Salamander Energy Spuds South Phu Horm 1 Well in North East Thailand

Monday, February 18, 2008

Salamander Energy PLC, an independent upstream oil and gas exploration and production company focused on South East Asia, announces the spudding of the South Phu Horm 1 (SPH-1) appraisal well in Block L15/43, Khorat Basin, North East Thailand.

The SPH-1 location is approximately 3 km south of PH-5, the most southerly producing well on the Sinphuhorm* Gas Field. It is being drilled using the Ensign-16 rig and is targeting the Pha Nok Khao formation and is planned to TD at a depth of approximately 2,460 metres sub-sea.

The well will appraise the southerly extent of the Sinphuhorm Gas Field that is currently producing approximately 88 MMscfd. Salamander has a 9.5% interest in the EU1 and E5N production licences in which the current producing wells are located and a 27.2% interest in the surrounding L15/43 concession in which the SPH-1 well is located.

James Menzies, Chief Executive of Salamander, commented:
“The appraisal of the southerly extent of the Sinphuhorm Field has potential to provide material resource upside to Salamander. This represents the third well of a drilling campaign appraising five fields and discoveries this year. In addition we are planning on drilling at least a further six exploration wells during 2008.”

*The “Sinphuhorm Natural Gas Field” is the new name for the gas field previously known as “Phu Horm”. This was recently changed following a Royal Decree.

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Oil hits record over $100 on OPEC supply concerns

By Matthew Robinson Tue Feb 19, 4:49 PM ET

NEW YORK (Reuters) - Oil surged nearly 5 percent on Tuesday to hit a record over $100 a barrel on expectations OPEC will not hike output to ease high prices next month despite the economic woes of top consumer the United States.

U.S. crude settled up $4.51 at $100.01 a barrel after hitting $100.10 a barrel, a penny higher than the previous high struck on January 3. London Brent crude settled up $3.65 at $98.56 a barrel.

News Nigerian oil delta rebel leader Henry Okah had died raised worries about supplies from the OPEC country, but a spokesman for the government later said he was alive and in custody.

"Certainly OPEC is one of the supportive factors in the market as it has said it will not boost output at its meeting next month," said Eric Wittenauer, analyst at AG Edwards.

"News that Nigerian rebels said their leader Henry Okah was shot dead helped give traders a reason for bidding the market up in the afternoon."

Worries about the economic health of the United States pushed oil off its record peak, but signs that OPEC will hold or even cut output when it meets on March 5 sent prices back to triple digits.

"OPEC should maintain production or cut production," said Venezuela Oil Minister Rafael Ramirez, echoing comments made by OPEC President Chakib Khelil on Monday.

Other cartel officials said it would be hard to justify a reduction in supplies at current price levels, despite expectations demand will dip seasonally as the Northern Hemisphere winter comes to an end.

A rush of speculative investment in oil and other commodities helped push up prices in the asset class, traders said.

Further price support came from U.S. refinery problems and tensions between U.S. oil giant Exxon Mobil (XOM.N) and Venezuela over the takeover of an oil project last year.

A fire on Monday shut Alon USA Energy's 67,000 barrel per day refinery in Big Spring, Texas, and officials said they were expecting to partially restart the plant in about two months.

The outage, as well as seasonal refinery maintenance, helped send U.S. RBOB gasoline and heating oil futures to record highs as well.

Crude prices began to rally last week when Venezuela cut exports to Exxon Mobil after the U.S. company won court rulings to freeze $12 billion of the OPEC nation's assets as part of an arbitration battle.

Venezuelan President Hugo Chavez said on Sunday the state could sue Exxon for unpaid oil taxes and repeated threats to cut oil sales to the United States.

A move by LUKOIL to cut supplies to German refineries over a pricing dispute also put markets on edge.

A Reuters poll of analysts forecast U.S. government data due out on Thursday would show a 2.3 million barrel build in U.S. crude stocks, a 2 million barrel draw in distillate inventories, and a 600,000 barrel rise in gasoline stocks.

(Additional reporting by Gene Ramos in New York, Ikuko Kao in London, Chua Baizhen in Singapore; editing by Jim Marshall)

Why Bio Diesel?

		Why Biodiesel? What Is Biodiesel Biodiesel is a renewable fuel made by a chemical reaction of alcohol and vegetable or animal oils, fats, or greases. Through a refinery process called transesterification, the reaction removes the glycerin -- a by-product that is not good for your engine -- which can be made into soap. Biodiesel can be used in any diesel engine in pure form or blended with petroleum diesel at any level. Even a blend of 20% bio- and 80% petroleum diesel will significantly reduce carcinogenic emissions and gases that may contribute to global warming. Safer and Cleaner Fuel Biodiesel offers fleet operators a safer, cleaner alternative to petroleum diesel. Biodiesel is made from renewable fats and oils, such as vegetable oils, through a simple refining process. Pacific Biodiesel produces biodiesel from used restaurant fryer oil. One of the main components for fryer oil are soybeans, a major crop produced by almost 400,000 farmers in 29 states. Biodiesel is recognized as an alternative fuel. In its neat form and in blends of 20% or more with petroleum diesel, the US Department of Energy has acknowledged biodiesel as an alternative fuel. Biodiesel can be used for vehicle credits under the Energy Policy Act. Biodiesel operates in conventional compression-ignition engines, from light to heavy-duty, just like petroleum diesel. No engine modifications are required, and biodiesel maintains the payload capacity and range of diesel. Since engine modifications are not required, there's no need to change vehicles, spare parts inventories, refueling stations or specially skilled mechanics. Vehicle hoses need to be checked after the first 6 months of operation on biodiesel. Replacement of non-compatible hoses may be necessary, but is not usually difficult or expensive. Blends of 20% or less tend to have little effect on even non-compatible hoses. Biodiesel cuts down on targeted emissions. Biodiesel used in a 20 percent blend with petroleum diesel and a catalytic converter will cut air pollution. Particulate matter is reduced 31 percent, carbon monoxide by 21 percent and total hydrocarbons by 47 percent. Biodiesel used in a blend will also reduce sulfur emissions and aromatics. Using 100% biodiesel further reduces emissions and carcinogenic compounds. Practical Alternative for Marine Market Biodiesel use in the marine market can be practical and safe. In its pure form, biodiesel is less harsh on marine environments and easier for boaters to handle and store. The marine industry consumes about 10 percent of the petroleum diesel in the U.S. Biodiesel can work in several marine factions. Because biodiesel can replace or blend with petroleum diesel without engine modifications, it is a viable alternative to several categories of the marine industry, including: recreational boats, inland commercial and ocean-going commercial ships, research vessels and the U.S. Coast Guard Fleet. Today, much of the emphasis is on recreational boats, which consume about 95 million gallons of diesel fuel annually. Biodiesel is a safe alternative fuel. Biodiesel has a higher flash point than regular diesel. It is classified as non-flammable by the NFPA, and is not required to carry a Hazardous Material label when being shipped. Biodiesel is easier on engines. Biodiesel blended as low as a 2% rate with low sulfer or ultra-low sulfer petroleum diesel increases lubricity to traditional high sulfur diesel fuel levels. Field tests indicate that engine life is increased with biodiesel usage. Biodiesel is "user-friendly." The use of biodiesel and biodiesel blends results in a noticeable change in exhaust odor. The reduction in smell and change of odor are easier on ship workers and pleasure craft boaters. In fact, it's been compared to the smell of French fries. Users also report no eye irritation. Since biodiesel is oxygenated, diesel engines have more complete combustion than when using petroleum fuel. The Role of Biodiesel The goal of the biodiesel industry is not to replace petroleum diesel, but to extend its usefulness. Biodiesel is one of several alternative fuels that have a place in the development of a balanced energy policy. The role of biodiesel is to contribute to the longevity and cleanliness of diesel engines. The most likely use of biodiesel will be in certain niche markets that require a cleaner-burning, biodegradable fuel. Emissions: The Clean Air Act allows the Environmental Protection Agency (EPA) to assess the contribution of non-road emissions to air pollution. EPA proposes to include marine diesel compression-ignition engines in the same regulatory framework as land-based, non-road compression-ignition engines. Regulatory Liability: The Oil Pollution Act of 1990 increases the civil and criminal penalties for causing spills and for violating marine safety and environmental protection laws. The law applies to all vessels, and fines up to $10,000 per day can be levied against serious offenders. Clean Water Act: The Clean Water Act requires states to establish standards for pollutants like grease and oil, in an effort to restore and maintain the chemical, physical and biological condition of U.S. waters. Specifications Comparative Physical Properties Note: Pacific Biodiesel fuel is a higher quality fuel than the fuel shown below. This chart is for comparitive purposes only. See our Fuel Properties. TEST LOW SULFUR CONTENT DIESEL RAPESEED METHYL ESTER NEAT RAPESEED OIL RAPESEED ETHYL ESTER HYDRO- GENATED SOY ETHYL ESTER CETANE NUMBER 46 61.2 42.6 59.7 61 FLASH POINT, °C 67 180 270 185 144 CLOUD POINT, °C -12 -2 -11 -2 7 POUR POINT, °C -16 -10 NA -20 7 BOILING POINT, °C 191 347 311 273 142 VISCOSITY, (cs) @ 40° C 2.98 5.65 37.0 6.1 5.78 SULFUR (%,wt) 0.036 0.012 0.022 0.012 0.023 NITROGEN, ppm 0 6 NA 7 12 HEAT OF COMBUSTION -BTUs/lb. (gross) -kj/kg (gross) 19,500 46,420 17.500 40,600 17,370 40,400 17,500 40,510 17,113 39,800 SPECIFIC GRAVITY 0.8495 0.8802 0.906 0.876 0.872

Copyright © 1997-2008 Pacific Biodiesel, Inc.? All rights reserved.

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Petroleum Product

Date:16/2/2008

C2T Trading Company

C2Ttrading.bloombiz.com

Preliminary Offer ;

TO: THE PRINCIPAL END-BUYERS

COMMODITY:

1) D2 Gasoil L-0.02-62 GOST 305-82 (Russian Export Fuel Oil specification).

QUANTITY: 500,000 MT up per month for 12 period contract.

Minimaly conract must be 200,000MT monthly.

PRICE: The price shall be at fixed price throughout the one year contract at

USD $420/MT +/- Gross to Seller. CIF ASWP

(Incoterms 2000).

Or price shall be at Platt price at Discount USD $25/MT

(depending on the conditions of buyer).

2) MAZUT 100 GOST 10585-75 (Russian Export Heavy Fuel Oil M-100

specification).

QUANTITY: 500,000 MT up per month for 12 period contract.

Minimaly conract must be 100,000MT monthly.

PRICE: The price shall be at fixed price throughout the one year contract at

USD $350/MT+/- Gross to Seller. CIF ASWP

3)Russian Export Blend Grude Oil GOST 9965 (REBCO) specification attached.

QUANTITY:Up to 30 MILLION barrels per month for 12 period contract.

Minimaly conract must be 1,000,000 BBL monthly.

PRICE: The price shall be determined by reference to the average of the three

Consecutive days around the Bill of Lading (B/L) date (the day before,

and the day after) to be referred to the average quotation as reported by

PLATT’S Oil Gram price report, product price assessments. Cargoes

CIF MED. Basis Genova/Laveera Europe Marketscan Wire publication

With the Heading “Cargoes CIF” MED Genova/Lavera against Russian

Export Blend Grude Oil.

DISCOUNT: GROSS USD $6.00/BBL CIF AND NET USD $4.00/BBL TO BUYER.

IMPORTANT NOTE: THE PRICES FOR INDICATION PURPOSE ONLY AND CAN ONLY BE FIXED AFTER SUBMISSION OF ICPO.

CLAUSE 1:

NAME OF COMMODITY: As per listed (Russian Export Fuel Oil specification)

COUNTRY OF ORIGIN: RUSSIA

LOADING PORT: BALTIC OR BLACK SEA PORT.

DELIVERY: CIF ASWP PORT.

CLAUSE 2: DELIVERY QUANTITY AND DELIVERY PERIOD

THE TOTAL QUANTITY OF THE COMMODITIES CAN BE DELIVERED MONTHLY FOR ONE YEAR WITH ROLL OVER AND EXENSION UP TO 60 MONTHS. BUYER MUST ISSUE LETTER OF CREDIT WITHIN 20 DAYS FROM THE SELLERS FCO. THE SHIPMENT SHALL BE IN EFFECT NO LATER THAN 30 DAYS FROM THE DATE OF RECEIVING THE CONFIRMED L/C AND COMPLETE IN ALL RESPECTS ACCORDING TO THE TERMS SET FORTH.

CLAUSE 3: STANDARD SPECIFICATIONS

Russian Export grade (Russian Export Fuel Oil specification) attached.

CONTRACT QUANTITY: As per listed above

DELIVERY : CIF ASWP (Incoterms 2000)

ORIGIN : COUNTRY OF RUSSIA

PACKAGING : BULK

PAYMENT : Type of Bank instrument as payment guarantee United States Dollars (USD) to be assisted by Irrevocable, confirmed, transferable or non-transferable and monthly auto-revolving Documentary Letter of Credit (DLC) 100% at sight from top 30 ranking prime World Banks at sight cover each monthly shipments and that revolves and is automatically reinstated after payment for the first shipment until completion of the contract quantity, DL/C beneficiary is Seller.

INSPECTION SGS/CCIC INSPECTION AT LOADING PORT BY

SELLER

LOADING HANDLING OF GOODS, FRIEGHT & INSURANS TO

BE INCLUDED IN PRICE AT LOADING SIGHT

PROCEDURE:

Petroleum : Procedures

1. Buyer issues LOI to the Seller.

2. Seller issues the FCO to the Buyer and the Buyer signs and seals the acceptance of the FCO and the returns the original to the Seller. (FCO Valid 5 Working Days)

3. Within 5 international banking days the Buyer must issue Irrevocable Confirmed Purchase Order (ICPO) and the Bank Comfort Letter (BCL) signed by 2 Bank officers to the Seller Bank. (Soft Probe or RWA may be acceptable)

4. The Seller will issue a softcopy of the Agreements to the Buyer and when both parties agree on the draft both parties will sign the Contract in a way convenient to both. If by courier, then four originals will be sent to the buyer for the signing and return.

5. Buyer’s Bank issues Seller’s Bank and an Unconditional, Callable, Irrevocable, Transferable, Negotiable, Divisible, Assignable Bank Guarantee (BG), for the value of one or three month’s supply. From A Prime 25 World Rated Bank, and Posted on European Euroclear for Verification.

6. Within 21 international banking days after Seller receives Positive Verification and Validation of the BCL + ICPO and the BG, the Seller will provide Part Proof of Product-Allocation Number.

7. Buyer’s Bank issues Seller’s Bank a Non Operative, Revolving, Assignable, Irrevocable, Divisible, Transferable, Confirmed, Documentary Letter of Credit (DLC) (one month’s supply worth).

8. Seller issues Operative Performance Bond for 2% of one month’s delivery, which automatically makes Buyers DLC operative.

9. The Seller’s bank will automatically make the 2% Performance Bond (PB) Operative within 3 international banking days after the Revolving Letter of Credit (DLC) issued by Buyer to the Seller becomes operative.

10.The Seller will provide Charter Pay Agreement to the Buyer, within 14 international banking days, after the Seller receives and confirms the DLC (and other documents listed above).

11. After the Seller’s bank receives and confirms the DLC (and other documents listed above), the Seller will within 45 Working days proceed to start loading the Commodity based on the DLC received and confirmed, quantity, port of delivery, import license and other related documents from the Buyer. The 2^nd and subsequent delivery will be within blocks of 30 Working days (as per loading schedule).

12. Shipment(s) take place as per contract.

13.Others are as per contract

We also confirm, that for registration allocation a product addressed to the buyer the seller under the law should receive the confirmed application (ICPO) and BCL. Only after that the seller can let out (release) the contract with registered in the ministry of power of Russia number. Under preliminary presented contracts on the other hand our seller has no right to work. Therefore we suggest you to work on the presented procedure. We are capable to work in the most brief terms. We hope for mutual understanding and long-term cooperation.

This OFFER valid for a period of FIFTEEN DAYS (15) from date of issue

Best Regard

Itthirat Yamaphai

C2T Trading company

SPECIFICATIONS:

Russian Origin D2 Gasoil L-0.02 – 62 (GOST 305 - 82)

1	Cezanne number min		45.0 min
2	Distillation, 50%	°C	280.0 max
3	96 % (final boiling point)	°C	360.0 max
4	Kinematics Viscosity at °C	mm² / CST	3.0 min / 6.0 max
5	Sulphur	% max	0.02
6	Merchantman sulphur	% max	0.01
7	Hydrogen Sophie		Absent
8	Copper Strip test		Pass
9	Water soluble acids and alkalis		Absent
10	Actual gum content	mg / 100cm²	40.0 max
11	Acidity	mg / 100cm² of gas oil	5.0
12	Iodine numbers	g / 100g	6.0 max
13	Ash	%	0.01
14	Capability of 10% residue	% max	0.20
15	Filtration coefficient		3.0 max
16	Sediments		Absent
17	Water		Absent
18	Density at 20 °C	Kg / m³	860.0
19	Flesh point ( closed – up)	°C	65.5 min
20	Pour point from Mar to Oct ( summer )	°C	- 5.0 max
	Pour point from Nov to Feb ( winter )	°C	- 10.0 max
21	Cloud point from Mar to Oct ( summer )	°C	0.0 max
	Cloud point from Nov to Feb ( winter )	°C	- 5.0 max
22	The product is guaranteed by the Seller NOT to contain bacteria and other micro – organism’s contamination above normal level (1000 CFU / L )

Specification of Heavy Fuel Oil / MAZUT M100 (GOST 10585/75)

COMPONENT	RESULT
1. Ash content, not more % 灰份	0,14
2. Mass fraction of sulphur, not more % 硫份 - low – sulphur – residual – oil	0,5
3. Temperature of the flash, not less ºC in the closed crucible	≥65
In the open crucible ºC	110 min
4. The temperature of solidification, not higher ºC	25
5. Kinematics viscosity at 50ºC 运动粘度	118 max
6. Water content 水最大	0.5%
7. Mechanical impurities 机械杂质	Lower than 0.1%
8. Acidity 酸	Lower than 5 mg KOH/ 100ml
9. Alkalinity 碱	Nil
10. Gross Calorific Value Kcal/kg / KJ/kg 热值	Min9200/41300
11. Density at 15.0 deg. C Kg/l 密度	0.890-0.9200
12. Hydrogen Sulfide Content (H2S) pom	0.5 max
13. Carbon Residua 残碳物	Lower than 7%
14. Vanadium (V) ppm 钒	23
15. Aluminium (Al) ppm 铝	5
16. Silikon (Si) ppm 硅	12
17. Nickel (Ni) ppm 镍	49
18. Asphaltenes m/m 沥青质	3.6%
19. Destilation @4 mm Hg
Extracted to 760 mm Hg 以下为馏程
Initial Boiling Point deg. C 最初沸点	216
5% recovered deg. C	259
10% recovered deg. C	310
20% recovered deg. C	358
30% recovered deg. C	445
40% recovered deg. C	502
50% recovered deg. C	534
60% recovered deg. C	538
75% recovered deg. C	545
80% recovered deg. C	-
90% recovered deg. C	-
Final Boiling point deg. C	550
Percent Recovered vol	78%
Residue vol	22%
Total Nitrogen m/m	0.192%
20. Sodium (Na) ppm	15

REBCO Buyer/Refinery should provide the following:

1. Refinery Number:

Required: Refinery No. & Full Address in LOI / ICPO.

2. Storage Capacity:

Required: Storage Capacity (____________ million Barrel in LOI / ICPO.)

3. Processing Capacity:

Required: Refinery’s Processing Capacity in LOI / ICPO.

4. Processing Agreement:

If Buyer (L/C issuer) is not the end-refinery, please provide this agreement between

Buyer and Refinery that duly endorsed and notarized by a Notary Public.

5. Letter of Authority to procure and purchase REBCO:

Letter of Authorization: Letter of Authorization from Buyer and Refinery to Seller (XXXXX) that is duly endorsed and notarized by a Notary Public.