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.

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!!!

Interesting article- This presents ample expansion opportunities for non-state owned gas distribution companies such as China Gas Holdings, ENN Energy and China Resources Gas. To achieve further growth, these mid-sized companies could merge and combine portfolios to increase market share in certain regions and create value across the gas chain, as well as for shareholders. The latest example of this was with the merger of China Gas and London-listed Fortune Oil’s gas businesses late last year, which included upstream gas pipeline networks and upstream coalbed methane blocks."

http://www.energychinaforum.com/news/69412.shtml

e :

C.G.H.@hk$ 6.220 up over 2% past few days.

I hope this sideways trading doesn't last long....
A nice jump up from here would be good!!!!

It has been fluctuating between 8 and 14p over the last two years and between 6 to 12 over the last five years.
It should break up soon given the news and valuation. I break even at these levels!!!

Good for you ahoj,i think your right,the sp is due for a substantial upward revaluation,sometime soon would be good!!

A nice gold find in Armenia would be very nice now guys!!!!
JORC on there due any time now as well as future investment p;an for the sites!

I think we are up against the ceiling with the current sp.
Lots of buying today but mostly around 11.40p...thats why we need the volume to stay high during this phase, even if the sp does not move up.
Selling can be absorbed and then it can push higher....
Over 3 million volume today would be a target to help the sp now...

I wonder if the sp can hold above 12p today?

I expect it fluctuate up to 13p. Big jump will come then.

12.12p proved to be the block today..
It will be a tough cookie to break because the reward is lucrative..
But very good volume today which is great for now...

China Gas Holdings close @ hk$ 6.540 up 5.5% wow! what is going on now?
This will help F.T.O. sp.

Dont forget CGH shares have done nothing for the last few years...on account of the embezzlement charges and the resignation of their top board members as well as a stalled bid for almost another year...

So the price is just reflecting that....and the fantastic interim results which showed the company was not held back by these adverse events...

Trying to get above the 12.12p level!

Trying to get above the 12.12p level!

Every time it puts its head at or above 12p on the bid side it get walloped!!!
:-)

China Gas Holdings close @ hk$ 6.880 up another 5%.!!
bought more F.T.O yesterday.

China Gas Holdings close @ hk$ 6.880 up another 5%.!!
bought more F.T.O yesterday.