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.

RNS Number : 3591E
Fortune Oil PLC
18 December 2009

?


18 December 2009




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


Strategic Coal Bed Methane Investment by Arrow Energy International


Fortune Oil is pleased to announce a major strategic alliance signed today with
Arrow Energy International ("Arrow"), a leading Asia-Pacific coal bed methane
("CBM") company, including a staged investment in Fortune Liulin Gas ("FLG")
which operates the Liulin CBM project.


Highlights


* The strategic alliance with Arrow will strengthen Fortune Oil's integrated gas
business, combining Arrow's upstream CBM expertise with Fortune Oil's gas
distribution capabilities and extensive operating experience in China.

* The alliance will extend beyond CBM to the recovery of gas from coal mines,
which is a priority area for China in tackling coal mine safety and climate
change.

* Today Arrow has made an initial investment of US$8 million (GBP5.0 million) in
relation to the Liulin project. This amount increases to a total of US$13.3
million (GBP8.2 million) (of which US$6 million will be invested in FLG and
US$7.3 million will be paid to Fortune Green Energy Limited ("FGE")) for a 35
per cent interest in FLG, following the extension of the Liulin Production
Sharing Contract ("PSC").

* Arrow has been granted the right to invest up to a further US$12.7 million
(GBP7.9 million) in FLG (plus a bonus payment dependent on the level of probable
reserves) for a further 15 per cent interest in the enlarged share capital of
FLG.

* Arrow has been granted a further option to acquire from FGE a 25 per cent
interest in FLG for US$40 million (GBP24.8 million), one condition for which is
that Arrow and Fortune Oil must have co-invested in at least two other CBM PSCs.

* Shell, which owns 10 per cent of Arrow Energy International, will have back-in
rights for investment in Liulin and other CBM projects developed by Fortune Oil
with Arrow
---------------------------

Alliance signed today with Shell backed Arrow Energy Internationalcould be massive news for the future of FTOexciting for me

Me too. I've traded these for over 10 years but it's always been a jam tomorrow share - until now?

I was into these a couple of years ago as it seemed very promising but moved on disappointed. I can't understand why gas shares like this an pci are not very highly valued by the market compared with oil shares. I'm tempted though.

Despite China booming, FTO remains unmoved.

Energy
China Business News Wed, 01/13/2010 - 13:49
Fortune Oil to expand into upstream business
by Terry Wang

Fortune Oil to expand into upstream business
by Terry Wang

China's coal bed methane (CBM) sector, like the wind and solar energy sectors, has entered a boom phase in recent years. As the industry is in its infancy, it has attracted a lot of new investors, from domestic oil giants to local energy producers, private investors and foreign enterprises. In this week's interview, John Pexton, the deputy chief executive officer of Fortune Oil, discusses his company's development plans, as well as his view of China's energy industry, particularly the CBM sector.

"We are really focused on accessing upstream assets and then developing both midstream and downstream assets for the sale of gas, instead of relying solely on downstream connection fees to generate a profit."
John Pexton, deputy chief executive officer of Fortune OilShanghai. January 13. INTERFAX-CHINA - Fortune Oil plc was listed on the main board of the London Stock Exchange in 1993, and has since been involved in the oil and gas business in China, mainly covering natural gas and oil trading, product supply and storage sectors.

In the natural gas sector, Fortune Oil selected an integrated business model to cover the upstream CBM extraction and midstream wholesale business as well as the downstream retail business.

The company has a lot of experience in gas distribution in China. "We have a lot of assets in the mid and downstream businesses. We have two liquefied natural gas (LNG) plants in China and own the largest compressed natural gas (CNG) station in Beijing," Pexton said.

According to Pexton, the company follows a strategy of balanced distribution along the gas chain. Fortune Oil began to control some gas distribution assets starting in 2003, and realized the importance of accessing an independent upstream supply.

"We are really focused on accessing upstream assets and then developing both midstream and downstream assets for the sale of gas, instead of relying solely on downstream connection fees to generate a profit," Pexton said.

As such, Fortune Oil has invested in an upstream project, the Liulin CBM block in Shaanxi Province. Pexton said it is the CBM industry's only state pilot project, under which a state-owned enterprise, in this case China United Coalbed Methane Co. Ltd. (CUCBM), is cooperating with a foreign firm. Under the pilot project guidelines, the two companies are permitted to bypass the standard regulation of having a pre-prepared and approved overall development plan (ODP) prior to engaging in the sale of gas.

The company plans to begin selling CBM from the Liulin project by the end of 2010, with an initial plan to sell it in the form of CNG through a joint venture with CUCBM.

Fortune Oil also recently entered a strategic alliance with Arrow Energy International in December 2009 on the development of CBM. Pexton explained that Arrow's strong technological capacity and wealth of experience was the main draw - factors which trump the importance of capital, in his opinion. He added that Arrow's expertise in upstream and Fortune Oil's expertise in midstream and downstream will make for a powerful partnership.

"We realize that to conduct this type of business, cooperating with experienced companies like Arrow is integral to our future success. Arrow is the right partner, because they are an independent company with a lot of field development in Australia," he said.

The Liulin project is Fortune Oil's only upstream project at the moment, but the company is exploring other CBM opportunities in China. Pexton anticipates that the partnership with Arrow will allow the company to chase more upstream assets, although Pexton has acknowledged that China's CBM industry is complicated, with a low success rate among foreign firms to date.

Pexton said that developmental delays for some companies stemmed from technological challenges, capital shortfalls and the nature of the gas market. For other firms, unfamiliarity with Chinese industry regulations was another major hindrance.

Despite these challenges, Pexton believes that CBM will be an increasingly important industry in China in the future.

"In 2010, you will see a lot of market development, partly due to the amount of pressure put on state-owned companies, including CUCBM and PetroChina, to recover resources, and partly because an increasing number of foreign companies, including Fortune Oil, will have CBM blocks ready to commence commercial operations," he said.

Very informative - thank you. Still sounds like it's jam tomorrow though and in such a high hazard industry, together with the oil side of the business, plenty of scope for things to wrong big time. That's without factoring in the political uncertainties of dealing in China and the possible bubble in their eonomy.
Ah well - I live in hope...

Extended auction + 7% has a little birdie been talking at fortune?hope sobut no news?

Energy group Arrow Energy has received a takeover offer of about $3.3 billion from the Anglo-Dutch oil group Royal Dutch Shell.. Mon Mar 2010 11:03 (7 hours, 45 minutes ago)

THE OFFER DOESNT SEEM TO INCLUDE INTERNATIONAL ASSETS.THESE MAY BE SOLD AT A LATER DATE?

The Malaysian Insider
Wednesday March 17 2010.

China in great leap forward for gas

BEIJING, March 17 Chinas burgeoning gas demand has been a key driver for a swathe of projects to supply the clean-burning fuel but the speed at which it will shift away from coal and oil could still catch markets by surprise.

From Guangzhous small eateries to porcelain mills on the citys outskirts, from its bus fleet to its shiny high-rise apartments in Beijing, gas is taking over from dirtier alternatives as the fuel of choice to cook, heat and transport.

Aluminium smelters in Inner Mongolia are shifting to gas from crude, and power generators in east China have dumped oil for gas.

After a tripling in consumption in the past decade, gas is set for a similar jump by 2020 to make up nearly 10 per cent of total energy use, from the present 4 per cent.

State energy giant CNPC earlier this year revised up its China gas demand forecast in 2020 by half to 300 billion cubic metres (bcm), equivalent to three quarters of the amount of oil it now consumes.

Its the double accelerator thats behind our revision: Chinas urbanisation and industrialisation, as well as the national policy to strive for sustainable growth, said Jiang Xuefeng, a senior researcher of CNPC.

Gas offers the worlds No.3 economy the most realistic way to achieve its emission targets a 40-45 per cent cut in carbon dioxide per dollar of national income by 2020 from the 2005 level compared to the more costly and time-consuming investments in alternative energy like hydro and nuclear.

The boost in gas will cheer firms like PetroChina, CNPCs listed unit that controls over 60 per cent of Chinas gas output, and CNOOC Ltd, which has its largest gas deposit to tap in the South China Sea operated by Canadas Husky.

It will force traders like Pan Liangwei to look further beyond his coal business, after having to quit fuel oil trading as his clients in Guangdong power plants, porcelain mills moved to cheaper coal after oils rally in 2008, resulting in dwindling demand for imported fuel oil.

Once there are pipelines to pipe gas over, and the price is reasonable, then all will shift to gas, said Pan from Guangdong, Chinas manufacturing hub, where local authorities have embarked on a US$7-billion (Rm23.11 billion) project to link 21 cities with gas lines.

While oil dealers said power plants which used to take a third of Chinas imported fuel oil had all but vanished from the oil import scene, longer term, gas will mostly hit coal.

Coal, which last year supplied 69 per cent of Chinas total energy use, will probably drop 10 percentage points in the following decade, while the share of oil will hold at 19 per cent, sustaining Chinas support for global oil demand, analysts said.

SHORTAGE

While China is widely expected to revamp its gas prices long kept below market levels to support fertilizer makers it is the recurring shortage that has prompted industry players to raise their gas forecasts.

In December, central and southern China were rationing gas to taxis and factories as a cold spell led to a surge in heating demand in a country that also is severely short of gas storage.

There remains enormous pent-up demand for gas across China...current demand is artificially limited by access to supply, as highlighted by the gas shortage this winter, Bernstein Research wrote in its January note.

Similar to CNPC, Bernstein upped its China gas demand forecast by 55 per cent from its previous estimates, pegging 2015 demand at 200bcm and 280bcm in 2020, doubling and tripling, respectively, the 2009 level.

Once resource is secured and infrastructure in place, the huge demand potential will be released, said CNPCs Jiang.

A number of major gas pipelines will be laid over the next three years, including Sichuan-Shanghai, Ordos-Beijing, the second West-East line, doubling the networks current capacity.

PetroChina and rival Sinopec Corp are developing new, big fields such as Dina and Tazhong in northwest Xinjiang; Sulige in Inner Mongolia; Longgang and Puguang in southwest Sichuan, while fast-tracking explorations by adding each year 200 bcm of incremental recoverable reserve, said Jiang.

The start of long-term gas deliveres from Qatar, Indonesia and Malaysia will double imports of liquefied natural gas by 2011. These will surge even further in coming years, after firms like Qatargas, Shell, BP and Exxon Mobil sealed supply pacts with Chinese firms worth over US$100 billion.

Piped gas from Turkmenistan and Myanmar will together amount to 20 per cent of Chinas demand, or 40bcm, by 2015.

NEW FLATS

Much as Chinas blistering car sales spur gasoline demand, its frenzied property boom bolsters demand for gas.

China added nearly 2 million square metres of new apartment space every day in 2009, 20 per cent more than 2008, official data showed, and most would have gas links.

The residential use has often been under-estimated, said Yan Kefeng of Cambridge Energy Research Associates (CERA), adding that the potential is huge to replace the more pricey and dirty city gas gas made from coal or heavy oil that millions of houses are connected to.

Industries will be the next key driver, as China, the worlds No.1 aluminium consumer and producer, designed its new smelters in the last few few years to burn gas instead of crude in making carbon anodes half a tonne of which makes every tonne of aluminium.

Many of the new power plants in Guangdong are designed to take gas. Problem is there is not enough gas, said the former fuel oil dealer Pan. Reuters

ARROW ENERGY ACCEPTS OFFER FROM SHELL/PETRO CHINA

Has to be good news CWMAM>

This has enabled another great partnership for Fortunemust bring some increased value to the company?

IT WOULD CERTAINLY SEEM SO,WOULD LIKE TO TO HEAR SOME NEWS FROM FTO.

CBM. UPDATE,SOUNDS OK,WILL IT MOVE S.P. ?

SP GOING IN THE RIGHT DIRECTION .

MORE GOOD NEWS SP MOVING UP.

We have had a very good recent stream of newsthe latest positive statement is another indication that Fortune are going placesno share dilutionand increased future revenues a certaintythe already crap SP will not imo significantly improve till results published give MMs no room for manoeuvres

16:20 and the mms have this marked down nowafter being 3% or more up all daythey know it aint gonna end down on the dayif it doesI will eat my own bo**ockswhy keep playing these stupid games?

As expected I can look forward to my dinner4.4% up.

Looks like an increase in value should be the order of the day....8p or even 9p possibly soon.