '000 pence
Basic 1,776,967 0.14 1,775,612 0.08 1,775,985 0.24
Share option adjustment 8,000 - 6,732 - 6,281 -
Diluted 1,784,967 0.14 1,782,344 0.08 1,782,266 0.24



5. Copies of the Interim Report 2007 will be sent to shareholders and will
be available from the Group's registered office, 6/F., Belgrave House, 76
Buckingham Palace Road, London SW1W 9TQ, United Kingdom. This statement can
also be downloaded from www.fortune-oil.com.






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

FORTUNE OIL PLC

('Fortune Oil' or the 'Company')



NOTIFICATION OF TRANSACTIONS BY DIRECTORS



Fortune Oil has been notified today by the following Executive Directors of
their purchase of ordinary shares of 1p each in the Company:


Ms Li Ching, Chief Executive Officer, purchased 500,000 ordinary shares at a
price of 5.978 pence per share and 500,000 ordinary shares at an average price
of 5.9984 pence per share both on 2 October 2007, representing 0.055% of the
issued share capital of Fortune Oil.



Following this purchase, Ms Li now has an interest in a total of 17,282,570
shares, representing 0.94% of the issued share capital of the Company, of which
1,300,000 shares are held in a nominee account and she has a beneficial
interest.



Mr John Pexton, Deputy Chief Executive Officer, purchased 160,000 ordinary
shares at a price of 6 pence per share on 2 October 2007, representing 0.009% of
the issued share capital of Fortune Oil.



Following this purchase, Mr Pexton now has an interest in a total of 489,557
shares, representing 0.03% of the issued share capital of the Company.

It has tested 6.2p more than ten times during the last two months but could close above that only once. today is interesting imo

this needs a share consolidation to rise much .........anyone with thoughts on this ?

needs a consolidation really but moving up and volume up as well

good opening is it waking up at last!!!!

still going strong*****

not sure why tho