Oil has been one of the world\'s primary energy sources for a number of decades. In 2005, the consumption of oil accounted for approximately 36% of world energy consumption. Daily oil demand has increased from approximately 75.4 million barrels per day (\"bpd\") to 86.0 million bpd between 1999 and 2007 (a 1.7% compound annual growth rate (\"CAGR\")), primarily as a result of global economic growth. Current proven oil reserves were approximately 41 times larger than 2005 production levels, according to the BP

Statistical Review of World Energy June 2006, and tend to be located in regions far from major consuming countries, which contributes to tanker demand.

According to the International Energy Agency (IEA) (as of February 13, 2007) world oil demand will grow by 1.8% in 2007, on top of several years of strong growth, to average 86.0 million bpd. Some of the fastest demand growth in recent years has been recorded in China, India and the United States. However, an economic downturn may sharply reduce the demand for oil and refined petroleum products, and also potentially affect tanker demand. Long-term growth in oil demand may also be reduced by a switching away from oil and/or a drive for increased efficiency in the use of refined petroleum products as a result of environmental concerns and/or high oil prices.

The seaborne transportation of crude oil and refined petroleum products is a mature industry. The two main types of oil tanker operators are independent operators who charter out their vessels for voyage or time charter use and major oil companies (including state owned companies) that generally operate captive fleets.

The crude and products tanker industry has historically developed in a cyclical fashion. Oil tanker charter hire rates are very sensitive to changes in demand for and supply of vessel capacity. Decreases in demand or increases in supply of ships can reduce vessel earnings.

The Company has an agreement to purchase seven additional vessels from Capital Maritime comprised of four Ice Class 1A sister vessels that are scheduled for delivery in 2007 and three MR product tanker sister vessels that are scheduled for delivery in 2008, all of which will be under time or bareboat charters that commence at the time of delivery.

The Company expects that by the end of the third quarter of 2008, its contracted fleet will consist of 15 MR double-hull product tankers with an average age of approximately 1.3 years.

The Company’s current vessels and the vessels it has contracted to purchase are under medium to long-term time charters or bareboat charters to BP Shipping Limited, Morgan Stanley Capital Group Inc., and subsidiaries of Overseas Shipholding Group Inc.

Voyage expenses amounted to $248,000 for the year ended December 31, 2006.

For the year ended December 31, 2006, vessel operating expenses amounted to $3.1 million.

Depreciation of fixed assets amounted to $3.0 million for the year ended December 31, 2006.

Net income for the year ended December 31, 2006 amounted to $4.6 million.