(Canadian dollars unless stated otherwise)

This news release contains "forward-looking information and statements" within the meaning of applicable securities laws. For a full discussion of the forward-looking information and statements and the risks to which they are subject, see the "Forward-Looking Information and Statements Advisory" on page 6.

Precision Drilling Trust ("Precision" or the "Trust") announced today that net earnings for the first quarter of 2007 were $158 million, or $1.26 per diluted unit, representing a decrease of 29% compared to $224 million, or $1.79 per diluted unit, in the first quarter of 2006.

Revenue in the quarter was 23% lower than the prior year at $411 million with revenue in the Contract Drilling Services segment decreasing 27% and the Completion and Production Services segment decreasing 15%.

Precision's customer pricing generally held during the quarter but equipment utilization declined significantly from the year-ago period. Canadian drilling rig operating days were 29% lower than the record 16,694 in the first quarter of 2006 at 11,785 days while utilization declined from 80% to 54% year over year. Service rig operating hours declined 20% from the first quarter of 2006 to 132,411 and utilization decreased from 78% to 62%.

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- Revenues for the First Quarter Increased 25.7 Percent over Prior Year
- Diluted EPS for the First Quarter Increased by 16.0 Percent to $0.29, Compared to $0.25 in the First Quarter of the Prior Year.

RPC Inc. announced its unaudited results for the first quarter ended March 31, 2007. RPC provides a broad range of specialized oilfield services and equipment primarily to independent and major oilfield companies engaged in the exploration, production and development of oil and gas properties throughout the United States and in selected international markets.

For the quarter ended March 31, 2007, revenues increased 25.7 percent to $171,045,000 compared to $136,024,000 in the first quarter last year. Operating profit for the quarter was $43,985,000 compared to $39,517,000 in the prior year. Net income was $28,045,000 or $0.29 diluted earnings per share, compared to $24,900,000, or $0.25 diluted earnings per share last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 19.1 percent to $60,145,000 compared to $50,483,000 in the prior year.(1)

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RPC, Inc. announced today that its Board of Directors declared a regular quarterly cash dividend of $0.05 per share payable June 11, 2007 to common shareholders of record at the close of business on May 11, 2007.

RPC provides a broad range of specialized oilfield services and equipment primarily to independent and major oilfield companies engaged in the exploration, production and development of oil and gas properties throughout the United States, including the Gulf of Mexico, mid-continent, southwest and Rocky Mountain regions, and in selected international markets. RPC's investor website can be found at www.rpc.net.

For information about RPC, Inc., please contact:

Ben M. Palmer
Chief Financial Officer
404.321.2140
irdept@rpc.net

Jim Landers
Corporate Finance
404.321.2162
jlanders@rpc.net


Source: RPC, Inc.

Oil services provider Baker Hughes Inc. said Wednesday it anticipates full-year revenue for regions other than North America to climb between 19 percent and 20 percent compared with a year ago.

The regions include Latin America, Europe, Africa, the Middle East, Asia Pacific, Russia and the Caspian area.

The company sees its U.S. revenue increasing 7 percent over the prior year, assuming U.S. drilling activity for the rest of the year remains flat with the first quarter.

Capital spending is expected to be between $1 billion and $1.2 billion for the year 2007.

Boots & Coots International Well Control, Inc., the premier pressure control company for the oil and gas industry, will discuss 2007 first quarter results via a conference call and Webcast on Tuesday, May 8, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). Boots & Coots will release first quarter results after market close on May 7. A copy of the company's press release and any other financial information about the period to be presented will be available at the Investor Relations section of the company's Website.

The dial-in number for the call is 866-277-1184, passcode 'Boots & Coots'. To listen to the live Webcast, log on to www.boots-coots.com/investor/invest.htm and click on the 2007 First Quarter Earnings Webcast link. A replay of the Webcast will be available on the investor relations page of the company's Website within 24 hours of the call. The call will also be available for replay for 30 days by dialing 888-286-8010, passcode 97430813.

About Boots & Coots

Boots & Coots International Well Control, Inc., Houston, Texas, provides a suite of integrated pressure control services to onshore and offshore oil and gas exploration companies around the world. The Well Intervention segment consists of services that are designed to enhance production for oil and gas operators and reduce the number and severity of critical well events such as well fires, blowouts or other losses of control at the well. The scope of these services includes training, contingency planning, well plan reviews, audits, inspection services and engineering services offered through our Safeguard programs and services offered in conjunction with our WELLSURE® risk management program. This segment also includes services performed by hydraulic workover and snubbing units that are used to enhance production of oil and gas wells. The Response segment consists of personnel, equipment and services provided during an emergency response such as a critical well event or a hazardous material response. These services include snubbing and other workover services provided during a response.


Contact:

Boots & Coots International Well Control, Inc.
Jennifer Tweeton, 281-931-8884
jtweeton@boots-coots.com

Source: Boots & Coots International Well Control, Inc.

Baker Hughes Inc. on Wednesday reported net income for the first quarter ended March 31 of $374.7 million, or $1.17 per share, on revenue of $2.5 billion, compared with net income of $339.2 million, or 99 cents per share, on revenue of $2.1 billion for the same period in 2006.

The Houston-based oil and gas company said the increase stemmed from higher revenue from its projects in North America and continued growth in activity despite a seasonal decline in sales and activity in Russia.

"In North America, a colder-than-normal late-January and February has resulted in U.S. natural gas storage levels that, while higher than the recent five-year average, are lower than previously expected," said Chad Deaton, Baker Hughes chairman and chief executive officer. "U.S. gas-directed drilling activity appears to be sufficient to satisfy modest growth in natural gas demand in the short term but may be insufficient to offset decreases in imports from Canada and the decline in the productivity of reservoirs being developed over the longer term.

"The company's additions in North America have been tempered to more closely match our expectations for slower near-term growth and have resulted in improved margins. We will continue to monitor the North America market closely and will make additional adjustments, if necessary, while exercising care not to sacrifice our ability to respond to increased activity levels in the future."

Analysts polled by Thomson Financial expected Baker Hughes (NYSE: BHI - News) to have net income of $1.10 per share.

Published April 25, 2007 by the Houston Business Journal

Pennsylvania Mineral Group LLC, of Port Lavaca, Texas., is trying to acquire rights in at least six counties, including Wyoming, Susquehanna and Lycoming, group procurement manager Don Pruett said.

In the past two weeks, Wyoming County residents have received solicitation letters from the company that asks a property owner to fill out a hydrocarbon conveyance and to a provide a social security number.

The letter states that a company check with the amount offered for the oil or gas rights would be mailed within 30 days of receipt and confirmation of a signed hydrocarbon conveyance.

"We're hitting numerous counties, Pruett said. "The idea here is that we would get enough wells drilled, get profit."

He would not name the members of the group, but according to the Pennsylvania Department of State on Feb. 27, A. George Mason, Jr., of Lexington, Ky., registered the group.

Mason, an attorney, is on the executive committee of The Energy & Mineral Law Foundation in 2006-07.

Pennsylvania Mineral Group LLC wants to purchase indefinite rights to profits made during drilling. It does not plan to drill.

Pruett said that the group thinks that drilling for oil or gas would likely happen in Wyoming County at some point based on geologists' reports and the fact that oil and natural gas leasing groups are active in the region.

Wyoming County recorder of deeds Dennis Montross said that around four groups are researching property titles for oil and gas interests. Since October, 140 oil and gas leases have been recorded, he added.

Montross noted that once a property owner sells oil or gas rights, all royalties would go to the group.

According to the state Department of Environmental Protection, no one has drilled wells for oil in Wyoming County.

However, DEP spokesman Tom Rathbun said that natural gas drilling has become more common in Northeastern Pennsylvania in the last couple years, because of technological advances and because of the region's proximity to major population centers on the east coast.

"The best thing people can do is contact an attorney who is familiar with oil and gas rights," he added.

For more information about oil and gas interests go to, www.dep.state.pa.us/dep/deputate/minres/OILGAS/oilgas.htm.

Integrated Environmental Technologies Signs Initial-Terms Agreement with Subsidiary of Benchmark Performance Group for Exclusive Distribution Rights in the Oil and Gas Industry.

Integrated Environmental Technologies, Ltd. (OTCBB:IEVM - News) announced today that it's wholly-owned subsidiary, I.E.T., Inc., has entered into an exclusive agreement for its proprietary EcaFlo® devices and EcaFlo® fluids with Benchmark Energy Products, L.P. (Houston, Texas), one of the world's leading oil and gas industry specialty chemical and service providers. IET has delivered an EcaFlo® Model C-102 to Benchmark for lab testing as a part of Benchmark's first order with IET for a series of EcaFlo® Model C-104 units. Benchmark, which has been expanding its menu of environmentally-responsible products for the pressure pumping services industry, will market EcaFlo® solutions as biocides for treating frac water to retard the growth of non-public health microorganisms and protect fracturing fluids, polymers, and gels without the use of hazardous chemicals and to treat produced waters.

IET's EcaFlo® equipment produces two types of environmentally-responsible, cost effective solutions: EcaFlo® Anolyte, a broad-spectrum, non-hazardous, neutral pH, "natural" germicidal agent used to manage all types of bacteria, fungi, and microorganisms, and Catholyte, an anti-oxidizing, "green" solution used as a degreaser or detergent.

Wayne Kinsey, President and CEO of Benchmark Performance Group, Inc. said, "Both Benchmark and IET recognize the growing importance of cost-effective, environmentally-responsible methods for controlling unwanted microorganisms in the waters that are used and produced in the process of drilling and treating oil and gas wells. We've been moving all of our fracturing fluid additives 'green' for several years now, and with EcaFlo® solutions we have the opportunity to become not just a supporter, but the leader of the oil and gas industry's movement to protect and conserve a precious natural resource - water. IET's Anolyte product will allow us (Benchmark) to offer our customers a totally new, cost-efficient, environmentally-friendly way to treat the 'make-up waters' used in fracturing fluids so they become virtually bacteria-free, making the fluids more effective down-hole. Perhaps more significantly, Anolyte is a powerful, non-hazardous biocide that can be used to treat the billions of gallons of water produced along with the oil and gas. By treating those produced waters to effectively eliminate all bacteria, they can be recovered and reused in new fracturing applications, significantly reducing both the need for costly 'waste water' disposal and, more importantly, the need for 'new' clean water. It's actually a cradle to cradle way to recycle the water. It's a technology that not only makes economic sense, but also has tremendous environmental benefits - two things we're all looking for."

William Prince, President and CEO of Integrated Environmental Technologies, said, "Continuing to build upon our emerging relationship with Benchmark, a leading provider of specialty chemicals in the oil and gas industry, will allow us to greatly further the awareness of EcaFlo® solutions worldwide while we receive sustaining technology fees from this 'partner' as they (Benchmark) sell our EcaFlo® fluids." Prince added, "To be associated with such a world-class company as Benchmark is a great compliment to IET. We will continue to work hard to move ahead together with Benchmark in this industry, so that this alternative to many hazardous chemicals may become the industry standard."

About Benchmark Performance Group: Benchmark is a manufacturer and supplier of, among other things, specialty chemicals, compounds, and additives developed for industrial and oilfield applications, including, but not limited to, proprietary cross-linkers, polymers, polymer slurries, and other fluid additives used in oil and gas well cementing, stimulation, and production fluids. www.benchmark-research.com

Forward-Looking Statements: The statements in this press release regarding the sale of EcaFlo® equipment and/or any further agreements with Benchmark Performance Group, Inc. and/or Benchmark Energy Products, LP., future opportunities and any other effect, result, or aspect of the agreement and any other statements, which are not historical facts, are forward-looking statements. Such statements involve risks and uncertainties, including, but not limited to, costs and difficulties related to the integration of EcaFlo® fluids into Benchmark Performance Group's services, actual revenues to be derived as a result of any current or pending agreement, applicability of IEVM's technology, costs, delays, and any other difficulties related to IEVM's business plan, risks and effects of legal and administrative proceedings and governmental regulation, future financial and operational results, general economic conditions, and the ability to manage and continue growth. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. IEVM undertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

For more information on the IET's products, please visit: www.ietusa.net

For more information on IEVM's Investor Relations, please visit: www.ietltd.net

MULTIMEDIA AVAILABLE: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=5386132


Contact:

Integrated Environmental Technologies, Ltd.
William E. Prince, President and CEO,
843-390-2500 or 843-390-3900 (fax);
president@ietltd.net

Source: Integrated Environmental Technologies, Ltd

Company Reaffirms 2007 Guidance; Initiates 2008 Guidance.

Energen Corporation (NYSE: EGN - News) announced at today's Annual Meeting of Shareholders that its 19 percent increase in year-over-year first quarter net income indicates that the diversified energy company is on track to achieve its sixth consecutive year of record earnings in 2007. Energen's net income in the first quarter of 2007 totaled $103.9 million, or $1.44 per diluted share.

"We are very pleased with the results we are generating, and we are excited about our prospects for the future," Mike Warren, Energen's chairman and chief executive officer, told shareholders at the energy company's Birmingham headquarters.

"By accelerating the development of our proved undeveloped reserves and our probable and possible inventory beginning this year, we believe we can achieve organic production growth in 2008 of approximately 3 percent. In 2009, we could well see production in excess of 100 billion cubic feet equivalent.

"Meanwhile, we continue to build our acreage position in Alabama in anticipation of exploring our state's extensive shale potential," Warren added.

In other developments announced today:

* Energen reaffirmed its 2007 earnings guidance range of $3.80 - $4.20 per diluted share.
* Energen initiated 2008 earnings guidance with a range of $3.60 - $4.00 per diluted share, reflecting the potential impact of lower realized commodity prices partially offset by increased production.
* Energen's oil and gas subsidiary, Energen Resources Corporation, has increased its net lease position in Alabama shales to approximately 180,000 acres.
* Energen Resources' review of its unproved reserve inventory again supported 1.9 trillion cubic feet equivalent (Tcfe) of probable and possible reserves.

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Executives
Rich Weber - President and CEO
Matt Jones - CFO

Analysts
Bill Moyer

Presentation
Bill Moyer

If everybody could take a seat, we will go ahead and get started. It's a pleasure for me to announce and introduce Rich Weber, who is President and CEO of Atlas Energy Resources. He will be presenting today along with his colleagues and they will be in break room after directly following this presentation. So, please welcome Rich.

Rich Weber

Thank you very much. We're pleased to be here at the IPAA conference. We're a new company. We just went public back in December, but obviously you are probably all familiar with our affiliates, Atlas America, Inc. and Atlas Pipeline Partners.

We'll start with our investment highlights. Our mission at Atlas Energy Resources is to generate predictable tax-advantage distributions through our unit holders and to grow our distributions per unit while maintaining our low risk profile.

Our distributions are protected by three basic attributes. We drill almost all of our wells through syndicated drilling programs. These programs generate substantial upfront and ongoing fees and we get a carried interest in these programs. And as a result, we're able to enhance our rates of return on capital, while lowering the risks of our cash flows.

Secondly, almost all of our activities, all of our activities I should say are in the Appalachian Basin, where the drilling is low risk, 98% of the wells are drilled commercially successful, and we create long-lived natural gas reserves. And lastly, we aggressively hedge our production to minimize our exposure to commodity risk.

At the same time, we intend to create unit price appreciation by growing our distributions per unit and we really see three ways that we are going to be able to do that. First of all, we want to continue our expansion of our investment programs, which I will speak to in a minute. This is something that we have been able to do consistently over the last several years and we have been able to grow our company organically through the expansion of our programs.

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Quantum Energy Partners IV, LP and affiliates ("Quantum") today announced that Quantum, Wayne Greenwalt ("Greenwalt"), Jerry Crews ("Crews") and fellow officers have formed EnergyQuest II, LLC ("EnergyQuest II" or the "Company") to acquire and exploit oil and gas properties primarily along the Gulf Coast of Texas and Louisiana, a region in which the Company's management team has extensive operating experience. EnergyQuest II will be led by Greenwalt and Crews, who have worked together since 2004. Prior to forming the Company, Greenwalt and Crews built EnergyQuest Resources, LP, a highly successful portfolio company of Quantum Energy Partners III, LP.

EnergyQuest II will focus on acquiring oil and natural gas properties with an enterprise value ranging from $25 million to $250 million and which contain existing production with upside re-completion potential or development drilling opportunities. Initial equity commitments from Quantum and the management team are in excess of $80 million with the option for additional equity infusions as required. Syndicated bank debt in addition to the equity commitments will enable EnergyQuest II to target and expeditiously close investment opportunities. EnergyQuest II's office is located at 15425 North Freeway, Suite 230, Houston, TX 77090. For more information on EnergyQuest II, please contact Wayne Greenwalt or Jerry Crews at (281) 875-6200.

Founded in 1998, Quantum is an investment firm specializing in the energy industry with over $3.2 billion in capital under management, of which $2.0 billion is in its family of private equity funds and $1.2 billion is in its direct property acquisition fund, Quantum Resources. Quantum primarily targets investments in the oil & gas sector, while also considering opportunities in the midstream, oil field service, coal, power, and alternative energy sectors. To learn more about partnering with Quantum Energy Partners, please contact either S. Wil VanLoh, Jr. or Alan L. Smith at (713) 225-4800 or visit Quantum's website at www.quantumep.com.


Contact:

Contact:
Wayne Greenwalt
(281) 875-6200


Source: Quantum Energy Partners

Oil prices inched up Wednesday ahead of the release of a weekly U.S. petroleum supply snapshot expected to show that domestic crude stocks fell and gasoline inventories rose.

Light, sweet crude for June delivery rose 10 cents to $64.68 in Asian electronic trading on the New York Mercantile Exchange by mid-afternoon in Singapore. The contract on Tuesday fell $1.31 to settle at $64.58 a barrel.

Brent crude for June delivery gained 28 cents to $67.44 a barrel on the ICE Futures exchange in London.

Traders are also anticipating the U.S.
Department of Energy supply report to show that crude oil inventories fell by 1.2 million barrels on average last week, according to a Dow Jones Newswires survey of analyst estimates.

Gasoline stockpiles will likely increase by about 200,000 barrels and distillate stockpiles, which include heating oil and diesel fuel, are seen growing by 400,000 barrels, the survey showed.

Nymex crude oil rose $1.78 to $65.89 a barrel on Monday on fears that escalating violence after a presidential election in Nigeria — Africa's largest producer and a main oil supplier to the United States — could interrupt supplies.

The governing party candidate was declared the landslide winner of Nigeria's deeply flawed presidential elections Monday as the runner-up rejected the results, setting the stage for greater strife.

Rising violence since early 2006 in the unruly southern region where crude is pumped has cut Nigeria's daily production by about one quarter and sent global crude prices higher.

Heating oil futures rose by 0.20 cent to $1.8480 a gallon, while natural gas prices climbed 3.7 cents to $7.635 per 1,000 cubic feet.

Egypt plans to hike its oil output by 100,000 barrels per day to 800,000 bpd in 2008, the petroleum ministry said Wednesday.

"A programme was set up for developing some recent discoveries in the Gulf of Suez and the western Sahara, with the aim of hiking production by 100,000 bpd," a statement said.

"These new discoveries will be announced soon," ministry spokesman Hamdi Abdel Aziz told AFP, adding that Egypt's current output stood at about 700,000 bpd.

Production in the Gulf of Suez, which accounts for about 65 percent of Egypt's total, is expected to increase by 60,000 bpd, the ministry said. Output from the western Sahara fields is due to grow by 40,000 bpd.

Indian oil group ONGC Videsh announced earlier this month they had struck an oil field in the Gulf of Suez believed to hold at least 200 million barrels.

The petroleum ministry has recently offered a number of incentives to boost the oil sector, which has remained in the shadow of the lucrative gas sector in recent years.

Production has declined from its peak levels of close to one million bpd in the mid-1990s, but Egypt has made just enough discoveries to meet domestic consumption without having to import crude.

Egypt is not a member of the Organisation of Petroleum Exporting Countries but has observer status at the cartel.

Refineries also show surprise drop in capacity; crude supplies rise.

Oil prices remained higher Wednesday after government said supplies of crude oil showed a surprise gain but gasoline stocks and refinery runs declined.

U.S. light crude for June delivery rose 55 cents to $65.13 a barrel on the New York Mercantile Exchange. Oil traded up 44 cents just prior to the report's release.

In its weekly inventory report, the Energy Information Administration said crude stocks rose unexpectedly by 2.1 barrels last week. Analysts were looking for a drop of 1 million barrels, according to Reuters.

But gasoline supplies, closely watched ahead of the summer driving season and relatively low as of late, fell by 2.8 million barrels. Analysts were looking for a decline of 400,000 barrels.

EIA characterized gasoline stocks, which have fallen 13 percent since early February, as being "well below the lower end of the average range."

The gasoline situation doesn't look likely to improve soon.

The report said refineries, operating at below normal capacity over the last several weeks due to fires and other problems, ran at 87.8 percent capacity last week, down from 90.4 percent the week prior and lower than expected.

And gasoline demand remains strong. EIA said demand over the last four weeks rose by 2.3 percent. The average rate of growth is 1.5 percent.

"It's a one-two punch," said John Kilduff, an energy analyst at Man Financial in New York. "It's very troubling on the gasoline side. We just can't keep up, given the strong demand."

Distillates, used to make heating oil and diesel fuel, were unchanged. Analysts were looking for an increase of 400,000 barrels.

Crude prices have traded in a wide band for the last year, hitting an all time non-inflation adjusted trading high of $78.40 last July, then briefly falling below $50 a barrel at the start of the year.

But oil prices have rebounded and are now trading at the high end of their multi-month range of $55 to $65 a barrel, largely due to geopolitical tensions with Iran and uncertainty in the Nigerian elections.

Crude has also risen in tandem with gasoline, pushed higher as refinery problems crimped gasoline supplies ahead of the summer driving season.

In Nigeria, the ruling party won an election last weekend, but the vote was widely seen as rigged.

That sparked concern among traders that violence could worsen in the oil-rich nation, whose crude is of high quality and easily made into gasoline.

Nigeria has lost 600,000 barrels per day (bpd) in oil production since the rebel Movement for the Emancipation of the Niger Delta (MEND) attacked oilfields in the western Delta in February 2006, according to Reuters.

But Nigerian officials say oilfields pumping more than half that volume will be restarted by the end of May.

The dispute between the West and OPEC producer Iran over its nuclear program is the other main geopolitical sore spot supporting oil prices.

The European Union and Tehran are to discuss Wednesday whether the Islamic republic might be prepared to suspend nuclear activity after more sanctions were imposed, Reuters reported. Iran has vowed not to retreat despite world pressure.

Ethiopia blamed its longtime enemy Eritrea Wednesday for an attack in eastern Ethiopia on a Chinese-owned oil exploration field that killed 74 people. Eritrea issued a swift, angry denial.

In addition to those killed, at least six Chinese workers and a number of Ethiopians were taken hostage during Tuesday's dawn attack, for which the rebel Ogaden National Liberation Front claimed responsibility. The secessionist group formed from Ethiopia's minority Somalis has been linked to neighboring Eritrea.

"Hand-in-glove with the Eritrean government, which hates to see Ethiopia's development, the terrorist forces in the region have acted out this horrendous act of terror," Ethiopia's Foreign Ministry stated on its Web site Wednesday.

It called on the
United Nations to take action against Eritrea.

Eritrean Information Minister Ali Abdu denied the allegation, saying it was "a habitual nonsense statement" from Ethiopia.

Relations between Ethiopia and Eritrea have been strained since Eritrea gained independence from the Addis Ababa government in 1993 following a 30-year guerrilla war. The two countries fought a two-year border war that ended in 2000.

Recently, the two nations have traded accusations over involvement in Somalia. Eritrea is accused of backing an increasingly violent Islamic insurgency fighting Ethiopian troops supporting the Somali government.

Tuesday's attackers "were wearing Eritrean military uniforms," Abdullahi Hassan, president of the region in Ethiopia where the attack occurred, told The Associated Press. "We are sure. They were speaking the Eritrean language."

Hassan said the area of the attack is now under control. The attack took place early Tuesday in Abole, a small town 310 miles east of Addis Ababa in Somali Regional State and close to the Somali border.

Xu Shuang, the general manager of Zhongyuan Petroleum Exploration Bureau's Ethiopia operation, said nine Chinese oil workers and 65 locals were killed and that seven Chinese workers were kidnapped. But the group said it is only holding six Chinese workers.

China condemned the attack, the first against a foreign company in the Horn of Africa nation.

The bodies of the nine slain Chinese workers were being flown to the Ethiopian capital on Wednesday, before being repatriated to China, said Sun Qing, a Chinese embassy spokeswoman. She said negotiations were under way to win the release of the hostages and that all Chinese staff were being evacuated. She had no detail on whether the attackers were wearing Eritrean uniforms.

Ethiopian troops continued their search Wednesday for the rebel group and the hostages.

Tuesday's attack by more than 200 fighters lasted about an hour, and followed a warning the rebel group made last year against any investment in eastern Ethiopia's Ogaden area. The group said in a second statement posted on its Web site that 400 Ethiopian troops were killed or wounded in the attack. It said the Chinese fatalities were caused by explosions caused by munitions during the battle.

The statement added that the oil exploration field was attacked because ethnic Somalis were driven from their land by Ethiopian troops to make way for the facility.

In recent years, the Ogaden National Liberation Front has only made occasional hit-and-run attacks against government troops, making Tuesday's attack its most significant one. It has fought for the secession of the Ogaden region — an area the size of Britain with 4 million people — since the early 1990s.

The volatile Somali Regional State, as the Ogaden is known, "is not a safe environment for any oil exploration to occur. We urge all international oil companies to refrain from entering into agreements with the Ethiopian government," the front said in its claim of responsibility sent to the AP.

The Ogaden National Liberation Front described Tuesday's attack as "military operations against units of the Ethiopian armed forces guarding an oil exploration site," in the east of the country.

It did not give any details of casualties, but said they had "wiped out" three Ethiopian military units.

The official Xinhua news agency reported that the attackers fought 100 Ethiopian soldiers protecting the facility in a 50-minute gunbattle.

Ethiopia is not an oil-producing country. But companies such as the Chinese one and Malaysia's state-owned oil giant Petronas have signed exploration deals.

Xinhua said Zhongyuan Petroleum Exploration Bureau had 157 Chinese and Ethiopian workers at the facility. The company is a division of the giant state-owned China Petroleum and Chemical Corp. that began its operations in Ethiopia in May 2004, according to its Web site. It began work in the volatile Somali Regional State last year.

Oil prices rose Wednesday after the government's weekly U.S. petroleum supply report showed a large and unexpected decline in gasoline stockpiles.

Traders overlooked a surprising buildup in crude oil inventories.

"This is indeed a bearish report for crude oil," said Tim Evans, energy analyst at Citigroup Global Markets. "But right now, (traders) don't care nearly as much about crude oil as we do about gas."

The report by the U.S.
Department of Energy's Energy Information Administration showed that crude oil inventories rose by 2.1 million barrels in the week ending Friday to 334.5 million barrels. Traders had expected crude oil inventories to fall by 1.2 million barrels on average, according to a Dow Jones Newswires survey of analyst estimates.

On the other hand, gasoline inventories fell by 2.8 million barrels. Analysts had expected a 200,000-barrel increase in gasoline inventories. Distillate stockpiles, which include heating oil and diesel fuel, remained flat as heating oil inventories fell while diesel stockpiles rose.

The report also showed that refinery utilitzation fell 2.6 percent.

Light, sweet crude for June delivery rose 56 cents to $65.14 in late morning trading on the New York Mercantile Exchange. The contract fell $1.31 a barrel on Tuesday.

Brent crude for June delivery gained 96 cents to $68.12 a barrel on the ICE Futures exchange in London.

Gasoline futures, which one would expect to rise strongly on the report, gained 3.26 cents to $2.2415 a gallon.

"So far, I'm not impressed with the size of the (gasoline) rally," Evans said, suggesting gasoline futures prices could rise further. "This is a severe decline in gasoline inventories."

"On any given day, markets still have the capacity to defy and baffle us," wrote Man Energy analyst Edward Meir in a research note issued before the government's report. Meir suggested that trading on energy markets will be volatile this week regardless of what the EIA report showed.

Evans and other analysts worry whether there is enough gasoline to meet summer driving demand.

"Market participants are concerned that, even though U.S. refineries are increasing production, they will not be able to fully satisfy demand ahead of the busy summer driving season," said Michael Davies, an oil analyst at Sucden in London.

"We're basically at the lowest level since Oct. 7, 2005," Evans said of gasoline inventories. "We've got this real scary low level of inventory."

But, he added, "(Refiners) do have an impressive track record of catching up on supply at the last moment."

In other Nymex trading, heating oil futures rose 2.94 cents to $1.8754 a gallon, while natural gas prices fell 2.1 cents to $7.577 per 1,000 cubic feet.

BHP Billiton Ltd./Plc (BLT.L) said on Tuesday it was pushing for record output levels for many of its minerals this year, after reporting a surge in output in the third quarter to meet rising global demand.

"It's no surprise that BHP and others are running hard," said Martin Petch, an analyst with Commonwealth Securities in Sydney. "Demand for things like nickel, copper, iron ore and other metals going forward for a least the next year or so is looking very strong," Petch said.

BHP, which has earmarked $17.5 billon for 29 new projects, said copper output leapt 22 percent to 357,600 tonnes in the March quarter, helped by added production from the giant Escondida and Spence mine projects in Chile, where new capacity has been installed.

Sweeping industrial modernisation and urban growth in China has led the boom, especially in raw steel making materials such as iron ore, metallurgical coal and nickel.

BHP and rivals have been producing as much as possible to meet the demand, but additional supplies have done little to soften prices for metals, many of which are at record or near-record levels.

Copper is up in price by nearly a third or $2,000 a tonne so far this year. Stocks of copper in London Metal Exchange warehouses are down more than 20 percent since early February and currently stand at 168,150 tonnes, covering less than four days of global consumption.

In China alone, refined copper imports in March hit their highest level ever, with total imports exceeding 200,000 tonnes for the first time, data from China's customs bureau figures showed Monday.

Rio Tinto Ltd./Plc (RIO.L), second in size to BHP and a partner in Escondida, said last week its quarterly copper yield rose 19 percent.

BHP's base metals division, chiefly copper, accounted for almost a third of last year's overall earnings before interest and tax of $15.3 billion. That figure could rise to $16.38 billion in fiscal 2007, according to ABN Amro.

NICKEL OUTPUT UP

BHP's nickel production from mines in Colombia and Australia rose 14 percent to 45,800 tonnes, though the additional supply has failed to quell global supply concerns that have yanked the stainless steel alloy to record-high prices nearing $50,000 a tonne.

Inventories of nickel held in LME warehouses -- historically the last stop for metals buyers -- have dwindled to little more than 4,000 tonnes, one-seventh the 52-week peak.

Other nickel producers, including Brazil's CVRD , Sherritt International Corp. , Xstrata Plc. (XTA.L) and Jubilee Mines N.L., also are racing to maximise operations.

BHP for its part is spending $2.2 billion to dig a new mine and build processing facilities to churn out an additional 50,000 tonnes a year in Ravensthorpe, Australia, starting in about a year.

Aluminium production crept 1 percent higher to 331,000 tonnes, while oil and condensate production in the quarter slipped 2 percent to 10.67 million barrels.

Iron ore production increased 8 percent to 22.88 million tonnes despite interruptions to mining in Australia caused by cyclones.

Metallurgical coal production was up 7 percent in the third quarter, the company said.

Lead output dropped 8 percent to 62,974 tonnes in the last quarter.

Alumina output rose 1 percent while manganese ore was up 18 percent and manganese alloy rose 14 percent, the company said.

BHP's Australia-listed stock, which gained around 17 percent in the third quarter, was 0.5 percent higher at

A$30.15.

Rio Tinto was flat at A$83.95 in a mildly weaker broader market.

BHP Billiton Ltd., the world's biggest mining company, said third-quarter copper, iron ore and nickel output rose, taking it toward record annual production of its biggest mineral products.

Copper output climbed 22 percent to 357,600 tons in the three months ended March 31, from 293,600 tons a year earlier, Melbourne-based BHP said today in a statement. Petroleum product output rose 6 percent, making the first increase in six quarters as it sold more natural gas.

Production of seven of BHP's 19 commodities soared to all time highs in the first nine months as the price of iron ore climbed to a record and copper nears a high on rising imports by China. Iron ore output would have been higher if not for cyclones that swept Western Australia, BHP said today.

``March is a seasonally weak quarter due to the weather predominantly, and the report was largely in line with our expectations,'' UBS AG analyst Glyn Lawcock said in a note to clients. ``Oil and gas were generally ahead of our expectations.''

Shares of BHP Billiton rose as much as 35 cents, or 1.2 percent, to A$30.35 and traded at A$30.19 at 12:26 p.m. in Sydney. They have risen 19 percent this year, more than double the 9.1 percent gain in the benchmark S&P/ASX 200 Index.

Copper and base metals were BHP's largest profit contributor in the six months ended Dec. 31. They were followed by the petroleum unit. Stainless steel materials, which includes nickel and cobalt, was the third-largest contributor, and iron ore the fourth-largest.

Magma Restart

China's economy grew 11.1 percent in the first quarter from a year ago, beating analysts' expectations. The world's most populous nation more than doubled imports of copper in March to meet demand from the construction industry, according to data by the Beijing-based customs office on April 23.

``Strong customer demand,'' had led to a record nine months production of natural gas, alumina, aluminum, copper, nickel, iron ore and manganese, the company said today.

BHP is spending ``less than $100 million'' to restart the Magma copper project in the U.S., spokeswoman Samantha Evans said today. The project, idle since 1998, will restart in the fourth quarter of 2007, and produce 70,000 tons of contained- copper-in-concentrate a year for four-and-a-half years, she said.

``We're so short of concentrate in the market that they are taking back to the market relatively high-cost production,'' said Peter Rudd, research manager at Carroll, Pike & Piercy Pty, which advises investors managing A$500 million ($413 million).

Steelmaking Materials

Production of iron ore, used to make steel, rose 8 percent to 22.9 million tons, from 21.1 million tons a year ago, for the three months ended March 31. It fell 10 percent from the previous quarter after cyclones swept Western Australia where its mines are located.

Coking coal output climbed 7 percent to 9.1 million tons from 8.5 million tons a year ago. Nickel production advanced 14 percent to 45,800 tons.

``There was a good copper and coking coal production, though iron ore was lower than expectations,'' said Rob Clifford, an analyst at ABN Amro Holding NV, in Melbourne.

BHP is the world's largest exporter of coal for the steel industry and the third-biggest iron ore seller. It is also Australia's largest oil and gas producer.

The company, which last quarter raised expansion costs for two projects, said its Neptune and Stybarrow oil and gas projects are reviewing budgets.

Neptune, in the Gulf of Mexico, has a current budget of $300 million for BHP's 35 percent stake. Stybarrow, in Australia, is 50 percent owned by BHP and was to cost it $300 million.

To contact the reporter on this story: Tan Hwee Ann in Melbourne at hatan@bloomberg.net

The company has "not been notified by any ministerial body" in Russia that regulators will be probing the way it books reserves, said a spokesman for Victoria Oil, the developer of the West Medvezhye gas field in Siberia.

He gave the comment after Oleg Mitvol, deputy head of the Russian environmental watchdog Rosprirodnadzor, accused Imperial Energy PLC last week of inflating its reserves and failing to meet its license obligations.

Imperial was just one of the several energy and mining companies which Mitvol was reportedly targeting in his reserves investigation. According to the Russian press, Victoria Oil and Sibir Energy PLC were in the list.

The resource estimates of both Imperial and Victoria Oil are assessed by independent auditor DeGolyer & MacNaughton (D&M).

The Victoria Oil spokesman described the press reports as "media speculation." But should they eventually turn out to be true, the company will "cooperate (with the Russian authorities) to the fullest" extent possible, he said.

Sibir Energy said on Friday that the reserves estimates at its Siberian fields were calculated based on Russia's own standards.

"Sibir would like to state for the record that the reserves figures reported by the company are the Russian standard reserves as reported by the Russian State Committee on Reserves," the company said in a statement.

"For the avoidance of doubt, Sibir's reserves and those of the Russian State Committee on Reserves are one and the same," it said.

D&M uses the internationally-accepted Society of Petroleum Engineers standards, which are different from the methods used by Russian regulators.

At 11.55 am, Imperial Energy shares were down over 8 pct at 1,210 pence, while Victoria Oil shares were off 2 pct at 46-3/4 pence. Sibir Energy shares were up over a penny at 456-3/4 pence.

monicca.egoy@thomson.com mbe/ejp COPYRIGHT Copyright AFX News Limited 2007. All rights reserved.

The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.

Vedanta Resources Plc agreed to buy Mitsui & Co.'s entire stake in Indian iron-ore exporter Sesa Goa Ltd. for $981 million, trouncing rivals including Arcelor Mittal to secure supplies of the steel-making raw material.

Vedanta, the biggest producer of copper and zinc in India, will pay 2,036 rupees ($49) per share for a 51 percent stake, the London-based company said today. Vedanta will offer to buy a further 20 percent for at least the same price. Adviser Nomura Holdings Inc. will lend $1.1 billion to fund the takeover.

Chairman Anil Agarwal beat two fellow Indian billionaires, Lakshmi Mittal and Kumar Mangalam Birla, to secure supplies of iron ore as demand from China drives iron-ore prices to records. Anglo American Plc yesterday agreed to pay $1.5 billion for about half of a Brazilian iron-ore project.

``The name of the game is procurement of raw materials,'' Michael Skinner, a London-based analyst at Standard Bank Plc, said by phone from Dubai. ``Vedanta will look for an integrated model and wants to start right at the beginning. Everybody is looking for raw materials.''

Competition for Sesa Goa drove its shares to a record 2,000 rupees on Jan. 29. Vedanta is paying 31 percent more than the stock's six-month daily average to get its first iron ore mine in India, where demand for steel is growing at almost twice the global average fuelled by economic growth of more than 8 percent.

Sesa Goa shares gained as much as 9 percent to 1,900 rupees today and traded at 1,708 rupees at 10:10 a.m. Mumbai time.

`Pure Metal'

Sesa Goa may help shield Vedanta's earnings from volatility in metal prices. Copper reached a record $8,800 a ton in May and fell 28 percent from the peak through Dec. 31, 2006. Prices have gained 26 percent this year. Zinc fell 27 percent between Jan. 1 and Feb. 2, before recovering 21 percent since. Iron ore prices, set in annual contracts, have risen to a record and could stay at highs till 2013, Credit Suisse said in an April 13 report.

``Vedanta probably wants to balance the volatility in its metals basket by adding iron ore,'' said Niraj Shah, an analyst at Prabhudas Lilladher Pvt., a Mumbai-based brokerage. ``It doesn't want to be a pure metals company.''

Baosteel Group Corp., China's biggest steelmaker, will need to buy 90 percent more iron ore a year by 2012 when it plans to more than double output. Baosteel, which used 42 million tons of ore in 2006, will need 80 million tons to meet the output target, Li Qingyu, chief executive of Shanghai-based Baosteel Trading Co., said in slides prepared for a conference in Beijing today.

Lakshmi Mittal, who plans to spend $9 billion on a venture in India, said Feb. 21 that he is considering bidding for the iron-ore miner. Aditya Birla Group's Essel Mining & Industries Ltd. had also bid for the iron-ore mining company.

Open Offer

Vedanta acquired all of Mitsui's Finsider International Ltd., which owns the holding. The company said 71 percent of Sesa Goa will cost $1.37 billion.

The offer to buy shares from investors will run for three months, the company said in a statement. Under Indian law, a company buying more than 20 percent of another company must make an offer to acquire a further 20 percent of its shares.

Chairman Agarwal will brief reporters today in Mumbai. He is the largest shareholder with 54 percent stake. Vedanta also operates plants in Zambia and Australia.

Founded in 1954, Sesa Goa has iron-ore mines in the states of Goa, Karnataka and Orissa, and sold 9.6 million tons in the year ended March 2006, according to its Web site.

Mitsui invested in October 1996. The company expects to get an after-tax gain of 50 billion yen ($422 million) from the sale, it said in a statement today.

Morgan Stanley advised Mitsui on the sale.

To contact the reporter on this story: Debarati Roy in Mumbai at droy5@bloomberg.net .

Andean American Mining Corp. Andean American Mining Corp. announced today that it has retained the services of CHF Investor Relations (Cavalcanti Hume Funfer Inc.) of Toronto and Calgary, Canada's longest established and one of its most respected IR firms.

John Huguet, Chairman and CEO, commented: "We are committed to proactively increasing and improving investor awareness of Andean American, in particular its dynamic resource interests and compelling growth potential. Having CHF Investor Relations become a part of our IR initiatives will contribute solidly to our interests."

Commencing immediately, subject to TSX Venture Exchange approval, CHF will provide investor relations and market-making services for a term of twelve (12) months. Upon successful completion of the contract on April 30, 2008, services may continue in the absence of written notice by either party on a month to month basis thereafter whereby termination would require three months' prior notice in writing.

CHF will receive a monthly fee of $7,500, plus approved disbursements. CHF will upon engagement, and subject to Board and regulatory approvals, receive a stock option package of 125,000 shares priced at CAD$0.75 per share and 200,000 shares priced at CAD$1.00, valid for three years. These non-assignable, non-transferable options are subject to the dictates of the Company Stock Option Plan and the usual vesting rules of the Exchange. In the event of termination of this agreement, any outstanding options would expire after 30 days, as dictated by the rules of the TSX Venture Exchange.

CHF's investor relations services are delivered in accordance with TSX Venture Exchange Policy 3.4.

About CHF Investor Relations

CHF Investor Relations, a proactive, results-driven firm, offers premium IR service to an international portfolio of client companies operating in a broad range of industries including mineral producers, mining exploration and development, high-tech, biotechnology, oil and gas and special situations. CHF provides comprehensive IR representation to the Canadian audience through their offices in Toronto and Calgary. For more information, please visit their website at www.chfir.com.

About Andean American Mining

Andean American Mining Corp. (TSX VENTURE:AAG - News; FRANKFURT:AQN - News) is an international mining and exploration company focused on growth both organically and through acquisitions. The Company is actively pursuing new targets of potential early stage gold and silver prospects in Peru and currently has three key assets: the 9,000 hectare Santa Rosa property, which is a producing open-pit mine; the Invicta gold-silver-copper pre-feasibility stage project; and 74% of Sinchao Metals Corp., owner of the Sinchao gold-silver-copper-zinc polymetallic mineralization project.


Contact:

Sheera Waisman
Andean American Mining Corp.
Director of Corporate Communications
(604) 681-6186 or Toll Free: 1-888-356-4784
(604) 681-3652 (FAX)
Email: IR@andeanamerican.com
Website: www.andeanamerican.com

Cathy Hume
CHF Investor Relations
CEO
(416) 868-1079 ext. 231
Email: cathy@chfir.com

Barry Leung
CHF Investor Relations
Broker Relations Account Manager
(416) 868-1079 ext. 247
Email: barry@chfir.com
Website: www.chfir.com

Source: Andean American Mining Corp.

The major stocks markets in Asia are trading in the negative territory on Tuesday, on concerns that rise in crude oil prices in the international markets might dampen the demand for most of the products in the region such as computers, cell phones and cars, and in turn, result in lower profits.

The stock markets in Australia, New Zealand, Japan, Singapore, Hong Kong and Indonesia are trading in the negative territory, while the markets in China, South Korea and Taiwan are trading in the positive territory with marginal gains over previous close.

The price of crude oil for June delivery rose by more than 2.5% to US$65.89 a barrel in New York.

Exporters and chemical companies led the decline in the Tokyo market, while the decision taken by Resmed, one of the leading producers of products for treatment of sleep disorders, to withdraw 300,000 of its products from the market, led the declines in the Australian market.

New Zealand market fell in the early trading on Tuesday, retreating from the near record level achieved the day before. The NZSX-50 index was down 13.15 points or 0.31% to 4188.49 at 10:20am. The NZX-50 index had closed on Monday at 4201.64, just 15 points short of the record of 4216.29 points reached on February 7.

The market leader Telecom fell 0.81% in the day's early trading. The second ranked share of the market, Fletcher Building, inched up 0.09%, while Contact Energy, another blue chip share of the market, eased 0.11%. Among the Australian companies listed in the New Zealand market Westpac Banking and ANZ Banking remained unchanged, while AMP dropped 0.74%. The brewer Lion Nathan gave up 0.10%, while the Australian telecommunication giant Telstra remained unchanged.

In the energy sector, TrustPower lost 0.61% as Vector stocks remained unchanged in the early business on Tuesday.

In the retail sector, Hellaby Holdings added 0.50%, while Hallenstein Glasson and Warehouse remained unchanged. Pumpkin Patch lost 0.70% as the jewellery retailer Michael Hill International remained unchanged.

Among other notable stocks, Fisher & Paykel Appliances slipped 1.11% as Fisher & Paykel Healthcare dropped 1.66%. In the building sector, Steel & Tube fell 2.27% as Nuplex remained unchanged.

New Zealand Oil & Gas dropped 2.02% as New Zealand Refining Company eased 0.15%. New Zealand Exchange Limited fell 0.81%. Ryman Healthcare dipped 0.84% as Rakon remained unchanged. Rubicon dropped 2.04% as PGG Wrightson gave up 1.78%.

Sky Network Television climbed 1.23% as Tourism Holdings dropped 1.87%. Calan Healthcare Properties remained unchanged as Cavalier Corporation lost 1.21%. Port of Tauranga and Skellerup Holdings remained unchanged, while Tower lost 0.88%. Air New Zealand fell 1.84% as Auckland International Airport lost 0.43%. Ebos, BIL International and ING Property Trust remained unchanged as Freightways dropped 1.18%. Sanford slipped 1.08%.

Infratil gave up 0.17%, while Kiwi Income Property Trust remained unchanged. Macquarie Goodman Property lost 0.65% as Mainfreight dropped 0.53%. Goodman Fielder and Property For Industry remained unchanged.

The stock market in Sydney, Australia is trading in the negative territory on Tuesday morning, led by ResMed after the company announced that it is planning to recall 300,000 of its devices used in sleep apnea treatment.

The share price of Bendigo Bank, one of the leading banks, also declined, after the Board rejected a takeover offer from Bank of Queensland for A$ 2.7 billion, stating that the price offered is too low.

The All Ordinaries Index is presently trading at 6,175.30, down 16.90 points, or 0.27%, while the S&P/ASX 200 Index is trading at 6,190.40, down 18.80 points, or 0.30%.

Resmed Inc., the second biggest producer of products for treating sleep disorders such as sleep apnea, has announced that plans to recall 300,000 of its products, on concerns that its products, mostly S8 flow generators, which provide steady oxygen supply to patients with the sleeping disorder, may short circuit. Following the news, the share price of Resmed declined sharply by as much as 13% to A$ 5.14 a share.

One of the leading banks in the country, Bendigo Bank, announced that its Board of Directors had rejected the takeover proposal from Bank of Queensland, which had offered to pay 0.748 shares of Bank of Queensland and A$ 5.50 cash for each share of Bank of Bendigo to the shareholders, stating that the offer was not in the best interests of its shareholders and did not provide sufficient value and certainty to the shareholders.

Following the rejection of the offer, the share price of Bank of Bendigo declined more than 4.5%.

Economic data released in the morning revealed that inflation increased less than expected, damping the prospect of a boost to interest rates next week. Following the economic data, banking stocks, which were trading in the negative territory prior to release of the economic data, rebounded and are trading in the positive territory.

While the share price of Commonwealth Bank rose by 59 cents to A$ 53.72, the share prices of ANZ Bank and National Australia Bank rose by 37 cents each to A$ 31.45 and A$ 44.11 respectively. The share price of Westpac rose by 32 cents to A$ 27.47.

Resource related stocks were also trading in the positive territory with marginal gains. The share price of BHP Billiton, the largest mining company in the world in terms of market value and production, rose by 34 cents to A$ 30.34, while the share price of rival company, Rio Tinto, rose by 54 cents to A$ 84.50.

The stock market in Tokyo, Japan is trading in the negative territory on Tuesday, led by chemical companies such as Sumitomo Chemical Co., on concerns that profit margins might squeeze since the rising material prices outpace the increase in product prices.

Many chemical companies find it difficult to increase their product prices while they have to shell out more for the raw materials.

Exporters also declined on concerns that recent surge in crude oil price in the international markets might dampen the demand in the world's largest economy and biggest overseas market for Japan, the US.

The benchmark Nikkei 225 Index is presently trading at 17,315.19, down 140.18 points, or 0.80%, while the broader TOPIX Index is trading at 1,692.41, down 13.22 points.

The US dollar is presently quoted at 118.40/44 yen, compared to previous closing in the range of 118.32/34 yen in Tokyo on Monday evening.

Chemical companies led the declined on concerns that the price of raw materials have been rising more with little or no increase in the corresponding product prices, resulting in shrinkage of profit margins.

The share price of Sumitomo Chemical, the third biggest producer of ethylene in Japan, declined more than 2.5%. The share price of Mitsui Chemicals, the third largest chemical company in the country, declined by more than 3%.

The price of crude oil for June delivery increased more than 2.5% to US$65.89 a barrel in overnight US market. Following the rise on crude oil prices, the share prices of Oil explorers gained on expectations that higher oil prices will boost their earnings. The share price of Inpex, the biggest oil explorer in the country, advanced more than 2% while the share price of Japan Petroleum Exploration Co. rose about 1.5%.

Exporters declined on concerns that rise in crude oil prices might dampen the demand in the world's largest economy and biggest overseas destination for export of products and services.

The share price of Sony, the world's largest producer of video-game players, declined by 0.5%, while the share price of Toyota Motor Corp. the second largest producer of automobiles in the world, declined by more than 1%. The share price of Honda Motor Co., the second largest carmaker in the country, declined more than 2%.

Oil and gas stocks had a great run to the upside following the correction low in earlier March. The Amex Oil Index (XOI) rallied nearly 180 points from its March low of 1,100 to its most recent high of 1,280. The Amex Natural Gas Index (XNG) was likewise bullish from March through late April and rallied from its correction trough of 440 to its latest high of 500.

How much energy is left in the oil/gas stock sector after this extraordinary rally? To answer that question we turn to the internal momentum indicator series known as OILMO.

Earlier last month I pointed out that the dominant interim momentum indicator for the oil stocks would turn up strongly into March and April and would most likely allow for some impressive gains to be made in the leading oil stocks. This turned out to be the case as 120-day oil stock internal momentum reversed in early March and roared ahead into April, allowing the XOI to rally. This week, however, witnessed the peaking of the 120-day oil stock momentum indicator (OILMO). Based on my rate of change calculations the peak has most likely been seen for 120-day momentum for some time.

It’s somewhat sad that the most vigorous part of the rally is ending (or so it appears); however, the trend is still technically bullish and there appears to be enough lingering upward bias to not only keep the sector afloat near the recent highs for a while longer but also to allow a few stocks to make higher highs, especially those that are in a relative strength position versus the XOI and XNG indices. There may even be a few turnaround attempts among the lower-priced stocks, which we’ll look at in coming reports.

Meanwhile, the 5-day, 10-day and 20-day price oscillators for the XNG index have all pulled back from an “overbought” extreme to a more normal reading. This takes some of the pressure off the gas stocks in the immediate term. Based on my rate of change calculations the 20-day price oscillator for the XNG will remain neutral to slightly oversold in the coming two weeks and this should allow XNG to maintain price support above its 30-day and 60-day moving averages.

On the oil front, a recent front page headline in the Financial Times newspaper proclaimed that Iraq could have twice as much oil as estimated.” The report was based on a study from the consulting firm IHS and it estimated that Iraq’s production could be increased from its current rate of less than 2m barrels a day to 4m b/d in about five years, if international investment begins to flow. This potential increase in oil reserves is only the tip of the iceberg as other “mystery” supplies of oil will be announced in the coming months. This will keep the oil price in check and will prevent the oil price-related economic crunch the bears have been expecting.

Dollar collapse?

Will the U.S. dollar experience a catastrophic collapse? Books and articles galore have been showered upon the public in which the writers purvey a coming dollar crash, a scenario which they say will destroy the U.S. economy as well as render the dollar a has-been among the major world currencies. Could such an event actually transpire in 2007?

Dollar bears point out that the dollar’s weakness so far this year is due to a perceived deterioration in “U.S. economic fundamentals as well as a rise in implied inflation.” (Financial Times, April 20). A chief currency strategist at Danske Bank was quoted as saying, “Historically, a stagflationary environment has been bearish for the dollar.”

With monetary liquidity making a major rebound in the U.S. and the growth stock outlook looking most promising, capital inflows will end up sustaining the dollar and preventing a stagflation-type of environment that the gloom-and-doomers keep preaching. The simple fact remains that the dollar is still the world’s reserve currency and as long as it maintains its top status it will be supported and kept from crashing. There will undoubtedly be periods of weakness, perhaps even extreme weakness, but such weakness won’t be allowed to develop further into an outright collapse. The dollar has been likened by one observer to a cancer patient: the poor unfortunate is given chemotherapy to the point of death, then resuscitated with vitamins and allowed to restore white blood cell count for a while. Then back to the chemo and the inevitable decline in health that follows.

Same story with the dollar: strong dollar, weak dollar, strong dollar, weak dollar….it’s all part of how the global financial system operates -- a fact which apparently escapes the dollar perma-bears. They don’t seem to grasp that currency fluctuations are part and parcel of how the world’s financial markets and economies are run; further, that periods of weakness, sometimes prolonged weakness, are inevitable.

The news media will also use the weak dollar as a proverbial “big stick” to beat the public on the head and scare them into selling stocks whenever it is needed, as was done in part during the late February/early March stock market correction. This is all part of the gamesmanship that keeps the average retail investor out of equities while the smart traders buy stocks on the cheap. Therefore it shouldn’t be surprising if the recent talk surrounding the sub-prime mortgage market is soon supplanted by talk of an “imminent dollar collapse.” But as weak as the dollar is now, it won’t be allowed to suffer a catastrophic decline.

The latest headline in the Financial Times has once again put the spotlight on the latest dollar weakness. Now it’s time to watch for the dollar bears to come out in full force, growling all the way. The U.S. dollar index has fallen to a major benchmark low at the 82 level and is threatening to test the major long-term low at 80. Support should be encountered in the dollar somewhere between the 80 and 82 levels followed by a period of base building and eventually a reversal of the weakness. Already the dollar index has made a downside “channel buster” which normally implies exhaustion of the short-term downtrend. The dollar index has made three successive channel busters below the lower boundary of the downtrend channel that has been intact since January of this year. See chart below for details. A triple channel buster usually succeeds in at least ending the short-term downtrend.

Another point well worth considering is the relationship between the dollar and interest rates. In particular, the 3-month T-Bill Discount Rate can be used as a leading indicator for the direction of the dollar. As Carl Swenlin points out in his Decision Point web site: “The direction of interest rates is an important element affecting the dollar. Rising rates give the dollar strength and falling rates bring weakness. Changes in interest rate trends tend to lead the dollar by about a year.” Note the dollar vs. interest rate chart below.

As you can clearly see, the T-Bill rate has been rising steadily since 2004. It’s time for the dollar to respond by establishing support above its long-term base line and reversing its current weakness, an event that should be witnessed in the coming months.

Clif Droke is editor of the daily Durban Deep/XAU Report which covers South African, U.S. and Canadian gold and silver mining equities and forecasts PM trends, short- and intermediate-term, using unique proprietary analytical methods and internal momentum analysis. He is also the author of numerous books, including "Stock Trading with Moving Averages." For more information visit www.clifdroke.com

The state of Alaska will have less money to spend than expected next year due to a revised estimate of North Slope oil production and fewer tax dollars coming in, state analysts said.

The Department of Revenue spring forecast, which lawmakers use to craft the state budget, predicted Thursday that the state will bring in $364 million less than expected over the next fiscal year, which starts July 1.

The larger-than-expected decline would slash next year's projected budget surplus, which was pegged at $500 million. It now looks to be closer to $200 million and that's only because the report Thursday says the state will bring in $68 million more than expected this fiscal year, which ends June 30. That surplus could be carried over to help offset the projected decline.

Lawmakers warn that trend also could mean the state will be spending more than it earns by fiscal year 2009 as oil production on the North Slope continues a steady decline.

"I thought the oil fairy would save us again in '09 but what we are finding is that it isn't," said Sen. Gary Wilken, R-Fairbanks. "And as we move up and down we are going to find we are in a deficit situation."

Revenue Commissioner Pat Galvin said estimated revenues from oil were revised in three ways since a forecast last fall:

-- State economists opted for a more conservative estimate of oil production because of concerns arising over the Prudhoe Bay shutdown last fall due to leaks from corroded pipes.

"The likelihood of things occurring is greater given that we have a 30-year-old field," said chief economist Michael Williams. Williams also said the revised production estimate reflects problems in counting the barrels of oil from various fields after oil was rerouted to other lines in the wake of the spill.

-- Expected revenues from the new oil tax were lowered when the petroleum production tax payments, which brought in an extra $1 billion over the old tax plan, came in earlier this month at about $90 million less than expected.

The state underestimated operating costs that oil companies would be deducting by about 50 percent while overestimating their capital costs by about 15 percent.

-- State officials also underestimated the amount of credits oil companies would claim under the next tax scheme this year. They now expect companies to claim those credits next year.

The Revenue Department predicts the general fund will have earned a record $4.98 billion by June 30, the end of fiscal year 2007.

But it's not so rosy for next year, when earnings will only bring in $3.5 billion.

Analysts attribute the drop to declining oil prices and the rising cost of shipping oil to the West Coast. Royalties and taxes from North Slope crude make up about 85 percent of the state's revenues.

Meanwhile, the state's long-term forecast continues to look grim.

Though oil production this year is projected to be higher than last year, barring another major disruption, it is on the decline overall.

Revenue officials forecast that production will sink to 682,000 barrels a day by the year 2016 as compared to 764,000 barrels a day next year. That's compared to a peak of 2 million barrels a day in 1988.

Oil prices are also projected to fall over the long term, though prices have been notoriously volatile in recent years.

Gov. Sarah Palin's budget director, Karen Rehfeld, said the state's long-term prospects point to the need to bring Alaska's natural gas to market.

"We struggle because we have so many things that need to get done in this state and there's a lot of pressure on those revenues," Rehfeld said. "And until we get a long-term stable funding source, we are going to have some challenges."

Siberian Energy Group, Inc. announced today that the Company is scheduled to present at The Independent Petroleum Association of America's (IPAA) Oil and Gas Symposium, April 23-25, 2007 at the Sheraton NY Hotel and Towers in New York City.

David Zaikin, Chairman and Chief Executive Officer of Siberian Energy, will give a presentation on the Company followed by a question and answer session on Wednesday, April 25, at 3:20 p.m. EDT. The presentation will be broadcast live over the Internet and will be archived for 12 months. Interested parties may listen to the presentation by visiting the Company's website at: www.siberianenergy.com.

In addition, Siberian Energy will host breakfast roundtables for investors between 7:45 and 8:30 a.m. EDT, on Tuesday, April 24, and Wednesday, April 25.

Siberian Energy's Joint Venture with Baltic Petroleum (E&P) Limited, Zauralneftegaz (ZNG) and Siberian's wholly owned subsidiary, Kondaneftegaz (KNG), hold oil and gas exploration licenses covering over one million acres, strategically located in the Kurgan and Khanty-Mansiysk regions of West Siberia. The West Siberian region accounts for 70% of oil production and 90% of natural gas production in Russia and 7% of global oil production.

In January 2007, ZNG began exploratory drilling on its first well, Privolny 1, and expects to report initial results in the second quarter of 2007. The location for a second well, Privolny 2 -- is being determined. In addition, preparations are being made to drill in the southwest of the Mokrousovsky parcel, which is one of the seven blocks covered by ZNG's exploratory licenses.

More recently, KNG applied for nine oil and gas licenses, and is anticipating final approval for four of these in the second quarter of 2007. These prospective license areas have several competitive advantages through their proven oil deposits, proximity to a previously developed river transportation system (through which KNG will be able to deliver equipment for the wells) and proximity to major oil and gas pipelines.

About IPAA

Founded in 1929, The Independent Petroleum Association of America (IPAA) is the national association representing the thousands of independent crude oil and natural gas explorer/producers in the United States. The IPAA Oil & Gas Investment Symposium New York (OGIS New York) is the premier outlet for publicly traded independent exploration and production, and service and supply companies to present their company profiles to the investment community. Last year's Symposium attracted over 1,600 attendees, including more than 700 buy/sell-side analysts and portfolio managers and 100 presenting companies.

About Siberian Energy Group, Inc.

Siberian Energy is a unique, U.S.-based public oil and gas exploration company with 100% of its assets located in West Siberia, Russia. The Company evaluates investment and acquisition opportunities in Russia and Eastern Europe with the goal of bringing a portfolio of natural resource licenses and operating companies to Western investors. Siberian Energy strives to provide an attractive ROI to shareholders by pursuing high-yield investment projects, reducing costs, and adhering to strict principles of transparency, disclosure and environmental consciousness. Additional information may be found at www.siberianenergy.com.

The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date thereof, and also takes no obligation to update or correct information prepared by third parties that are not paid for by the company. Readers should carefully review the risks described in other documents the company files from time to time with the Securities and Exchange Commission, including Annual Reports, Quarterly Reports and Current Reports on Form 8-K.


Contact:

Contacts:
Siberian Energy Group, Inc.
David Zaikin
Chief Executive Officer
Tel: 212-828-3011
Email: Email Contact

The Global Consulting Group
Rachel Levine
Investor Relations
Tel: 646-284-9439
Email: Email Contact

Ivette Almeida
Media Relations
Tel: 646-284-9455
Email: Email Contact


Source: Siberian Energy Group, Inc.

Oil prices were mixed in Asian trading Friday ahead of the May futures contract's expiry.

Light, sweet crude for May delivery, due to expiry later Friday, rose 31 cents to $62.14 a barrel on the New York Mercantile Exchange midafternoon in Singapore.

"Today's modest rise comes due to short-covering ahead of expiry later, while June, July contracts are down on roll-over from May," said Ken Hasegawa of Tokyo brokerage Himawari CX. Short positions are bets that prices will fall, and when traders cover, or buy back, those short sales, prices rise.

The June contract, which moves to the front month Monday, slipped 17 cents to $63.15. Hasegawa said June crude prices are likely to remain lower with little news to prompt fresh buying.

Brent crude for June slipped 4 cents to $65.90 a barrel at London's ICE Futures exchange.

The May contract tumbled more than $1 Thursday to a one-week low, settling at $61.83 a barrel, as traders focused on inventory buildups at a key Oklahoma oil terminal.

Also stoking inventory concerns was Enbridge Inc.'s announcement that it reopened a pipeline that had been closed due to a leak on Sunday. The line is used to move crude oil from Canada to the Midwest.

Prices were also weighed down by a consultant's report that
Iraq oil reserves could be much larger than initially expected, and reports that China may take more serious steps to slow its economic growth, using less oil. China's gross domestic product grew 11.1 percent in the first quarter.

Crude oil prices have slumped more than 6 percent since March 29, when they hit a six-month closing high on concern
Iran's capture of 15 U.K. marines and sailors could lead to armed conflict.

Geopolitical factors continue to be a concern for the market as traders look to the situation in Nigeria, where there have been scattered reports of violence this week ahead of Saturday's presidential elections.

Nigeria is the world's eighth-largest oil exporter and a main supplier to the United States. Last week, 21 Nigerians were killed in violence surrounding state elections.

In other Nymex trading, heating oil futures fell marginally to $1.8024 a gallon while natural gas prices dropped 2.6 cents to $7.466 per 1,000 cubic feet.

Toronto stocks headed for a higher open on Friday, reversing some of the previous session's sharp losses, as a rally in oil prices and merger and acquisition frenzy help the resource-laced market shake off concerns over interest rate hikes in commodities-hungry China.

On the M&A front, mining company Dynatec Corp. will be in the spotlight after rival Sherritt International Corp. launched a friendly takeover bid worth C$1.6 billion.

"The mining sector is ripe for a series of takeovers," said Joe Ismail, technical analyst at Maison Placements Canada. "We will see the consolidation wave reaching the junior gold miners as well as the junior energy stocks in the next 12 months."

In the telecom sector, BCE Inc. will be in focus again after The Globe and Mail said New York-based private equity firm Kohlberg Kravis Roberts is eyeing control of one-third of the company. Earlier this week, BCE said it was in talks with major Canadian pensions funds and KKR over a potential going private transaction.

Also on the mergers and acquisition front, Groupe Laperriere & Verreault will attract investor attention after saying it will sell its mineral business to Danish engineering group FLSmidth for about C$950 million and spin off to shareholders its water treatment and pulp and paper units.

On the commodities front, the TSX energy group, which makes up nearly 30 percent of the composite index, will find support in buoyant oil prices. U.S. crude oil futures gained 80 cents, to $62.63, bouncing back from a recent slump.

On the earnings front, Corel Corp. will be in focus after reporting a larger quarterly loss after the bell on Thursday as operating expenses surged, but the results still topped forecasts.

The S&P/TSX composite index tumbled 1 percent, or 137.26 points on Thursday, to close at 13,574.70 as fears of interest rate hikes in China that could dampen demand for commodities sent Toronto's main index retreating from record highs, along with other major equities market around the world.

($1=$1.13 Canadian)

Oil prices rose early Friday ahead of the weekend presidential election in Nigeria where gunmen attacked a boat carrying oil workers near the nation's southern oil region.

Traders also were positioning ahead of the May contract's expiration on Friday, which kept the June contract gains minimal.

The electoral period in Nigeria — Africa's largest oil producer and a main supplier to the United States — has been chaotic. At least 49 people have died in violence since April 14 and many more were reported dead in political violence before last weekend's state vote.

Officials said Friday that gunmen attacked a boat carrying oil workers to an offshore rig in waters off Nigeria's unruly south, wounding six, officials said. Security forces drove off the attackers, a private security official said.

Light, sweet crude for May delivery rose 65 cents to $62.48 a barrel in morning trading on the New York Mercantile Exchange. The June contract, which moves to the front month Monday, rose 12 cents to $63.44.

Brent crude for June rose 26 cents to $66.20 a barrel at London's ICE Futures exchange.

"With so many reasons for there to be short-covering ... it would be natural for prices to advance briskly on what everyone will say are fears over Nigeria's weekend election," said Peter Beutel of Cameron Hanover.

"If that happens, then this market still has the ability to rise on this type of news. And, since that ability correlates much more closely with bullish markets, price strength on Nigeria fears today could tell us we are still in a bullish market."

More than 150 foreigners have been kidnapped over the past year in Nigeria's southern region where crude is pumped in Africa's largest producer. Stepped-up violence has trimmed Nigeria's daily production by about one quarter, helping send global crude prices higher.

In other Nymex trading, heating oil futures rose less than a cent to $1.8091 a gallon, while natural gas dropped 13.2 cents to $7.360 per 1,000 cubic feet. Gasoline futures rose 1.32 cent to $2.1020 a gallon.

The price increases came after an abrupt drop the day before. The May contract tumbled more than $1 Thursday to a one-week low, settling at $61.83 a barrel, as traders focused on inventory buildups at a key Oklahoma oil terminal.

Also stoking inventory concerns was Enbridge Inc.'s announcement that it reopened a pipeline that had been closed due to a leak on Sunday. The line is used to move crude oil from Canada to the Midwest.

Prices were further weighed down by a consultant's report that
Iraq oil reserves could be much larger than initially expected, and reports that China may take more serious steps to slow its economic growth, thus using less oil. China's gross domestic product grew 11.1 percent in the first quarter.

Crude oil prices had slumped more than 6 percent since March 29, when they hit a six-month closing high as
Iran's capture of 15 U.K. marines and sailors raised fears of an armed conflict.

Oil prices rose nearly $1 a barrel Friday ahead of the weekend presidential election in Nigeria, where gunmen attacked a boat carrying oil workers near the nation's southern oil region.

Traders also were positioning ahead of the May contract's expiration on Friday, which kept the June contract gains minimal.

The electoral period in Nigeria — Africa's largest oil producer and a main supplier to the United States — has been chaotic. At least 49 people have died in violence since April 14 and many more were reported dead in political violence before last weekend's state vote.

Officials said Friday that gunmen attacked a boat carrying oil workers to an offshore rig in waters off Nigeria's unruly south, wounding six, officials said. Security forces drove off the attackers, a private security official said.

Light, sweet crude for May delivery rose 97 cents to $62.80 a barrel in midday trading on the New York Mercantile Exchange. The June contract, which moves to the front month Monday, rose 39 cents to $63.71.

Brent crude for June rose 31 cents to $66.25 a barrel at London's ICE Futures exchange.

"With so many reasons for there to be short-covering ... it would be natural for prices to advance briskly on what everyone will say are fears over Nigeria's weekend election," said Peter Beutel of Cameron Hanover.

"If that happens, then this market still has the ability to rise on this type of news. And, since that ability correlates much more closely with bullish markets, price strength on Nigeria fears today could tell us we are still in a bullish market."

More than 150 foreigners have been kidnapped over the past year in Nigeria's southern region where crude is pumped in Africa's largest producer. Stepped-up violence has trimmed Nigeria's daily production by about one quarter, helping send global crude prices higher.

In other Nymex trading, heating oil futures rose 1.31 cent to $1.8189 a gallon, while natural gas dropped 11 cents to $7.382 per 1,000 cubic feet. Gasoline futures rose 1.72 cent to $2.1060 a gallon.

The price increases came after an abrupt drop the day before. The May contract tumbled more than $1 Thursday to a one-week low, settling at $61.83 a barrel, as traders focused on inventory buildups at a key Oklahoma oil terminal.

Also stoking inventory concerns was Enbridge Inc.'s announcement that it reopened a pipeline that had been closed due to a leak on Sunday. The line is used to move crude oil from Canada to the Midwest.

Prices were further weighed down by a consultant's report that
Iraq oil reserves could be much larger than initially expected, and reports that China may take more serious steps to slow its economic growth, thus using less oil. China's gross domestic product grew 11.1 percent in the first quarter.

Crude oil prices had slumped more than 6 percent since March 29, when they hit a six-month closing high as
Iran's capture of 15 U.K. marines and sailors raised fears of an armed conflict.