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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
        AND EXCHANGE COMMISSION </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>WASHINGTON,
        D.C. 20549 </strong></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FORM
        8-K </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
        REPORT </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pursuant
        to Section 13 or 15(d) of the </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Securities
        Exchange Act of 1934 </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Date
        of report (Date of earliest event reported): October 7,
        2005</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FORTUNE
        OIL &amp; GAS, INC.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><strong>(Exact
        name of registrant as specified in Charter)</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <tr>
              <td valign="top" width="22%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Nevada</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="22%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;<strong>000-51484</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td valign="top" width="22%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>88-0393369</strong></font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="22%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(State
                  or other jurisdiction of <br></strong><strong>incorporation or
                  organization)</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td valign="top" width="22%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(Commission
                  File No.)</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td valign="top" width="22%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(IRS
                  Employee Identification
                  No.)</strong></font></div>
              </td>
            </tr>

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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">305-1656
        Martin Drive</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">White
        Rock, British Columbia</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Canada,
        V4A 6E7</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><strong>(Address
        of Principal Executive Offices) </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">604-531-0385</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><strong>(Issuer
        Telephone number) </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <div>
          <hr style="COLOR: #000000" align="center" noshade size="1" width="100%">
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
        Form
        8-K and other reports filed by Fortune Oil &amp; Gas, Inc. (the "Registrant" or
        the &#8220;Company&#8221;) from time to time with the Securities and Exchange Commission
        (collectively the "Filings") contain forward looking statements and information
        that are based upon beliefs of, and information currently available to, the
        Registrant's management as well as estimates and assumptions made by the
        Registrant's management. When used in the Filings the words "anticipate",
        "believe", "estimate", "expect", "future", "intend", "plan" or the negative
        if
        these terms and similar expressions as they relate to the Registrant or the
        Registrant's management identify forward looking statements. Such statements
        reflect the current view of the Registrant with respect to future events
        and are
        subject to risks, uncertainties, assumptions and other factors relating to
        the
        Registrant's industry, operations and results of operations and any businesses
        that may be acquired by the Registrant. Should one or more of these risks
        or
        uncertainties materialize, or should the underlying assumptions prove incorrect,
        actual results may differ significantly from those anticipated, believed,
        estimated, expected, intended or planned.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>8.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Other
        Events</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        August
        26, 2005, the Company&#8217;s wholly owned subsidiary Indo-Pacific Resources (Java)
        Ltd. (&#8220;IPRJ&#8221;) filed a Request for Arbitration (the &#8220;Complaint&#8221;) against Camar
        Resources Canada Inc. (the Company&#8217;s joint venture partner and owner of the 70%
        working interest in the Bawean PSC and hereinafter &#8220;CRC&#8221;) with the International
        Court of Arbitration (the &#8220;Court&#8221;) in Paris, France (</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Indo-Pacific
        Resources (Java) Ltd . v. Camar Resources Canada Inc.; International Chamber
        of
        Commerce, International Court of Arbitration, Paris, France)</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
        This
        arbitration proceeding has been assigned Matter Number 13 988 EBS. The Complaint
        alleges CRC breached the Joint Operating Agreement (the &#8220;JOA&#8221;) that the parties
        entered into on November 26, 2004 and also breached its fiduciary duty to
        IPRJ
        by failing to take all necessary acts to commence oil production in the Camar
        Field. Among other things, IPRJ alleges that CRC breached the JOA by failing
        to
        purchase, charter, or otherwise engage a sea vessel for the storage of oil
        produced from the Camar Field. IPRJ also alleges that an agreement, either
        express or implied, exists regarding the use of a mooring system at the Camar
        Field (the &#8220;Mooring System Agreement&#8221;) and for which CRC, as operator of the
        Camar Field, is obligated to pay a daily fixed-cost charge, which it has
        failed
        to do. IPRJ seeks a finding that such breaches constitute sufficient grounds
        for
        the removal of CRC as operator under the JOA and for the appointment of a
        new
        operator that IPRJ can choose without any input from CRC. IPRJ is seeking
        monetary damages including approximately $4,850,000 for lost profits that
        will
        increase at a net rate of $550,000 every month (based on current crude prices)
        for every month the Camar field is not put into production, and also
        approximately $319,440 for the fixed charges related to the mooring system
        and
        which will also continue to accrue at an average monthly rate of $36,500.
        </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        October 7, 2005, CRC filed an Answer to IPRJ&#8217;s Request for Arbitration and also
        a Counterclaim against IPRJ. CRC denies the breaches of JOA alleged by IPRJ
        and
        also alleges that no agreement exists regarding the use of a mooring system
        at
        the Camar Field. Further, CRC claims that IPRJ&#8217;s claim for non-payment for the
        mooring system charge is not a claim subject to this arbitration because
        it is a
        collateral claim and does not arise under the JOA, and that a claim for unjust
        enrichment or quantum meruit is not a matter that falls under the jurisdiction
        of the arbitration proceedings. CRC&#8217;s Counterclaim alleges IPRJ has breached the
        Asset Purchase and Sale Agreement (&#8220;PSA&#8221;) that the parties entered into on
        November 26, 2004 because IPRJ has failed to settle all of IPRJ&#8217;s trade debts
        and value added tax principal obligations (including tax penalties and
        associated interest charges owed to Indonesia and hereinafter referred to
        as the
&#8220;Settlement Obligations&#8221;) under the PSA. As a result of IPRJ&#8217;s breach, CRC
        alleges that BPMIGAS, the Indonesian regulatory body charged with approving
        the
        work program and budget required to commence oil production under the Bawean
        PSC, did not approve the 2004 and 2005 work programs and budgets for operation
        of the Camar Field. CRC is seeking monetary damages including $12,000,000
        representing lost production suffered by CRC because of IPRJ&#8217;s failure to settle
        the Settlement Obligations, $1,000,000 per month commencing on the date of
        the
        filing of the Complaint for each month production is not obtained from the
        properties subject to the Bawean PSC, and an award of costs and interest
        on the
        damage amounts stated above. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company intends to vigorously defend CRC&#8217;s allegations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company commenced the Arbitration against CRC in order to force CRC to be
        responsive and to act promptly and definitively in acquiring a new storage
        tanker for operations at the Camar field. The Company maintains that the
        single
        biggest obstacle to resuming production, and the single most critical factor
        in
        assessing why production has ceased is the lack of a storage tanker to hold
        oil
        pending sale. Accordingly, the Company maintains that upon installation of
        a new
        storage tanker CRC and the Company will be able to commence oil production
        and
        the Indonesian government will approve the work program and budget. The Company
        believes that once the storage tanker is operational in the Camar field and
        production resumes, all matters under the Arbitration will be resolved. While
        the Company believes this matter will be fully resolved in a manner not adverse
        to the Company, the Company cannot control the outcome of the Arbitration
        and
        cannot determine presently what losses, if any, it may sustain.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>9.01
        </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Financial
        Statements and Exhibits</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div align="center">
        <table bgcolor="#ffffff" cellpadding="0" cellspacing="0" width="100%">

            <tr bgcolor="#ffffff">
              <td width="4%"><font size="2">(a)</font>&#160;</td>
              <td width="1%">&#160;</td>
              <td width="80%"><font size="2">Financial Statements of Businesses
                Acquired.</font>&#160;</td>
              <td width="15%">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td width="4%">&#160;</td>
              <td width="1%">&#160;</td>
              <td width="80%">&#160;</td>
              <td width="15%">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td width="4%">&#160;</td>
              <td width="1%">&#160;</td>
              <td width="80%"><font size="2">Not applicable.</font>&#160;</td>
              <td width="15%">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td width="4%">&#160;</td>
              <td width="1%">&#160;</td>
              <td width="80%">&#160;</td>
              <td width="15%">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td width="4%"><font size="2">(b)&#160;</font>&#160;</td>
              <td width="1%">&#160;</td>
              <td width="80%"><font size="2">Pro Forma Financial
                Information</font>&#160;</td>
              <td width="15%">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td width="4%">&#160;</td>
              <td width="1%">&#160;</td>
              <td width="80%">&#160;</td>
              <td width="15%">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td width="4%">&#160;</td>
              <td width="1%">&#160;</td>
              <td width="80%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
                  applicable.</font>&#160;</div>
              </td>
              <td width="15%">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td width="4%">&#160;</td>
              <td width="1%">&#160;</td>
              <td width="80%">&#160;</td>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES
        </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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        to the requirements of the Securities Exchange Act of 1934, the Registrant
        has
        duly caused this Report to be signed on its behalf by the undersigned hereunto
        duly authorized. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fortune
                  Oil &amp; Gas, Inc.</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dated:
                  October 13, 2005</font></div>
              </td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:&#160;&#160;</font></td>
              <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>/s/
                James B.
                Wensveen&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
                </u></font></td>
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                  Executive Officer</strong></font></div>
              </td>
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{"company-data": {"conformed-name": "FORTUNE OIL & GAS INC", "cik": "0001119949", "assigned-sic": "1311", "irs-number": "000000000"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-51484", "film-number": "051135780"}, "business-address": {"street1": "305-1656 MARTIN DRIVE", "city": "WHITE ROCK", "state": "A1", "zip": "V4A-6E7", "phone": "(604) 531-0385"}, "mail-address": {"street1": "305-1656 MARTIN DRIVE", "city": "WHITE ROCK", "state": "A1", "zip": "V4A-6E7"}}
Unassociated Document
SECURITIES
        AND EXCHANGE COMMISSION
WASHINGTON,
        D.C. 20549
FORM
        8-K
CURRENT
        REPORT
Pursuant
        to Section 13 or 15(d) of the
Securities
        Exchange Act of 1934
Date
        of report (Date of earliest event reported): October 7,
        2005
FORTUNE
        OIL & GAS, INC.
(Exact
        name of registrant as specified in Charter)
Nevada
000-51484
88-0393369
(State
                  or other jurisdiction of
incorporation or
                  organization)
(Commission
                  File No.)
(IRS
                  Employee Identification
                  No.)
305-1656
        Martin Drive
White
        Rock, British Columbia
Canada,
        V4A 6E7
(Address
        of Principal Executive Offices)
604-531-0385
(Issuer
        Telephone number)
This
        Form
        8-K and other reports filed by Fortune Oil & Gas, Inc. (the "Registrant" or
        the "Company") from time to time with the Securities and Exchange Commission
        (collectively the "Filings") contain forward looking statements and information
        that are based upon beliefs of, and information currently available to, the
        Registrant's management as well as estimates and assumptions made by the
        Registrant's management. When used in the Filings the words "anticipate",
        "believe", "estimate", "expect", "future", "intend", "plan" or the negative
        if
        these terms and similar expressions as they relate to the Registrant or the
        Registrant's management identify forward looking statements. Such statements
        reflect the current view of the Registrant with respect to future events
        and are
        subject to risks, uncertainties, assumptions and other factors relating to
        the
        Registrant's industry, operations and results of operations and any businesses
        that may be acquired by the Registrant. Should one or more of these risks
        or
        uncertainties materialize, or should the underlying assumptions prove incorrect,
        actual results may differ significantly from those anticipated, believed,
        estimated, expected, intended or planned.
Item
8.01
Other
        Events
On
        August
        26, 2005, the Company's wholly owned subsidiary Indo-Pacific Resources (Java)
        Ltd. ("IPRJ") filed a Request for Arbitration (the "Complaint") against Camar
        Resources Canada Inc. (the Company's joint venture partner and owner of the 70%
        working interest in the Bawean PSC and hereinafter "CRC") with the International
        Court of Arbitration (the "Court") in Paris, France (
Indo-Pacific
        Resources (Java) Ltd . v. Camar Resources Canada Inc.; International Chamber
        of
        Commerce, International Court of Arbitration, Paris, France)
.
        This
        arbitration proceeding has been assigned Matter Number 13 988 EBS. The Complaint
        alleges CRC breached the Joint Operating Agreement (the "JOA") that the parties
        entered into on November 26, 2004 and also breached its fiduciary duty to
        IPRJ
        by failing to take all necessary acts to commence oil production in the Camar
        Field. Among other things, IPRJ alleges that CRC breached the JOA by failing
        to
        purchase, charter, or otherwise engage a sea vessel for the storage of oil
        produced from the Camar Field. IPRJ also alleges that an agreement, either
        express or implied, exists regarding the use of a mooring system at the Camar
        Field (the "Mooring System Agreement") and for which CRC, as operator of the
        Camar Field, is obligated to pay a daily fixed-cost charge, which it has
        failed
        to do. IPRJ seeks a finding that such breaches constitute sufficient grounds
        for
        the removal of CRC as operator under the JOA and for the appointment of a
        new
        operator that IPRJ can choose without any input from CRC. IPRJ is seeking
        monetary damages including approximately $4,850,000 for lost profits that
        will
        increase at a net rate of $550,000 every month (based on current crude prices)
        for every month the Camar field is not put into production, and also
        approximately $319,440 for the fixed charges related to the mooring system
        and
        which will also continue to accrue at an average monthly rate of $36,500.
On
        October 7, 2005, CRC filed an Answer to IPRJ's Request for Arbitration and also
        a Counterclaim against IPRJ. CRC denies the breaches of JOA alleged by IPRJ
        and
        also alleges that no agreement exists regarding the use of a mooring system
        at
        the Camar Field. Further, CRC claims that IPRJ's claim for non-payment for the
        mooring system charge is not a claim subject to this arbitration because
        it is a
        collateral claim and does not arise under the JOA, and that a claim for unjust
        enrichment or quantum meruit is not a matter that falls under the jurisdiction
        of the arbitration proceedings. CRC's Counterclaim alleges IPRJ has breached the
        Asset Purchase and Sale Agreement ("PSA") that the parties entered into on
        November 26, 2004 because IPRJ has failed to settle all of IPRJ's trade debts
        and value added tax principal obligations (including tax penalties and
        associated interest charges owed to Indonesia and hereinafter referred to
        as the
"Settlement Obligations") under the PSA. As a result of IPRJ's breach, CRC
        alleges that BPMIGAS, the Indonesian regulatory body charged with approving
        the
        work program and budget required to commence oil production under the Bawean
        PSC, did not approve the 2004 and 2005 work programs and budgets for operation
        of the Camar Field. CRC is seeking monetary damages including $12,000,000
        representing lost production suffered by CRC because of IPRJ's failure to settle
        the Settlement Obligations, $1,000,000 per month commencing on the date of
        the
        filing of the Complaint for each month production is not obtained from the
        properties subject to the Bawean PSC, and an award of costs and interest
        on the
        damage amounts stated above.
The
        Company intends to vigorously defend CRC's allegations.
The
        Company commenced the Arbitration against CRC in order to force CRC to be
        responsive and to act promptly and definitively in acquiring a new storage
        tanker for operations at the Camar field. The Company maintains that the
        single
        biggest obstacle to resuming production, and the single most critical factor
        in
        assessing why production has ceased is the lack of a storage tanker to hold
        oil
        pending sale. Accordingly, the Company maintains that upon installation of
        a new
        storage tanker CRC and the Company will be able to commence oil production
        and
        the Indonesian government will approve the work program and budget. The Company
        believes that once the storage tanker is operational in the Camar field and
        production resumes, all matters under the Arbitration will be resolved. While
        the Company believes this matter will be fully resolved in a manner not adverse
        to the Company, the Company cannot control the outcome of the Arbitration
        and
        cannot determine presently what losses, if any, it may sustain.
Item
9.01
Financial
        Statements and Exhibits
(a)
Financial Statements of Businesses
                Acquired.
Not applicable.
(b)
Pro Forma Financial
                Information
Not
                  applicable.
(c)
Exhibits.
None.
SIGNATURES
Pursuant
        to the requirements of the Securities Exchange Act of 1934, the Registrant
        has
        duly caused this Report to be signed on its behalf by the undersigned hereunto
        duly authorized.
Fortune
                  Oil & Gas, Inc.
Dated:
                  October 13, 2005
By:
/s/
                James B.
                Wensveen
Chief
                  Executive Officer