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.

Very surprising turn around indeed!!!
A pleasant surprise as well.
I was amazes to find that with the sustained selling above 9p that it not only held but seemed to get a decent foothold.
Always good to see lots of sellers drive a sp higher...no matter how hard they try!!
Very strange none the less..

China Gas Holdings shares suspended pending release of price sensitive information.

Reuters) - Gas distributor China Gas Holdings Ltd (0384.HK) plans to buy London-listed Fortune Oil's (FOOI.L) gas business in China for HK$3.1 billion (247.5 million pounds), sources with knowledge of the deal said on Monday.

The deal is part of an asset restructuring at China Gas, the sources said. They declined to be identified as they were not authorised to speak to the media.

Shares of China Gas was suspended on Monday morning. Both China Gas and Fortune Oil declined to comment.

Whats going to happen to F.T.O sp at open?
Likely significant increase because of current undervaluation?

China Gas Holdings Ltd. , which distributes gas to homes on the mainland, plans to sign an agreement to buy U.K.-listed Fortune Oil PLC's gas distribution assets in China in a US$400 million deal, a person familiar with the matter said Monday.

China Gas will pay for the transaction using cash and options in China Gas shares, the person said.

Fortune Oil, a major shareholder in China Gas, entered the spotlight earlier this year when it and China Gas founder Liu Minghui began fighting off a $2.15 billion takeover bid for China Gas by state oil giant China Petroleum & Chemical Corp. /quotes/zigman/269314/quotes/nls/snp SNP +0.51% , or Sinopec, together with gas supplier ENN Energy Holdings Ltd.

Mr. Liu returned to China Gas in August after he was cleared of embezzlement allegations in China that had resulted in his arrest and sparked the hostile takeover bid.

Last month, Sinopec and ENN Energy terminated their offers to acquire China Gas after failing to get regulatory approval.

Shares of China Gas were suspended from trading Monday morning.

(marketwatch.com,Dec.17,2012)

This is getting very interesting !!

Perhaps xmas is early this year.

Any target price for FTO?
MMs will be under pressure..... Wow.

The numbers need to be crunched,details of the deal will unfold.
sp will go up but how much will depend on the deal and whats next?

TDW is not able to offer a price! Oops 10.76! 12 now....> 17p my short term target IMO.
I will hold mine for my children, anyway will just get the dividends

F.T.O. and associates to become one of largest shareholders in China Gas Holdings
and involved in the management.

F.T.O sp moving up again
Ruthbaby where are you?

The sale is more than the current market cap or are my figures wrong......excellent news anyway by the look of it...

fto now holds the right to appoint from fto the managing director of china gas holdings
plus one other director. also to become one of the largest shareholders of cghl.
no wonder the sp of fto has been driven up. fto will with their directors in place in cghl and
their cgg company having the chairman of cghl in partnership with fto their will be many
further opportunities to come from cghl to fto in the future. well done to the board fto is
now part of a major player rather than a minnow in a very large pond.
what say you phillip. gla s.i

Details of the Proposed Transaction

The total consideration for the Proposed Transaction is US$200 million in cash on completion of the Proposed Transaction and a further US$200 million as Deferred Consideration.

Under the Deferred Consideration, the Company may elect to request China Gas to replace its entitlement to Deferred Consideration in a maximum number of 250,000,000 shares in China Gas, based on a benchmark share price (the "Benchmark Price") referenced to the average China Gas share price for the 30 consecutive trading days prior to the request made by the Company between 1 November 2013 and 31 December 2013. The issue of China Gas shares under the Deferred Consideration is subject to approval of the China Gas board and the listing permission from the Hong Kong Stock Exchange.

To the extent that the maximum number of shares at the Benchmark Price is worth less than US$200 million, any shortfall will be paid by China Gas in cash. In addition, the Deferred Consideration contains an accrued interest element at a 6 per cent. annual interest rate, accruing from the date of completion of the Proposed Transaction up to and including the date of payment of the Deferred Consideration provided that no shares are issued in satisfaction of all or part of the Deferred Consideration.

As part of the Proposed Transaction, the Company has the right to nominate two directors to China Gas' board, including one executive director and the managing director

Kicking myself, why didn't buy when writing post 886!!

When this is sold....what is left...as haven't been following as much lately....

very complicated, as fto is a major holder (about 18%) in CGH and has so many rights and other assets .... I say over 60% will be left.

I'm pricing this at about 18p a share, so will hold March future positions for now.

Nice deal!!!!
Brought the sp right up to the brick wall that is 12.5p in half hour.... :-)
Need to go through this release...
Over 3 million sellers against about 700k buyers and we are still up over 11p?????
This must be good news.......