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.

IC write up, and its under the "free content"

http://www.investorschronicle.co.uk/content/free/2006/News/news_20060421_18.html

21 April 2006
Fortune Oil makes its bed in china

Ahead of results due out next week, Fortune Oil has bought a 60 per cent stake in a coal-bed methane project in China in return for funding $2.5m (1.4m)-worth of appraisal studies and exploration drilling. The Liulin licence covers 200 sq km of coal fields estimated to contain 800bn cubic feet of gas. The shares rose 0.65p to 6.7p on the news.

Fortune's February trading statement indicated that winter trading exceeded expectations. So, ahead of these results, the shares look good value.

On the move again this morning - loads of buys again.
Looks like being another busy day

Back down we go :-(

queen1
Cheer up I got on board today so it should do well also on GOO and DNX.

Welcome on board driver. Let's hope that forward momentum is maintained next week and we push for 10p.

Well this has dropped to 7.5p to buy
Will this fall further?

Results due by end of week - I would expect a large bounce back up

It's actually typical of the share. I've been in since 1.5p so am not complaining but the last two years has seen a lot of promise in the SP followed by drifts southwards even on positive news. It would be nice to think that this time it will be different but only time will tell.

From ADVFN board
morfina - 25 Apr'06 - 12:53 - 591 of 594


I have spoken to FTO in London. They told me that the preliminary results will be out on Thurday. They have not given a time but probably in the morning.

Morf

deleted - same message as above

Fairly big shake there.

HAVING A GOOD DAY,BOUGHT MORE THIS MORNING

LOOKING FORWARD TO THE MORNING I THINK THE RESULTS WILL BE OUT SHOULD BE INTERESTING.

http://www.investegate.co.uk/Article.aspx?id=200604270700330679C

KEY POINTS

* Turnover increased by 21 per cent to #143.1 million (2004: #118.1
million).

* Retained profit (after exceptionals) increased to #2.8 million (2004: #2.6
million).

* Excluding the impact of an exceptional credit in 2004 and an exceptional
debit in 2005, underlying retained profit increased by 87 per cent from #1.8
million to #3.4 million.

* Earnings per share on retained profit of 0.16 pence (2004: 0.17 pence).

* Bluesky aviation refuelling continues to perform strongly, increasing
sales volume by 20 per cent and net profit by 68 per cent.

* Installed replacement SPM buoy, increasing the efficiency of crude oil
delivery to the Maoming refinery.

* Total natural gas sales volume increased by 42 per cent to 34 million
cubic metres (2004: 24 million cubic metres). Fortune Oil now operates 468
km of gas distribution pipelines with 71,600 contracted customers. New
developments include the supply of gas to Tianjin suburbs.

* Post 2005 investment in a Coal Bed Methane block at Liulin, Shanxi
Province.



Outlook

Last year the Company's performance improved in spite of various supply
disruptions. In 2006 we are investing for future growth, particularly in
terminals and CBM projects. Security of energy supply is becoming increasingly
important for China as it endeavours to sustain economic growth. Since China is a net importer of energy, domestic prices for both gas and transportation fuels will eventually have to rise towards international levels. We believe that the private sector will be encouraged to expand, albeit with appropriate regulation.
With our developing portfolio of investments and unique market position, these
developments will be positive for the Company and we remain confident of
sustained growth.

Future Development

We remain very optimistic concerning the prospects of our natural gas business,
which we regard as our engine of growth. However in 2005 we appreciated the
need to ensure long-term security of supply and for this reason we have been
more cautious compared to some other gas companies in building our portfolio,
preferring to ensure sustainability. Our entry into coal bed methane
development is aimed at both creating an integrated gas business with more
reliable supply and tapping into the vast potential of CBM in China.

The Company continues to exploit windows of opportunity as they open in the
China oil and gas and infrastructure markets. The Maoming SPM and West Zhuhai
terminal are unique investments for a foreign company in China and we will
continue to build upon these positions. Bluesky continues to grow strongly,
particularly from the rapid growth of the new Guangzhou airport. Given the
surge in demand for transportation and terminals, particularly in north and east China, the Company continues to assess opportunities for new port projects in these regions. We are proud of our reputation and experience as one of the earliest foreign companies to invest in terminals in China and we plan to profit further from these strengths.

Results look fine to me, and a possible future divi, temporary dip IMO time to top up.

The market differs from your view of FTO, remember buy on rumour, sell on results

TheMaster
That's why it's a buying opportunity punters have sold on results.

Turnover increased by 21 per cent
Natural gas sales volume increased by 42 per cent
Underlying retained profit increased by 87 per cent

Results look pretty good to me. Typical market reaction today but I bet not a single long-term holder sold today.

Maybe it is sell on the news...

i sold my 200 tho held for a long time had a little punt on pcm with some of the profit........i think fto will stagnate again now for a while as punters will look for quicker returns as this has become a long term punt now as results were good but not as good as expected by some quarters .....i think the results could of done with some forward spin as well the divi would def push price up in the future

IC article today, in basic says FTO is Good Value at 7p, based on a progress so far and a play on the rising Chinese Yuan.