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.

SP is reluctant to go below 9p for now, even with indexes not moving forward..
Positive RNS alright...:)

Still hovering

ANNOUNCEMENT CHINA GAS
The Company wishes to refer to its announcements dated 24 December 2010, 4 January 2011, 31
January 2011 and 14 November 2011 (the “Announcements”) regarding the status of Mr. Liu
Ming Hui, a former managing and executive director of the Company, and Mr. Huang Yong, a
former executive president of the Company. Unless the context requires otherwise, terms used in
this announcement shall have the same meanings as defined in the Announcements.
As mentioned in the Announcements, Mr. Liu and Mr. Huang were under investigation by the
Shenzhen PSB for suspected “embezzlement of the assets of an organisation in which they have
duties”.
The Company has been informed that the People’s Procuratorate of Futian District, Shenzhen
issued determination letters of non-prosecution on 23 July 2012 stating that as the facts relating
to the alleged embezzlement of the assets of the Company or its subsidiaries in relation to a
project in Xiaogan City were unclear, evidence was insufficient and the conditions to prosecution
have not been met, it has decided not to prosecute either Mr. Liu or Mr. Huang in relation to
such alleged offence.
By order of the Board of
CHINA GAS HOLDINGS LIMITED
LEUNG Wing Cheong, Eric
Joint Managing Director
Hong Kong, 25 July 2012

Oil & Gas News


.

Dart Energy Limited announces Liulin compressed natural gas facility completed

Thursday, Jul 26, 2012

International gas and energy group Dart Energy Limited (ASX: DTE, “Dart”), with operating partner Fortune Oil PLC (Fortune Oil), have been advised that construction of the independently owned compressed natural gas (CNG) facility at Liulin, China has been completed and is now awaiting final approval. This station will compress natural gas collected from the Liulin Coal Bed Methane (CBM, or CSG) block for onward distribution, and provides a means of monetising early pilot gas production at Liulin.

Additionally, approval has been received from the Ministry of Commerce (MOFCOM) for the extension of the exploration period of the Production Sharing Contract for the Liulin CBM block for a further two years to 29 March 2014. This allows time for pilot gas appraisal and commercialisation ahead of the full Overall Development Plan approval.

Dart Energy International CEO John McGoldrick said: “Another key project in our portfolio is moving steadily towards first revenue and cashflow. Our clear focus is on a small number of projects that all have the potential to deliver production, revenue and cash-flow over the next 12 months.”

“We welcome the extension of the exploration period and the continuing support of China United Coal Bed Methane (CUCBM) and MOFCOM for our pilot development program which will enable us to complete the assessment of all the seams and the remaining areas of the block. We continue to see commercial gas flows from our horizontal wells at Liulin, and we remain committed to the development of Liulin and to achieving commercial production.”

Source: Dart Energy

Found this on Fox business. A good summary of the story so far

China Gas Co-Founder Cleared of Embezzlement Allegations
Published July 26, 2012

The co-founder and major shareholder of China Gas Holdings Ltd. (0384.HK)--Liu Minghui--has been formally cleared of embezzlement allegations by Chinese authorities more than a year after his arrest, which sparked a steep slide in the company's share price and triggered a hostile takeover bid.

China Gas, which controls gas pipelines that serve more than six million customers in China, said late Wednesday that Mr. Liu and former executive president, Huang Yong, received written "no-prosecution letters" from authorities in the southern city of Shenzhen, where the Hong Kong-listed company is based.

In December 2010, Messrs Liu and Huang were escorted from the company's headquarters by public security officials. Mr. Liu, who was managing director at the time of his arrest, spent close to a year in a Chinese prison on suspicion of embezzlement, before being released on bail. It wasn't clear if Mr. Huang was detained.

The arrests of top officials at the nation's third biggest gas distributor by sales sparked major corporate governance concerns for the company, with its shares later plummeting nearly 50% amid the allegations against Mr. Liu. Mr. Liu, who resigned from the director's post at China Gas after his arrest, couldn't be reached for comment.

The share price weakness created an opening for state-owned oil giant China Petroleum & Chemical Corp. (0386.HK), better known as Sinopec, to make a preliminary US$2.15 billion hostile bid last December in which it would control 45% of China Gas, while its partner ENN Energy Holdings Ltd. (2688.HK), China's fourth-biggest natural-gas supplier in terms of revenue, would take 55%.

The offer price, at HK$3.50 per share, was 25% above China Gas's traded price at the time but had no premium to its average valuation for the last few years. China Gas rejected the deal, saying at the time it "failed to reflect fundamental value." The company's management and shareholders have resisted what they said is too low an offer from Sinopec and ENN.

Despite his arrest, Mr. Liu had been trying to stop the takeover by buying up shares in his former company. Joining Mr. Liu's efforts was London-listed energy company Fortune Oil PLC, which has been purchasing China Gas stock since the deal was proposed publicly and now owns around 16% of the company with Mr. Liu.

Meanwhile, Beijing Enterprises Group Co., which owns a natural-gas distributor in China's capital, has also been amassing its stake in China Gas in recent months, reaching 20.3% earlier this month.

Their buying has helped push China Gas's share price to over HK$4.00, well above the HK$3.50 price offered by Sinopec and ENN. Furthermore, the hostile offer still hasn't even become official, as China's Ministry of Commerce, which normally rules within two months on whether a deal would violate China's antimonopoly laws, has yet to make a ruling.

A deal would need the approval of more than 50% of China Gas's shareholders. Fortune Oil and Mr. Liu have said they would vote against the deal.

"Unless the two parties raise the offer price, there's no way that this deal will go through," said an analyst at a pan-Asian brokerage, who declined to be named. The analyst said China Gas's announcement on Mr. Liu came as no surprise to the market.

"The fact that Liu was able to work together with Fortune Oil to defend against the hostile bid was pretty clear evidence that he was going to be okay," the analyst said

All decent news going forward for JV set up with Liu.
But sp closing below 9p on minimum volume is bad signal.
Long Summer a head looks like.....:)

China Gas share price increases again.

CGH is close to chart breakout. $4.12 now, highest ever close was $4.86.

6th August is next deadline date. Commerce Ministry normally gives decision within 2 months....this is now into 7th month and still waiting.
Now Liu is cleared of embezzlement, I expect they may make an announcement next week in favour of the bid proceeding.

Liu Minghui has been reinstated as director of CGHs after resigning last year..
Think he wants his company back...:)

China Gas, which controls gas pipelines that serve more than six million customers in China, said Mr. Liu will rejoin the company as a non executive director, effective Aug. 17.

CGH sp moving up again!

Great news for CGH... It is 5% higher so far today, 4.22, closer to its record price, 4.86.

FTO is its major shareholder....

FTO is A major shareholder...BEG is biggest shareholder now...:)

china gas end game.

http://www.reuters.com/article/2012/08/03/us-chinagas-sinopec-idUSBRE8720BM20120803

From VSA...

China Gas Holdings (384 HK) announced yesterday that company co-founder Liu Minghui will rejoin the firm as a director, days after he was formally cleared of embezzlement allegations in China. This move will be seen as very positive for the consortium created between Liu Minghui and Fortune Oil (FTO LN)*, which between them have acquired just under 18% of China Gas Holdings (CGH). Since ENN launched its bid for CGH in January, VSA has consistently said that this is highly unlikely to be successful, and with CGH currently trading at HK$4.10, against an offer price of HK$3.50, we continue to believe that this is almost certainly the case.

What is perhaps more interesting for Fortune Oil shareholders, is that with Liu Minghui back on the Board of CGH, once the bid from ENN has fallen away, we would expect close cooperation between CGH and Fortune Oil, and the possible creation of a “major gas distribution company” in Mainland China. We would expect this to create considerable value to Fortune Oil and so continue to be buyers of the stock.

CGH closing sp 4.27
topped up with FTO last few days.
CGH has agm on 16" Aug?
lots of interesting news.

Found this on another site.


Luilin CNG plant






























Found this article with an image of the CNG plant. Bigger operation than I thought !

http://www.hydrocarbons-technology.com/news/newsdart-enery-completes-plant

Aug 6 (Reuters) - Chinese oil giant Sinopec Corp and gas distributor ENN Energy Holdings are extending their $2.2 billion offer for China Gas Holdings again, this time by a month, as they seek regulatory approvals to proceed with Hong Kong's first unsolicited takeover bid.

Sinopec and ENN are finding the odds increasingly stacked against them as regulatory hurdles remain uncrossed eight months after their offer and key shareholders of the target company place new obstacles in their way, sources with direct knowledge of the matter have told Reuters.

In a filing with the Hong Kong stock exchange, the Sinopec/ENN consortium said on Monday they have decided to extend the offer until September 6 p e nding approvals from various Chinese authorities, including the country's commerce ministry, which recently extended its anti-monopoly review for the offer to around the end of August.

Buying China Gas would give Sinopec and ENN access to the country's largest portfolio of natural gas distribution projects. But analysts say the consortium will have to win regulatory approvals and raise its offer to win the backing of China Gas shareholders.

The consortium had already extended the offer period three times over eight months in the absence of regulatory approval and permission from China Gas's board to conduct due diligence on the company that has piped-gas operations in 160 cities and 20,000 employees.

The consortium has now set September 6 as the "long stop date", meaning if by that date pre-conditions set out in their indicative proposals, including winning the necessary regulatory approval and conducting due diligence on China Gas, are not met, the group could drop the offer or reset the long-stop date.

In December last year, Sinopec and ENN made a conditional cash offer of HK$3.50 per share for China Gas, making it the first unsolicited offer in Hong Kong.

China Gas rejected the offer, saying it failed to reflect the true value of the company, and its share price has since traded consistently above the offer price as some of its key shareholders jostled to raise their stakes in the company.

Shares in China Gas ended little changed at HK$4.26 on Monday, a 22 percent premium to the offer price.

About 51 percent of China Gas is held by state-controlled utility Beijing Enterprises Group (BJEG) and two other investors, one of them a venture set up by London-listed Fortune Oil and former managing director of China Gas Liu Minhui, and the other a unit of South Korea's SK Group . (Editing by Greg Mahlich)

This is like a dead body. So much activities, all positive, but no reaction !!!
When is it going to end? I am too old to wait much more.