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.

China Gas Holdings close @ hk$ 5.600 up 3.9% on the day!
up 8.75% over past 3 days,i wonder what is going on now.

FTO has to jump. They make a big profit of 50% on their holding.

Starting to move up at last?

I was optimistic about CGH, but not so much. It appears that interest in that company is huge.
Clever FTO.

Worth remembering also that just over 50% of the company is now held between between CGG, S&K Holdings (who are still buying in the market presently) and BEG, who have made absolutely no statement about their investment in CGH.

Standard Chartered reiterated its "outperform"
rating on China Gas (00384) and raised its target price from HK$5.6 to HK$6.4.
The research hosue said China Gas's 1H FY2013 profit beat the consensus. Meanwhile, the
company on 21 November signalled a significant profit increase.
StanChart believes that organic growth is unaffected by the economy, supported by 39%
(1H FY2012: 35%) household penetration. Lower finance cost and tax rates also boost
near-term profit. (KL)

And also this..
27 Nov 2012 17:37 Market News

(Infocast News) SK Holdings Co., Ltd. increased its long position in China Gas Holdings Ltd. (00384) from 14.95% to 15.12% on November 21 by acquiring 7.864 million shares at HK$4.713 per share on average on the Stock Exchange, the Stock Exchange's Disclosure of Interests information shows.

Possibly because they are seen more as a take over target then before...
The stock price of CHINA GAS HOLD (00384.HK) has surged 16% in the past one week and 24% over the last three months, as the company issued positive profit alert on 21 November; market raised speculation that CHINA GAS HOLD will be taken over soon; and corporate governance issues have eased as the case of alleged embezzlement against its two executive directors was closed, Deutsche Bank said in a report. CHINA GAS HOLD is kept Hold with target price hiked from $3 to $4.4.

So a bid for CGH may still be on the cards especially after these excellent results.
A company like CGH cannot be put together like this anymore due to new regulations in Chinese markets...so it is a very big fish that is growing bigger each day.....

Also keep an eye on Dart energy International as they may have news that could involve us as well.....
December is a good month for FTO and this year should be no different....

Thanks for those really good posts Ruthbaby,i always look forward to your posts keep them coming,i bought more F.T.O. last week i hope you are back in,you are obviously interestd/exited abought recent news with CGH,lets hope for more news to bring us
xmas cheer!!

A very good interview on Bloomberg news Asia with Eric Cheow? of China Gas Holdings...

http://www.businessweek.com/videos/2012-11-28/china-gas-cfo-on-business-outlook-growth-strategy

They are very much on the acquisition trail now...as they were refrained from doing so while the Sinopec bid was current...
Just paste the link in..worth a look..

Interview very positive,CGH sp closed@ hk$ 5.790 up another 3.4%.

This is not just buying because of good results in my view..
Somebody else is stake building with perhaps a bigger offer or a more realistic bid price... and also talking in the background to other large stakeholders before making a bid...
Just my view..

Makes a lot of sense,very plausable,the possible growth for CGH and other companies
involved in the gas sector looks very promising to say the least.

I agree also.
The embezzlement protracted episode pushed the sp right down (it was at HK$4.90 before the episode) 3 years ago... so it could be making up for lost time quickly...
They certainly are well placed...

Couldnt resist bought a few more.

If the bid can get above 9p we could see triggered buy orders as it has broken through its 20 day ma..
Getting tight now...

C.G.H. close @ hk$ 6.030 up over 4%
thats a 11% rise in 3 days.

The volume has been very high there.
Rises like this usually come in for profit taking well before now...
Kunlun energy may be buying through subsidiaries to hide their holdings.
BEG is a major JV with Petrochina and \Kunlun is part of Petrochina....
This smells like a bid situation still..

The plot thickens,I would hope Fto would benifit from being involved with the
Big players,will get news along the way.

C.G.H. closed up 4% @ HK$ 6.270.
keeps rising
if F.T.O. could invest in a company like this once a year it could give up
the gas and oil business,ha ha .

China may see more pricing reforms after Beijing hikes gas prices by 11% 』 [2012-12-5]

The 11% increase in natural gas prices in Beijing implemented by the local government last week is an indication that the central government might soon unveil more gas pricing reforms, analysts said Tuesday.

The Development and Reform Commission in Beijing increased residential gas prices by Yuan 0.23 (3.6 cents)/cubic meter to Yuan 2.28/cu m from Friday last week.

Households in the city would have to pay Yuan 4.6 more each month for their gas, Xinhua reported Monday, adding that low-income families would be offered subsidies to cope with the added cost.

The Beijing municipal government has been considering a gas price increase since 2010 -- after the last major price hike by the central government -- but delayed any adjustments due to inflation concerns last year.

The National Development and Reform Commission had raised onshore natural gas wellhead prices across the country by Yuan 0.23/cu m, or roughly 25%, in June 2010.

Beijing's city gas consumption is expected to rise by 14% year on year in 2012 to 8.7 billion cu m, and this could hit 20 Bcm by 2015, Xinhua said. Natural gas is becoming the dominant fuel for public transport in Beijing while gas penetration in the city is now the highest in China with more than 4.7 million households connected.

In December 2011 the NDRC introduced a new pilot pricing mechanism in southern Guangxi and Guangdong provinces, linking the price of gas to that of LPG and fuel oil traded in Shanghai. The previous method took into account pipeline and other tariffs.

Since then, the government has repeatedly said it is committed to extending the reforms to other parts of the country.

In its China Gas Monthly report issued Monday, Beijing-based energy consultants 3E said that "pressures are mounting over the inflexible and even irrational domestic natural gas pricing mechanism," particularly as the volume of more expensive gas imports increases. "As inflation pressures are easing, a new round of gas pricing reforms is expected," the report said.

In November, the provincial government in south central Hunan province also proposed a trial gas pricing mechanism in the residential sector in the three major cities of Changsha, Zhuzhou and Xiangtan.

On Monday, the NDRC released the official gas development plan under the current 12th Five Year Plan, again stressing the need for pricing reforms to reflect the value and scarcity of natural gas relative to other energy resources.

Nomura Research said in a report Tuesday that it sees another wellhead gas price increase as necessary, and as something that can easily be passed on from producers to end-users. "Thus, in our view, the gas distributors should be able to fully pass through any wellhead price hike and keep their absolute dollar margin unchanged," Nomura said.

(platts.com, Dec 5, 2012)

Stock Quote
Day's Close 8.6500
Previous Close 8.6000
Previous Open 8.9900
Change +0.0500
% Change +0.58%
Volume 936,000

Stock Activity
Day's Open 8.8000
Day's High 9.0000
Day's Low 8.6100
20-Day Close M.A. 8.2883
50-Day Close M.A. 8.5437
65-Day Volume M.A. 816,612

We are still staying above the 50 day MA which has surprised me..
Volume has also increased...interesting...