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.

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

All positive news S.P. should reflect this as we get updates,next exiting news could be from CGH.

ENN ENERGY (02688.HK)'s chief financial officer Wilson Cheng said he cannot comment on the possible acquisition of CHINA GAS HOLD (00384.HK) at present but the company would update the development of the event next Thursday (6 September). In the first half of 2012, ENN ENERGY's provision and relevant interest charges related to the acquisition totaled around HK$90 million.

Tomorrow is tomorrow, I hope it will come this time.

CGH held above $4 despite huge pressure by the bidders.. They have to buy back if their bid at $3.5 is rejected.

ahoj.
I dont understand your last post. Could you explain please?
Who has to buy back?

The situation with the bid should be clarified by the end of the month.

Not likely.
Another extension until mid October..
Still awaiting approval...:)

ahoj,

I did not understandyour comment " they have to buy back if their bid at $ 3.5 is rejected " per your 734 message.

Like Ruthbaby, could you explain please. Who has to buy back?

Predateur

I think Enn and Sinopec would like to get out of this without losing face,a ruling against the takeover would allow them to do so.
I cant see how they could purchase shares held by parties opposed to the bid anyway.
CGH sp hk$ 4.18 at close.

Seems like we are coming to an end now.....
Chinese companies Sinopec and ENN Energy have set a deadline for their joint hostile acquisition bid for gas distributor China Gas Holdings, signaling the end of a process stretching back to an initial offer last December is nearing.

In a filing to the Hong Kong stock exchange on Wednesday night, the duo said they have extended their offer to within seven days of October 15, which would put the latest date at October 22.
Link... http://energychinaforum.com/news/66592.shtml

CGH closed @ 4.24 hkd heavy trading sp up 1.4%, seems to have reacted well to the news,exiting times for FTO.

Only £7000 shares traded today, but the spread is widening and on the up.

Spread widening?
You think this is a good thing?
Do you think stepping on a land mine is a good thing?

Fortune Oil plc and its partners at the Liulin coalbed methane (CBM) project in Shanxi Province are preparing to submit an overall development plan (ODP) in the next few months, with a view to initiating commercial gas sales by early 2013, Fortune’s business development director Michael Jones has told Interfax.

“We’ve submitted a summary ODP to the National Development and Reform Commission (NDRC) through our Chinese partner China United CBM Corp. (CUCBM), and that sets the main context of what the full approval document will have. We’re in good shape to submit [the full ODP] – probably by end of year,” Jones said.

London Stock Exchange-listed Fortune is partnered with CUCBM on the project through its subsidiary Fortune Liulin Gas (FLG), as well as with Australian CBM developer Dart Energy Ltd., which holds a 50 percent stake in FLG after farming into the Liulin block in 2009.

Liulin is part of a state pilot project for CBM development that draws preferential policies that will accelerate development in the block, according to Fortune.

“We’re fortunate to be part of one of the state pilot projects, and under the mandate that we have along with our Chinese partner,” Jones said.

Total production at Liulin presently stands at 27 thousand cubic meters per day (Mcm/d), but FLG expects to ramp up production to meet the requirements of the existing gas sales agreement (GSA) of 100 Mcm/d.

“We’re getting some good numbers now as we dewater the block, and we’re scaling up in terms of drilling with our Chinese partner, who’s investing in drilling alongside us under the state pilot project,” Jones said.

Pricing under the existing GSA for Liulin is RMB 1.58 ($0.25) per cubic meter (cm) according to Fortune, but although Beijing often allows developers to sell gas during the exploration phase of a project under a GSA, proper commercialization is dependent on ODP approval.

An official go-ahead for Fortune and its partners would add to the list of approved CBM projects in China. Last month, the NDRC endorsed Sino Oil and Gas Holdings Ltd.’s ODP for its Sanjiao CBM project, which lies directly north of the Liulin block in Shanxi.

Today's RNS is very good news...
Commercial field is very much closer now which will be a boost to nav.
Currently only exploration value in the book, but commercial licence could be worth substantial more with revenue flowing through.
Very exciting prospect for the future here..

Fortune Oil confirms continued progress on Liulin CBM business

Fortune Oil reports continued progress on its Liulin coal bed methane business with the ccontract for the construction of the gas gathering system approved and construction commenced.

The gas gathering system will connect the field production to the company's existing compressed natural gas wholesale station allowing sales to start in 2013

It says field gas rates continue to increase and are currently approximately 28,000 cu m per day.


Story provided by StockMarketWire.com

Fortune Oil (FTO LN*) and Dart Energy (DTE AU)* have reported the approval of the construction of a gas gathering system at the Liulin coal bed methane project in China. This system will connect to existing CNG facilities and consequently allow for gas sales in 2013. Fortune Oil expects construction to be completed by mid-2013. Production at the field continues to ramp up and is currently c1mmcfd (28,000m3/d). No guidance was given for future production growth or the capex for the project. This is a positive announcement, given that we can now expect gas sales in 2013, and is an important progression for this field. We expected the share price to strengthen following this news..

『 China Gas: new bid coming from Sinopec? 』 [2012-9-7]

Sinopec will make a new offer for China Gas if the regulator approves the deal, with a new bid likely to be priced 5-10 per cent above China Gas' latest trading price.

I've been watching with fascination for much of the last year as oil refining major Sinopec (0386.HK) makes a bizarre bid for China Gas (0384.HK), a natural gas pipeline operator that has made it clear it has no desire to be acquired. Despite seeing its US$2.2 billion offer rejected last December and no formal talks or new offers since then, Sinopec has repeatedly extended the deadline for its bid, including the latest extension it has just disclosed through a filing with the Hong Kong Stock Exchange. All this leads me to believe that Sinopec and bidding partner ENN Energy (2688.HK) are preparing to raise their bid for China Gas, with a new offer possible as soon as the deal gets regulatory approval

Yes. I read the full article.
I think at this point, everybody has speculated almost everything by now.
We shall see what happens soon enough.