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.

Well well still on target still as expected jolly good.

China stimulus set to boost Fortune Oil
Oil price volatility hit the inventory value of Fortune Oil's Bluesky's aviation refuelling operations.

But the firm's trading update for 2008 shows that natural gas volume sales rose 41% to 354 cubic metres with sustained operating margins in the gas distribution business.

The company has a strong current cash balance of U$95million (66m) and sees no difficulties in meeting current loan repayment facilities and investment commitments.

Fortune Oil stands to benefit from a 400bn stimulus by the Chinese government aimed at boosting the country's domestic economy.

Lets look forward to a good 2009 .

great update but in the wrong market conditions still a good long term hold imo

looks like the directors order is being filled (based on the RNS) strange the way their doing it but they are buys not sells. If you hit this right you should be able to get a very favourable buy price.

Just bought 25000@5.949 building a decent holding.

Bought today @5.88,more buying by directors.

This directors buy will go on for some time millions to go.
:)

Interesting post on one of the other sites today.
'Basically suggesting Septembers interims for first 6 months were prepared on the basis of 1 to 14 yuan.
As one pound sterling now buys less than 10 yuan it recalculates at:-
Revenue= 203 mill
Operating profit= 9 mill
Profit b4 tax= 7.7 mill
Earnings per share= 0.22p That makes the PE 13'

Not checked this yet but if true bril hope their right ! !

Why the crash today?

Not a clue only thing that related to FTO or even China in the remotest sense was the visit of the Chinese PM to UK and that was all positive !
Director order still being filled 13 t0 14 million to go which may be effecting things.

More director buying,bought a few more.

Economic out look China very interesting article have a look see !
Feb 06, 2009
http://www.marketoracle.co.uk/Article8712.html

Still along way to go with the Director order there seems to be difficulty in filling the order which is not surprising considering its size !

Just had a read ,what a good positive article,thanks MCMAHONS,may buy more FTO next week.

CBM. update:
LIULIN CBM ELEVATED TO STATE PILOT PROJECT.

RNS today FORTUNE OIL PLC
Liulin CBM Elevated to State Pilot Project
All as expected full backing

Fortune Oil Chairman comment:
'It is a tremendous honour for Fortune Oil's Liulin CBM project to be elevated to the status of a State Pilot Project. The selection by State Council and CUCBM emphasise the importance of developing China's coal bed methane resource and the key role that the Liulin block will play as a centre for gas development in the Ordos Basin. The decision not only confirms Liulin's high potential as a resource base but also shows Fortune Oil's strong reputation in the CBM industry and our capabilities as a partner for this Pilot Project. We look forward to even closer co-operation with CUCBM and the commencement of gas sales to demonstrate the potential of the Ordos Basin.'

Rather quite in here!

nice rise today maybe news?

That last trade was odd a purchase @ 6.50 !
May be its a change in the wind direction or just a cock up.

Yer its a 6.50