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.

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...

Just back from China. It was much better than expected!

So did you meet with the bod and can you give us any news the market is not yet aware of..... LOL
Glad you had a good time...

C.G.H. closed down 2.6 % a bit of profit taking ,after fantastic rise.
No hot news ahoj?

SOrry to say that I couldn't travel to Hong Kong.


Beijing was OK with many rich and poor living in harmony, but Nanjing, Shanghai and other cities were great. So much activities, people happily spending money, queues in front of restaurants close to city centre, lots of beautiful places to see. In fact Shanghai harbor was more beautiful than any other places I visited so far. I enjoyed every minute of my stay.

Older people have a kind of strange culture. They do not talk so much and therefore do not express their views or feeling. I think this is what we suffer from in respect to FTO.

It must have been a great experience,i would love to go ,thinking
about a holiday there.

I certainly recommend it. I was there for 8 days, loved every minute, improved my knowledge about the country over 10 times.

So your going to buy more shares ahoj!!!!!
Well you helped the share today...:-)

Have friends from the region and they say even now it is still a sleeping dragon.

The potential has not even begun in some respects.....The country is changing but most of the people are mind seated back a few decades. Strangely many who have money still wont spend it out of fear of the family memories of hunger from some years back...

Many still think it will be lost quickly.....but it is changing slowly and with that change comes more confidence.. They can surely learn from us here in the west about squandering...
It is rather funny to see planning approval take nearly a year or more for a development approval.....and then the project is completed within 6 months of start...:-)
But I have confidence in the change going on....
Ahoy..thanks for your report.....I enjoyed it..

UBS lifted its target price for China Gas (00384)
to HK$6.2 from HK$4.9, but downgraded the stock to "neutral" from "buy".
Since the positive profit alert issued on 21 November, the shares have increased by 36%.
Although the anticipation of potential benefits from cooperating with Sinopec has driven
up the share price, the research house said it needs better clarity on the details of the
cooperation to estimate the impact.
UBS changed its our earnings forecast - FY2013: 54%, FY2014: 38%, FY2015: 37% to reflect
the interim results with lower effective tax rate and higher gas sales guidance. (KL)

『 Shanghai natural gas demand to spike 50% on year in winter 』 [2012-12-7]

Winter demand for natural gas in Shanghai is expected to rise by 50% year on year to nearly 30 million cubic meters/day (1.06 Bcf/day), Chinese state company PetroChina said Thursday.

The company said the increase is due to rising gas demand, along with a spike in seasonal consumption during the winter months.

PetroChina said gas demand in winter 2011 hit a peak of 20 million cu m/day. It is therefore making efforts to ensure the city has sufficient gas supplies. It expects to send between 8 million-8.5 million cu m/day of gas to Shanghai this winter season. Shanghai receives domestic and Central Asian gas from PetroChina's First and Second West-East pipelines.

The peak winter season in China typically runs from October to February, when gas demand spikes.

Total gas demand in Shanghai for the whole of this year is expected at 6.2 billion cu m (17.8 million cu m/day) and could rise to 10 billion cu m/year by 2015, PetroChina said.

Shanghai has one of the most diverse supply sources of gas in China. Besides both West-East pipelines, it receives LNG from China National Offshore Oil Corp.'s LNG import terminal, Sinopec's giant Puguang gas block and some volumes from CNOOC's offshore fields.

In November, Sinopec said it expected to supply about 20% year on year more gas to the domestic market, with its total gas sales likely to hit 6.86 billion cu m during the current winter months.

(platts.com, Dec 7, 2012)

More buying at 9p but not much interest at buying above that level..
Going down we bounced from off 9p on about 4 times...so short term getting above 9p is looking like a real hurdle.....for now....

Looks that way,we need a bit of good/positive news for some xmas cheer!!

The bid price has steadily moved up nearer the 9p without to much selling....
A tad early to speculate but the bid price has taken most sells in the top 80s.....

We may just be getting a firm footing for a go above a 9p finish....

Bid and offer now 9p/9.23p........ More selling but so far above 9p...
It just might hold.... If it does, confidence may begin to come back to buy on volume above 9p.... :-)