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.

From another board:CGH divi HK$ 3.92 cents per share.
Re. your CGH news in last post - should be the beginning of further significant change

The last official notification we had was stated as ‘As a result of the above purchases, the combined overall holding of the Joint Venture and of Fortune Max in CGH is 627,446,000 shares, representing 14.32 per cent.of CGH's issued share capital’
So 627,446,000 shares * 3.92 HK cents = 24,595,883.2 HK dollars,
which is about 2,020,440 GBP at current rates.
On top of that we have the capital appreciation which especially for FTO is even more considerable (I believe all FTO's purchases were under 4 HK dollars - most of them way under).

I do think Mr Daniel Chiu and his Fortune Max (whose shares FTO are committed to rebuy at cost) will have done well with his beneficial interest (if I understand it right) – see last RNS below:

The following is the last RNS on the topic

RNS Number : 2654J
Fortune Oil PLC
03 August 2012

FORTUNE OIL PLC
("Fortune Oil" or the "Company")
Strategic investment: Purchase of additional China Gas shares
Fortune Oil (LSE: FTO.L) focuses on oil, natural gas and resource supply operations and investments, primarily in China. Fortune Oil is listed on the Main Market of the London Stock Exchange.
Fortune Oil confirms that Fortune Max Holdings Limited ("Fortune Max") has purchased 834,000 additional shares in China Gas Holdings Ltd ("CGH"; 0384.HK) since the announcement made on 6 July 2012.
Fortune Max is a private company controlled and beneficially owned by Mr Daniel Chiu, a director and substantial shareholder in Fortune Oil. Fortune Max is therefore deemed for the purposes of the Hong Kong Code on Takeovers and Mergers ("the Code") to be an associate of China Gas Group Limited ('CGG"), the Joint Venture between Fortune Oil and Mr LIU Minghui.
As a result of the above purchases, the combined overall holding of the Joint Venture and of Fortune Max in CGH is 627,446,000 shares, representing 14.32 per cent.of CGH's issued share capital.
:

Nice big buy there for over 23k worth !

I read that.....its sort of misleading.
Its just below 4 cent a share which yields about 1.2 percent.
Some think CGHs yield over 5 percent and more...but they dont...but not sure how the income will be accounted for on the payment.
Think it will show up in the full year figures...

http://energychinaforum.com/news/65990.shtml
China’s CNOOC to Trial Run Ningbo LNG Terminal in Late August

Apart from the divi from CGH ,the joint venture are sitting on a hadsome capital gain
at present,most shares in CGH were purchased sub HK$ 4.

At first I thought a quick profit was what the investment was all about...as did most analysts at the time.
But the strategic investment approach seems the much better option...more long term....which markets haven't the ability to assess accurately anymore.

19/1/2012 FTO purchased CGH shares at HK$3.49 !this is the lowest price paid this year, i can find,CGH closed at HK$ 4.24 today.

China Gas Reinstates Liu as Head After Police Case Dropped.

CGH reinstates Liu Ming Hui as Managing Director according to a statement to HONG KONG stock exchange .18/8/2012.
Very good news for FTO.

Wow, That's great news, CGH is closer to FTO than every before.

FTO played a very risky game, but won it very nicely.

Results due Thursday 23rd August..
Needs to be a very good set of results to help here.
Still to reliant on Bluesky Aviation for profits and they may have suffered with the slow down in China air travel.
It needs more profit streams.

Once again good steady progress.

eps dropped back...but overall,all in the right direction.

eps dropped back...but overall,all in the right direction.

Controversy at CGH meeting.

http://www.energychinaforum.com/news/66290.shtml

ticking up nicely as expected after digestion of possitive half yearlys

9.60p is a big resistance and has been since the fall after the full year announcement last April.....
Not enough follow through on the higher offer price over 9.50p...
We shall see today...

One should leave it or believe it.
I view this a company of future, the same as DGO when it was 11p and I everyone was in disbelief. I added at 11p but sold at 40p just before it issued shares at 38p. Anyway it rose a week after the issue to 90p and continued to 200-600p range.

In five years time, you will not believe FTO was less than 10p ever. I believe in it.

I believe it , bought again 20,000 @ 9.55.

『 China Daily: Natural gas prices may rise 80% to bolster shale 』 [2012-8-24]

Natural gas prices in China may rise 80 percent from current levels as the government stimulates domestic production from shale to reduce its energy imports, according to Bank of America Merrill Lynch.

Gas may rise to as much as 2.6 yuan per cubic meter, equivalent to $11.4 per million British thermal units, by 2016 as the government revises its pricing formula for the fuel, Bank of America said in a report e-mailed on Tuesday(Edited by EnergyChinaForum.com. For more information, please email to: info@energychinaforum.com)

VSA Capital
OIL & GAS
Fortune Oil (FTO LN)* has released a very good set of interim numbers, especially considering the current slowdown of growth in China. This has been achieved by the very rapid growth China is seeing in domestic air travel (which benefits Bluesky) and the growth of gas in the country. Both of these factors are likely to continue for a long time which puts Fortune Oil in a very strong position.
However, the bid battle for China Gas Holdings (CGH) is clearly the main driver to both the share price and the future direction of the company. In our opinion, there is no question that ENN will not now be successful but we would need to see a formal withdrawal of the bid - which may occur in early September - before we can expect to get a firmer indication of how Fortune Oil and CGH will combine their strengths. What we do know is that it is Fortune Oil’s intention to become a leading player in the Chinese natural gas supply market and, if it is successful, it will create a very valuable company and see significant share price performance.
Analyst: Andrew Monk