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.

No wonder DB bought above 9p over a year ago.

Is DB the main shareholder?
What is their average price?

Is China a member of G8? If so CBM development should help it towards any commitment it has made on a global scale. Good all round publicity for Fortune. Now lets not forget there may also be government subsidies for this development which Fortune can also exploit/cost cut with!!

From UK-Analyst: April 18th 2006

An announcement regarding a coal bed methane project pushed shares in Fortune Oil 0.8p higher at 6.05p. The company said it had signed a deal to take a 60% interest in a company formed to develop coal bed methane gas reserves in the Liulin block in Shanxi Province, China. Fortune will make an initial commitment of 2.5 million dollars for field appraisal. The other 40% will be held by Molopo Australia Ltd, an Australian-listed company.

Todays CBM news might explain why Ching Li was happy to stick 297,347 into buying FTO shares at 6.75p last summer.



Director Shareholding RNS Number:8003N
Fortune Oil PLC 20 June 2005
FORTUNE OIL PLC
NOTIFICATION OF DIRECTOR'S DEALING

Fortune Oil PLC (the "Company") was notified today that on 15 June 2005, Ms
Ching Li, a director of the Company, purchased 4,405,150 ordinary shares of 1
pence each in the Company (representing 0.24% of the issued share capital) at a
price of 6.75 pence per share.

Ms Li now holds a total of 14,874,537 shares representing 0.81% of the issued
share capital of the Company.

Results due shortly-which should also keep investors interest here,
from FTO website:

Preliminary Results Announced end April 2006

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


P.S. Last years Preliminary Results were announced: 28 April 2005.

DB paid 9p over a year ago

Nice moves now, getting stronger :)

Going for a new intraday high now :)

Lets see if we can get through 7p. A break through 7.25p would be very significant.

The figures for the CBM project make this look cheap I think.

CBM Partner Web site : http://www.molopo.com.au

Nice, and looking good. Over 7p to buy now, lets break 7.25p then :)

PapalPower, yes the share is indeed moving nicely but I believe we could see around the 10p mark by August. Coal bed methane production isn't exactly rocket science so could well be implemented quickly.

explosive, it was an explosive close today with someone paying 7.5p for an over 600K lump of FTO.

Should be another blue day coming :)

We also have the Prelim Results due around 25th to 27th April 06, so that should provide not only a forward looking statement for the rest of the business (and FTO do generate plenty of profits), but also a chance to further update on the CBM project and also future plans in the front end of the the gas business now.

We are off again :) 8p target today ?? :)

IT IS FLYING ,THIS IS GREAT STUFF,PATIENCE HAS PAID OFF!!!

Certainly very strong :) and hopefully plenty more to come, 8p has been touched this morning, so how about 9p then ;)

MAybe DB didn't make a mistake when bought around 9p over a year ago.

ahoj,

Patience is key!

A good rise on increasing volume bodes well for the results I think!

Dare we breathe the 10p that the sp hit a couple of years ago?? :-)