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.

CGH above 6.16

Closed just below the high of the day...
Good late rally over there...

Would be good to see FTO get over 12p today.
CGH doing fine.

It seems like trading going back to normal quickly...Was hoping it would stay active for a while....
We could still get RNS before year end on Armenia which may concentrate minds again..

Thats what we need a xmas/new year positive RNS!

Fortune Oil PLC (the Guarantor)
Fortune Oil PLC is a leading independent energy company engaged in the investment and operations
of oil and natural gas supply projects in China. With almost 20 years of operating history in China,
Fortune Oil PLC has acquired a unique portfolio of high quality oil and natural gas projects across the
country and has formed a strong partnership with domestic and international market leaders. Fortune
Oil PLC started an expansion outside China securing resource projects in recent years. Fortune Oil
PLC is listed on the Main Market of the London Stock Exchange with its operational headquarters in
Hong Kong.

From recent publication...I wonder does the use of the word "started" in the above mean that FTO is now going to concentrate on overseas resources now...
So Dart energy could be on the cards a an investment???

Hope you all had a great xmas,From anoter board!It has been surmised in a number of posts here in the past year or so, Fortune Oil’s investment in three mines in Armenia, Hrazdan, Abovyan and Svarants could be because of the presents of rare earth metals.
Having had a bit of time over the festive period, I decided to have a look in this area for deposits being mined by other mining companies around Hrazdan. The following encourages me greatly.

Hrazdan.
45 miles southeast of Hrazdan is Shahumyan, with a working gold mine owned and run by Paramount Gold mining LTD a subsidiary of Sberbank of Russia.
It is said to have C1+C2 reserves at the Lusadzhur gold deposit totaling 18.5 tonnes.
44 miles to the northwest of Hrazdan in Getik, the Zod and Meghradzor mines have estimated resources of 5.9 million ounces of gold according to the owners Global Gold Corporation. http://www.prnewswire.co.uk/news-releases/global-gold-corp-to-accelerate-armenian-gold-development-156581565.html
Better still. Only 11 miles to northwest of Hrazdan in Meghradzor, GeoProMining (GPM) is reputed to think the ore from Meghradzor mine is very rich and contains from 80 to 150 grams of gold per ton. http://www.ecolur.org/en/news/mining/new-hearings-on-cyanic-plant-in-meghradzor/4407/
I am no geologist, but 11 miles if the geology is in our favor could mean Hrazdans is sitting on the same feature.
Interestingly, according to information on Wiki http://en.wikipedia.org/wiki/Mineral_industry_of_Armenia
Out of the 36 mining projects listed that are currently under construction or underway in Armenia at this time, only 3 are listed as iron ore mines, and those three are owned by Bounty Resources Armenia of which FTO obviously have a 35% interest in.
Bearing in mind some mining companies there are extracting more than one resource.
17 are mining gold, 5 are mining silver, and 17 are extracting copper…. And the list goes on.
So there would seem to be an abundance of higher value resources than that proposed to be mined by Bounty Resources Armenia.
I have always looked at FTO’s BOD as an extremely well respected and accomplished group of individuals, or “team” The deal created with CGH supports this, showing an acute understanding of how deals should be done in China. Unlike Sinopec & ENN Energy Holdings Ltd.’s attempt at acquiring CGH which left egg on the faces of many at both Sinopec and ENN. The BOD of Fortune Oil always play there cards close to their chests.
However I have wondered of late what the disposal of unarguably (IMO) FTO’s best asset including the coal bed methane block controlled by Fortune Oil at Liulin would bring FTO. Well this chapter is obviously still being played out and will be for some time to come I’m sure.
Could it be that Armenia does indeed hold a far more lucrative direction for FTO to pursue?
I am starting to think so! AIMO.
Any thoughts would be greatly received.

PS. Happy New Year To All

Yes... I read this post yesterday and I am agreement with it...
There is potential for surprises there and that is why I await the next JORC report and feasibility study report due out very soon....

I also imagine there could be some tie up with the Dart energy International IPO early 2013...
FTO is moving assets into cash for investment purposes.......

Higher Iron Ore prices is good for FTO. ANother part of business should improve as a result.

From Dell44 on LSE bb....
Its about Fortune Resources in Armenia....
It mentions gold!!!!!

In order to mitigate flood of protests around Hrazdan Iron Mine the Armenian Representative of ‘Fortune Oil’ Company 'Fortune Resources' has disseminated a press release, which particularly says:

“... The company has an intention to develop the iron mines in Hrazdan and Abovyan, but at present it only deals with projecting and specifying mine reserves...

'Fortune Resources' Company intends to invest more than 110 million USD in the development of Hrazdan iron mine and projecting and constructing a gold recovery plant, as well as for mine preparation works, while the volume of investments for prospecting and mining the reserves in the neighboring territories in Abovyan will exceed 400 million USD…

We assure that works conducted by the company so far are not hazardous and won’t pose any hazard in future for the people’s health in neighboring and adjacent territories. We would like to inform that the ore was subjected to in-detailed examination and no uranium was detected…

The public concerns in regard with pollution of underground waters with heavy metals are not justified in any manner…’

Martin Waller: Tempus The Times
Last updated at 12:01AM, January 1 2013

Fortune Oil is an oddity, my only penny share. After a complex deal earlier this month that transferred its Chinese natural resources interests to a Hong Kong-listed company, Fortune will end up with £100 million in cash, a stake in that company worth something like three times that, and other assets in China. But the market capitalisation is little more than £200 million

Martin Waller: Tempus The Times
Last updated at 12:01AM, January 1 2013

Fortune Oil is an oddity, my only penny share. After a complex deal earlier this month that transferred its Chinese natural resources interests to a Hong Kong-listed company, Fortune will end up with £100 million in cash, a stake in that company worth something like three times that, and other assets in China. But the market capitalisation is little more than £200 million

I think we get the circular released about the deal, its as you were......
We need to get a handle on just what this company wants to be really........
Selling our main growth asset could be worrying as it is hard to see where profit (and dividend) growth is going to come from.....

A few more buyers this morning!

My target was 13p by end 2012, and 25 by summer 2013. It didn't get there on Monday!!
I am still young and can wait for a couple of more years.

From another board.FTO has 836M shares in China Gas. Current value of CGGH is 6.10 HKD per share that is about £400M worth to FTO.

Hopefully more investors will come to realise that there is more value in this company than the current price indicates.

From another board.FTO has 836M shares in China Gas. Current value of CGGH is 6.10 HKD per share that is about £400M worth to FTO.

Hopefully more investors will come to realise that there is more value in this company than the current price indicates.

So that's £800m shares in total.... :-)

We are now back to where we were this time last year when all the news broke about our involvement in CGH....
A bid price on or above 11.50p brings out lots of sellers here, it always has done..Twice last year we closed at 12.12p and then got lashed out of it with sells....
Trading volumes have remained higher then normal which may be a positive.....

The chart above shows clearly....on the left is the 2 12.12p closing highs and then fall away, only to spike back up to 11.75p just before final results....the rest is history...

The chart below is a 2 year chart and shows the high from a while back



Unless we can get a close in above 12.50p with this volume....this could be the FTO spike to get out that comes around every now and then... another words a stale trading range!!!
But the volume is a factor this time...its higher then this time last year so absorption of selling may be possible, in which case a new range beckons for FTO...I would say above the old high of 14.75p!!!