FTO.L Regulatory News (FTO)

24 Feb 2006 07:00

Fortune Oil PLC24 February 2006 24 FEBRUARY 2006 FORTUNE OIL PLC ("Fortune Oil" or "the Company") Trading Update and New Acquisition Trading Update Upon entering a close period ahead of its Annual Results, Fortune Oil is pleasedto announce that underlying operations for the six months ended 31 December 2005have been in line with expectations as announced with the Interim Results inSeptember 2005. In the China natural gas business the Company has been able to meet the surginggas demand this winter. Throughput at the Tongzhou CNG station has exceededexpectations, averaging 180,000 cubic metres per day in January. Acquisition Fortune Oil has agreed to acquire the shares held by and the outstandingshareholder loans owing to the Vitol Group of companies in respect of SouthChina Terminals Ltd, a joint venture with Vitol that holds the interest in theWest Zhuhai Oil Products Terminal, and in respect of Zhanjiang Fu Duo GasCompany Ltd, a subsidiary of Fortune Oil. The agreed total consideration isUS$5.7 (£3.3) million payable in cash. This will increase the effectiveshareholding by the Company in the West Zhuhai Oil Products Terminal from 18.5%to 37% and in the Fu Duo LPG business from 57.5% to 80%. The principal impact will be that the Company has a more influential role in theoperations and the future of the West Zhuhai terminal, in which PetroChina isthe principal joint venture partner. This is one of the most importantterminals used by PetroChina for import and distribution of gasoline and dieselin south China and we anticipate continuing growth in its utilisation rate. In2004, the net profit for the West Zhuhai terminal was £2.2 million while Fu Duohad a net profit of £75,000. The combined gross assets of South China TerminalsLtd and Zhanjiang Fu Duo Gas Company at end December 2004 was £7.8 million. The effective date for the transaction has been agreed to be 31 December 2005.However, since this is a transaction with a related party, the agreement issubject to approval by the Company's shareholders and, given the transaction'srelatively small size, shareholder approval will not be sought until the AGM on21 June 2006. A further announcement on this will follow in due course. New Appointment The Company is pleased to announce that Mr. Tian Jun has been appointed as ChiefOperating Officer for the Company's China operations. Mr. Tian Jun received adegree from Beijing University and a PhD in Economics from the University ofLondon, after which he worked in the City of London. He has been with theFortune Oil Group of companies for seven years, acting as General Manager ofMaoming King Ming Petroleum Company and Deputy General Manager of South ChinaBluesky Aviation Oil Company. Mr. Tian Jun's appointment will strengthen thecorporate management team and enhance our China operations, with an initialfocus on the natural gas business. The Group's annual results will be announced in late April 2006. A presentationof the results will be held at our AGM on Wednesday 21 June 2006 at the OrientalClub, Stratford House, Stratford Place, London W1C 1ES. ENQUIRIES: Fortune Oil PLCBruce McGowan - Executive Vice Chairman Tel: 020 7824 8411 (UK)John Pexton - Deputy Chief Executive Tel: 00 852 2583 3113 (Hong Kong) Pelham Public Relations LimitedArchie Berens Tel: 020 7743 6679 or 07802 442 486 This information is provided by RNS The company news service from the London Stock Exchange