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.

A new thread for a new era of growth for FTO. It has not been the most loved share in the past and has disappointed many, but certainly has potential going forward, finally :)

PP has a new investor your charts mean nothing to me at the moment but I have just downloaded the Sharescope Demo and manuals to learn further. I am keen to get in on the action earlier such as this share but lack knowledge in making an informed decision.

In your opinion which software at present would most traders recommend and is it worth the money to part time traders who have a full time job?

Is there a quick method of working out the worth of a companies share; it would seem with mining stocks this could prove very difficult.

I had a decent holding a while back but got bored with the lack of interest in this one so got out with a tiny profit. If you think they are coming good this year I might be tempted again as I held them in my ISA. Thanks for the new thread PP.

Technotamed, I do not really use charts that much, I really only look at them to know when the people looking at them might make decisions on technicals, so I am not in a position to recommend anything.

moneyplus, given their position, that China is still growing, the gas projects coming on line, I think they will soon be on a more respectable rating against earnings, I do not think we will see the heady heights of 10p again, but there is a good chance for being 7p to 8p as a new general trading level later this year.

Old news, but shows where it is going on Natural Gas.

http://www.greencarcongress.com/2005/08/fortune_oil_ope.html

Loads of potential here. If you think that the share price dropped last year due to supply problems of the natural gas supply then read the trading update you will see that it should recover from this level.

Also the increase in the stake in other business areas will grow turnover and profit for next year.

They had enough cash to invest in two other companies. Takeover is likely IMO

Good performance today !

New thread I see, I also agree that the share has massive potential, last trading statement added below for anyone intrested and using this thread for info...

Fortune Oil PLC
24 February 2006



24 FEBRUARY 2006



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

Trading Update and New Acquisition



Trading Update

Upon entering a close period ahead of its Annual Results, Fortune Oil is pleased
to announce that underlying operations for the six months ended 31 December 2005
have been in line with expectations as announced with the Interim Results in
September 2005.



In the China natural gas business the Company has been able to meet the surging
gas demand this winter. Throughput at the Tongzhou CNG station has exceeded
expectations, averaging 180,000 cubic metres per day in January.



Acquisition

Fortune Oil has agreed to acquire the shares held by and the outstanding
shareholder loans owing to the Vitol Group of companies in respect of South
China Terminals Ltd, a joint venture with Vitol that holds the interest in the
West Zhuhai Oil Products Terminal, and in respect of Zhanjiang Fu Duo Gas
Company Ltd, a subsidiary of Fortune Oil. The agreed total consideration is
US$5.7 (3.3) million payable in cash. This will increase the effective
shareholding by the Company in the West Zhuhai Oil Products Terminal from 18.5%
to 37% and in the Fu Duo LPG business from 57.5% to 80%.



The principal impact will be that the Company has a more influential role in the
operations and the future of the West Zhuhai terminal, in which PetroChina is
the principal joint venture partner. This is one of the most important
terminals used by PetroChina for import and distribution of gasoline and diesel
in south China and we anticipate continuing growth in its utilisation rate. In
2004, the net profit for the West Zhuhai terminal was 2.2 million while Fu Duo
had a net profit of 75,000. The combined gross assets of South China Terminals
Ltd and Zhanjiang Fu Duo Gas Company at end December 2004 was 7.8 million.



The effective date for the transaction has been agreed to be 31 December 2005.
However, since this is a transaction with a related party, the agreement is
subject to approval by the Company's shareholders and, given the transaction's
relatively small size, shareholder approval will not be sought until the AGM on
21 June 2006. A further announcement on this will follow in due course.



New Appointment

The Company is pleased to announce that Mr. Tian Jun has been appointed as Chief
Operating Officer for the Company's China operations. Mr. Tian Jun received a
degree from Beijing University and a PhD in Economics from the University of
London, after which he worked in the City of London. He has been with the
Fortune Oil Group of companies for seven years, acting as General Manager of
Maoming King Ming Petroleum Company and Deputy General Manager of South China
Bluesky Aviation Oil Company. Mr. Tian Jun's appointment will strengthen the
corporate management team and enhance our China operations, with an initial
focus on the natural gas business.



The Group's annual results will be announced in late April 2006. A presentation
of the results will be held at our AGM on Wednesday 21 June 2006 at the Oriental
Club, Stratford House, Stratford Place, London W1C 1ES.





ENQUIRIES:


Fortune Oil PLC
Bruce McGowan - Executive Vice Chairman Tel: 020 7824 8411 (UK)
John Pexton - Deputy Chief Executive Tel: 00 852 2583 3113 (Hong Kong)

Pelham Public Relations Limited
Archie Berens Tel: 020 7743 6679
or 07802 442 486




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

The chart is looking good for a trend breakout, a move through the 50 day MA could lead us to much higher places, and its good being on the back of the trading update.

So true PapalPower.

Moving up now, will it break through MA50, that will be a key sign of strength if it can.

jeez might do a charles and go and talk to the plants or watch them grow lol ,this is a boring share !! not tempted to sell tho , hold a big wedge of these ,a bit of pr would be nice even if its just to show someones awake in the firm lol

FTO is not moving anywhere...how boring

True at the moment. But that's what posters were saying about PXC not so long ago.....

Its having another go at breaking through again anyway.

http://www.rigzone.com/news/article.asp?a_id=30360

Thursday, March 16, 2006

China could start work on a second east-west gas pipeline within the next five years, said a researcher with Chinese oil major China National Petroleum Corp (CNPC).
Liu Keyu, deputy director of the CNPC's Economics and Technology Research Institute, said at a forum in Beijing that work on the project forms part of the government's five-year plan, which runs from 2006 to 2010.
China already has one gas pipeline running from the country's west to Shanghai on the east coast.
Liu did not give further details about the plans for the second pipeline, saying they depend on developments in Sino-Russian energy cooperation.
The local media have reported that China is studying the feasibility of a second east-west pipeline, this time from Xinjiang province to Guangzhou in the south.
Liu said China's natural gas reserves still have a lot of potential, since only 600 million cubic meters of the 14 trillion available have been exploited so far.
However, China is also looking to Russia to help sate its growing hunger for energy, given the size of its neigbor's oil and natural gas reserves.
The media have reported that gas from a second east-to-west pipeline could eventually come from Russia or Kazakstan.
Russia's ambassador to China Sergei Razov said at a media briefing in Beijing earlier today that Russian companies are studying the possibility of supplying natural gas to China.
Liu predicted that China's annual demand for natural gas will rise to 100 billion cubic meters by 2010, with 30-40 percent of that total to be met by imports.
That demand could double to 200 billion cubic meters in 2020, he added.

great info,PP, but how is it expected to affect share price-is it a good time to buy?

both the FTO threads have been posting almost dailt articles from various chinese papers/bulletins for ages
china goes from strength to strength
articles to back it up daily

FTO share price ???????????????????/

gone nowhere

(holding xs 1m for ages)

kaymar, its all good news for the long term for FTO, but will have no effect on the short term at all.