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.

think it will prob trade in a range where it is now ..........up and down a tad with market conditions but news is whats reqed ..........imho of course

Why the crash. It was 10p two years ago and improved since then.
10-15p a share is more reasonable IMO

No idea ahoj and it's very frustrating!

hi ahoj Q1
This might be of interest 2 U just been looking at the Beijing Olmypics site. Some interesting stuff on CNG provision and the Chinese Governments policy regarding public transport / Beijing Municipal Government. Fortune Oil comes out as the leading provider of CNG to Beijing, providing clean fuel for buses, households and factories with the suggestion that CNG will increase its market share.
Also found this bit which may be of interest www.Greencarcongress.com
with reference to transport strategy.

Thanks Mcmahons,

We had the following news in August 2005 - "Fortune Oil Opens CNG Station in Beijing". http://www.greencarcongress.com/2005/08/fortune_oil_ope.html
And investment in CNG has continued since then.

Fortune Oil worth a couple of times more than when it was 9p late 2004, early 2005. I think analysts will realise the real value of FTO early next year IMO.

bang on ahoj the big boys have not yet seen the potential of fto they dont look at the tiddlers but we do because we are looking for bargain,s and imo we have one here.

Chinese companies are rich enough to buy Rio Tinto. The future is there....

CBM developments not very exciting ?or is it. at least no bad news!

Possibly early days yet, great little company this.

Shell is trying to catch up with Fortune Oil. Shell is gradually recognising the potential http://www.moneyam.com/action/news/showArticle?id=2571572

FTO has been withis its range for three years... It has to catch up with other small oil companies like DGO very fast IMO.

I remember when DGO was valued at around 30M. Almost all analysists were suggesting to sell at the time.....

It is over 2bln now and moving up faster thn ever.

This is like the forgotten oil stock this one, small compared to others.

Yep, It's still too cheap. Yuan effect over a year should add 20% alone. It was 10p about four years ago and has improved dramaticaly since then...!!! DGO was like this when it was around 10-20p..

I added a bit today, as usual at the wrong price, but I just can't watch share prices all the time, still the same : I think this has a great future.

4 years nothing.

my god thats something,.

Don't see how you can compare the two

These 2 companies are very different beasts, but both top class.

Still won't move upwards, come on FTO you can do it, (could be the bad weather in China that is affecting business ! ).

Possibly due for a rise here and an update....sales of fuel have probably rocketed even with a certain amount of disruption due to extreme cold weather !