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 : 3078S
Fortune Oil PLC
08 September 2010

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8 September 2010

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

First Gas Sales Agreement at Liulin Block

Highlights

� First Gas Sales Agreement ("GSA") at Liulin Block amounting to annual gross
sales of RMB 52.1 million (GBP5.01 million).

� The entire coal bed methane ("CBM") production (as outlined in the GSA)
from the Liulin Block will be resold at an attractive margin.

� Hunger for natural gas in Shanxi province is outpacing supply for each
client segment (e.g. Transportation, Residential and Commercial, etc).

� Validates decision to partner with China United Coal Bed Methane
Corporation ("CUCBM") and China United Shanxi CBM Company Limited ("Shanxi
CBM").

Fortune Oil is pleased to announce the signing of the first GSA for its Liulin
Block CBM. Fortune Oil, through its 85% subsidiary Fortune Gas Investment
Holdings Ltd, holds 65% of Fortune Liulin Gas Co Ltd. ("FLG"), which itself has
a 50% revenue sharing interest in the Liulin Block, the other 50% interest being
held by CUCBM. The remaining 35% interest in FLG is owned by Dart Energy
Limited.

The GSA signed between CUCBM, as the Chinese gas rights owner, and Shanxi CBM is
a 15-year agreement requiring Shanxi CBM to purchase 100,000 cubic meters per
day of CBM gas on a take-or-pay basis. The GSA applies to CBM gas sales
commencing 1 June 2011, with take-or-pay obligations commencing 1 June 2012. The
price is RMB 1.58 per cubic meter including recently enacted Chinese government
subsidies (subject to annual escalation and review) which equates to
US$6.59/gigajoule. A full years' supply, assuming no escalation, at the minimum
volume level would equate to gross sales of RMB 52.1 million (GBP5.01 million).

The gas produced from the Liulin block will be purchased and then resold to
market, at a significant premium, by Shanxi CBM. Fortune Oil has a 50% equity
interest in Shanxi CBM held through two subsidiaries of Fortune Gas Investment
Holdings Ltd, Fortune Gas Investment Co. Ltd and Beijing Fu Hua Green Energy
Technical Co. Ltd. Shanxi CBM is mandated by the Shanxi central and provincial
governments to market CBM for local (i.e. Shanxi province) consumption.

The CBM from the Liulin Block will be utilised in a variety of natural gas
markets across Shanxi province. The demand in Shanxi province for clean burning
and low carbon natural gas continues to expand rapidly in all of the major
energy sectors including power generation, as a transportation fuel, and for
residential use.

The Liulin Block covers 198km2 and is located 35 km from Luliang and 500 km
south-west of Beijing within the south-east Ordos Basin in Shanxi Province. The
project currently has certified 3P reserves of 89 petajoules and is designated a
State Special Pilot Project enabling the acceleration of the exploration and
development programme. The development plan for the Liulin Block consists of 176
production wells targeting three coal seams with high gas content and
saturations.

Mr. Qian Benyuan, Chairman of Fortune Oil, commented:

"We are extremely pleased to have brought the Liulin CBM project to initial
commercial operations. This is a significant milestone towards monetizing the
full value of Liulin CBM for our shareholders. Through this GSA we now have
achieved end-to-end gas from production to consumption - fully integrating our
CBM business. We look forward to building additional CBM volume to meet the
increasing demand of "clean energy" in Shanxi province. The positive long term
relationships which we have forged with our partners CUCBM and Shanxi CBM has
made this achievement possible."

Could be a move up today!!

Good start to the week

At long last a bit of a breakout.....been waiting for ages for this....

8.25 next pause,before onward and upward.

Onward&upward !!

..but why? Not that I'm complaining :-)

In my opinion the sp has not reacted to the company performance/news,this correction has been long overdue.

Will this affect us?

27 September 2010
Dart Energy Limited (ASX Code DTE) Request for Trading Halt
In accordance with Listing Rule 17.1 Dart Energy Limited requests ASX to grant a trading halt in relation to its securities. In accordance with Listing Rule 17.1 the company states the following:

1. Reason for the trading halt

Pending release of an announcement to the market concerning a material acquisition by the company.

2. Length of trading halt

Until 10am Wednesday 29 September or until the announcement is made.

3. The event that the company expects to happen that will end the trading halt

The announcement by the company.
The company is not aware of any reason why the trading halt should not be granted or of any other information necessary to inform the market about the trading halt.
Yours faithfully
Paul Marshall
Company Secretary
--------------------------------------
Fortune Oil plc Announces Gas Sales Agreement at Liulin Block
Wednesday, 8 Sep 2010 02:00am EDT
Fortune Oil plc announced the signing of the first Gas Sales Agreement (GSA) for its Liulin Block CBM. Fortune Oil, through its 85% subsidiary Fortune Gas Investment Holdings Ltd, holds 65% of Fortune Liulin Gas Co Ltd. (FLG), which itself has a 50% revenue sharing interest in the Liulin Block, other 50% interest being held by China United Coal Bed Methane Corporation (CUCBM). The remaining 35% interest in FLG is owned by Dart Energy Limited. The GSA signed between CUCBM, as the Chinese gas rights owner, and Shanxi CBM is a 15 year agreement requiring Shanxi CBM to purchase 100,000 cubic meters per day of CBM gas on a take-or-pay basis. The GSA applies to CBM gas sales commencing June 01, 2011, with take-or-pay obligations commencing June 01, 2012. The price is RMB 1.58 per cubic meter including recently enacted Chinese government subsidies which equates to USD6.59/gigajoule. A full years' supply, assuming no escalation, at the minimum volume level would equate to gross sales of RMB 52.1 million (GBP5.01 million). The gas produced from the Liulin block will be purchased and then resold to market, at a significant premium, by Shanxi CBM. Fortune Oil has a 50% equity interest in Shanxi CBM held through two subsidiaries of Fortune Gas Investment Holdings Ltd, Fortune Gas Investment Co. Ltd and Beijing Fu Hua Green Energy Technical Co. Ltd

Well spotted - but isn't the Dart aquisition likely to be unrelated to FTO? Otherwise both companies would be suspended and a formal announcement of a bid made by both also?

UPDATE: Dart Agrees To Buy Apollo; Deal Values Target At A$150 Million

Dart Energy Ltd. (DTE.AU) said Tuesday that it could be selling gas to the New South Wales state domestic power market by 2012 after it unveiled a friendly share-based takeover offer for Apollo Gas Ltd. (AZO.AU) that gives the target an enterprise value of about A$145.5 million.

The offer values Apollo's shares on issue at A$71.4 million but an Apollo spokeswoman said Apollo also has 109.6 million shares subject to escrow and cash on hand of A$12.0 million.

The acquisition will give Dart its first material interest in an Australian asset, adding to its undeveloped coal seam gas acreage in China, India, Vietnam and Indonesia, and follows the company's spin off from Arrow Energy earlier this year.

Australia's large coal endowment has contributed to its status as the world's biggest carbon emitter per head of population but increasing public concern about climate change is strengthening the investment case for natural gas.

Dart, which already owns 21% of Apollo, is offering three of its shares for every four Apollo shares, or about 79 Australian cents per Apollo share, based on their most recent value before the deal was announced.

Apollo directors and major shareholders representing 54% of the company's shares on issue intend to accept the offer, Dart said. ...............
--------------------------------
Cancel the Ferrarilol

Heavy volume yesterday,very narrow spreads at times,lots of buys,i bought some more,something about to happen?.

CWMAMsince the very good half year report at the end of August and the First Gas Sales Agreement at Liulin Block myself.. family and friends have increased our holdingsnot one of our buys has been reported as a buyeveryone a sellstrange?do you think the mms are trying to persuade investors that there are a large amount of sellers toosurely not?lol

Hi Lol
I have a very large holding going back to the 2p days.The mm are influenced by making money,i have bought and sold large chunks when the sp has spiked and then fallen[not always getting it right] some trades not reported at all.
In my opinion fto will benfit substantially as the yuan is allowed to float more freely.

TV NEWS IN CHINA:Petro&Diesel prices have been increased as from today:3%.

Interesting analyst report involving FTO page 20...section titled ways to play the sector .
http://www.greendragongas.com/doc/research_report_100518.pdf

Thanks tabasco. Looks worth reading the whole thing but no time just now. FTO still a jam tomorrow stock but I've a few years left before I need the SIPP.

Read the whole report now and while it is bullish on the coal bed methane business there are a lot of riders. Also this phrase in particular "As a result it seems likely that the
independents will have to dilute their equity, raise capital through rights issues or develop at a much slower pace that currently envisioned." in respect of future finance required to bring cbm to market.

China National Radio:Beijing will increase the retail price of Natural Gas by 11%.

Just to cheer a few up on here.

This stock does seem to struggle in maintaining any sp momentum. I have been told many times that fto is a little gem on the verge of giving investors real valueI was once again given positive advise last weekThe Daily Mail gave a very good analysis in September resulting in the sp closing at over 9p but declining slowly to once again the 7p levelthere has been a constant flow of good/great news all of this year with little effect on the price..BUT With an interim management statement released tomorrow and more than one whisper going roundI believe this to be the start of a proper companybe sure to be up at seven tomorrow!

Another guy from another thread must have heard something similar:-

I have told the directors, via Archie Pelham, that their attempts at increasing shareholder value, mentioned in the last 2 rns, has been dismal.

The response was, 'watch this space' ! So my guess is either an offer or a HK listing, thats why I am back in, dyor.

Good luck all