ES&SInternational Trading

TABLE OF CONTENTS

IntroductionRecognitionProductProductionDelivery PricingBasic Requirements

To begin with, ES&S comes from one of the largest family owned international trading companies in the U.S.  For generations, ES&S has specialized in elite international business trades with major countries in: China, Europe, South America, Africa, Israel, and the U.S.  (ES&S does not work with brokers but exclusively with refineries and buyers).

ES&S is a privately held international trade company and has successfully conducted worldwide trade operations for generations. Currently, the CEO of the company is Steven Shaul. He is in the 5th generation of this business and has a very personable strategy of working. Among his many honors and achievements, Mr. Shaul has been appointed as Ambassador of Arkansas by the former President of the United States, Bill Clinton.

We have successfully established a permanent office in Russia which has successfully exported MAZAUT M-100 FUEL OIL to European countries for over 13 years. The strong knowledge and growth in our key export markets in Russia has left to a rapid increase in exports of MAZAUT M-100 FUEL OIL. Together, with the efficient work relationships, ES&S continues to excel in the international trade industry.

ES&S strives to be an oil trade industry leader respected throughout the world for the quality and capability of its people, the efficiency and extent of its operations and its rich tradition of honesty and integrity.

Continued Introduction…

Our organization has traditionally focused on the supply of MAZAUT M-100 FUEL OIL. We strive to attract to our company the most capable people possible. We maintain a work environment that permits their creativity and ingenuity, and the company then provides resources to maximize results.

We believe that for a company to succeed it must differentiate. We are quite selective in deciding with whom we do business with. We limit our service to those we feel can work effectively with as much determination as our company does.

ES&S' approach to international trade is extremely personable and interactive.  We recognize the importance of networking relationships with our business partners and feel it is important to be at the time and place where business takes off.   This efficiency plays a key role in ensuring macroeconomic stability and the stability of the currency board.

We believe that all the policies described are essential to achieve the objectives of our business and relationships. We constantly monitor developments of our projects closely and are committed to act decisively.

We enjoy a reputation as a company with high integrity and ethical behavior. We are a privately held company with a team of highly competent and motivated individuals capable of conducting successful operations with our business partners. We would like to ensure the relationship with ES&S to be very rewarding.

Sincerely, Steven ShaulCEO, ES&S International Trading

Steven Shaulrecognized asAmbassadorof the State

Letter of recognition from Director, Steven

Spielberg to Steven Shaul

Letter of recognition from

former U.S. President, Bill

Clinton thanking Steven Shaul

CLASSIC PRODUCT MAZUT

(M-100 GOST 10585-75 ) Description

1. Ash content, %,0.14 max.2. Mass fraction of sulphur (low sulphur residual oil), %,0.5 max.3. Temperature of the flash- in the closed crucible, *c,65 min.- in the open crucible, *c,110 min.4. Temperature of solidification, *c,25 max.5. Kinematics viscosity at 50*c,118 max.6. Water content, %,0.57. Mechanical impurities, %,0.1 max.8. Acidity, mg koh/100ml,5max.9. Alkalinity, nil10. Gross calorific value, kcal/KG/kj/KG,9200/41300 min.11. Density at 15.0 deg. C, KG/L,0.8900-0.920012. Hydrogen sulfide content (h2s), ppm,0.5 max.13. Carbon residual, %,7 max.14. Vanadium (v), ppm,23

15. Aluminium (al), ppm,516. Silicon (si), ppm,1217. Nickel (ni), ppm,4918. Asphaltenes M/M, %,3.619. Distillation @ 4 mm hgExtracted to 760 mm hgInitial boiling point, *c,2165% recovered, *c,25910% recovered, *c,31020% recovered, *c,35830% recovered, *c,44540% recovered, *c,50250% recovered, *c,53460% recovered, *c,53870% recovered, *c,54580% recovered, *c, --90% recovered, *c, --Final boiling point, *c,550Recovered vol, %,78Residue vol, %,22Total nitrogen M/M, %,0.19220. Sodium (na), ppm,15

POWER PRODUCTION OF OUR REFINERIES

With 13 years of experience of selling oil to CIS countries, ES&S International Trading is working with the leading oil companies in Russia.  Our refineries rank among the top Mazut refinery producers in Russia in terms of oil production levels. In the first quarter of 2007, one of our company's average daily crude oil productions stood at  1.7 million barrels. Production is supported by the refineries' enormous resource base. As of last year, our partners have proved, probable and possible oil and gas reserves amounted to more than 40 billion barrels of oil equivalent, among the highest for a publicly traded company worldwide.

The companies are involved in the exploration and production of oil & gas, production of petroleum products and petrochemicals, and marketing of these outputs. Most of the Company's exploration and production activity is located in Russia, and its main resource base is in Western Siberia. ES&S International Trading works with refineries located all throughout Russia, from Siberia to Kazan .

POWER PRODUCTION OF OUR REFINERIES continued…

Heavy Fuel Oil

A distinguishing feature of ES&S' International Trading companies are their continuous growth dynamics based upon high rates of production increase and a constant expansion of reserve capacity. The company's flexible, long-term development strategy is established on experience of many years and employing state-of-the-art technologies.

TRANSPORTATION

Transportation – 1) by railway in

cisterns to the border; DAF terms

– 2) by railway in cisterns to the seaport, then by tanker; CIF (Cost, Insurance & Freight with Linder Terms).

Logistic– Please bare in mind

that mazut 100 is considered:

1) heavy oil product, that is dirty oil product, meaning:

– a) the order of cisterns for transportation to the transport agent is done 3 weeks in advance;

– b) most of all storage facilities in the sea ports are reserved for the light oil products; the order of such facilities should be done also in advance.

2) combustible product, meaning: transportation costs are higher than for the usual kind of merchandise not requiring special means of transportation.

PRICING This kind of mazut is produced only from the low

sulphur raw oil. Origin country for this kind of mazut is only Russia. It is very limited volume of this mazut available for export from Russia because of the following reasons:

There is limited number of producers in Russia, who produce this kind of mazut. All of them are the big Russian oil companies, like Lukoil, Rossibneft, etc.

Majority half of the produced volume is sold on the domestic market of Russia and CIS (Commonwealth of Independent States).

Most of the volumes for export are sold according to the state quotes to the state companies abroad.

The remaining export volumes are sold by the daughter commercial organizations of the oil producers to the highest bidder.

Proceeding from the above, as at the moment the demand exceeds many time the supply on the market, the producers in Russia dictates the terms for the supply.

BASIC REQUIREMENTS for ES&S’ FCO on behalf of

our refineries and banks

In order for a smooth transaction on behalf of ES&S, the following basic requirements are:1. Export/Import License for

“heavy fuel oil” issued by the Government of China

2. Quota specified for Mazut Oil issued by the Government of China

3. Line of Credit of one month shipment