herrera oil- recomendation 4-2-15 (1)

Herrera Petroleum CorporationGlobal Supplier of Combustibles Premier Refining, Marketing and Hydrocarbon Processing Companies

April 2, 2015 Dear Mr. Hansen,

My name is Ted Coulopoulos. I am, among other titles, a Mandate for Herrera Petroleum Corporation here in the US (see attached Mandate Letter). I have been requested by David Hutton to write to you a letter of recommendation. First and foremost, I can state without hesitation that I strongly recommend David for employment with your company. Allow me to explain.

Our company has worked with David for approximately three years on trades of various types of petroleum products for various Buyers throughout the world. David has been involved in all aspects of these transactions and has performed his work with a high degree of professional integrity and expertise providing critical legal opinions of such a nature that few attorneys could deliver.

As an example, I can recall a fuel trade that was contingent on the interpretation and application of the newly-enacted Basel III regulation. David’s opinion regarding this new regulation successfully addressed the concerns expressed by the principals to the transaction which made the trade viable. His opinion was not only complex, but considered the positions derived from interviews with major banks, government officials, and his own past experience as an international attorney, and the application of Basel I and Basel II as well and how they related to these types of fuel transactions. (See the attached opinion.)

His opinion was highly professional, very persuasive, and compelling which provided assurances needed by the parties to the transaction to consider the trade. Prior to David’s involvement in the trade, the other attorneys simply looked at the regulation on its face value. However, based on David’s in-depth analysis, he was able to identify and support facts that would assure the Parties that the fuel trade under consideration was, in fact, in compliance with the new Basel III regulations. Needless to say, this placed the transaction on a new perspective and changed the paradigm entirely. This is but one of many examples of David’s work product that I can recall. Suffice it to say that there were many other instances of these types of accomplishments.

His past experience has proved to be of significant importance as a former Chief Counsel for major corporations, as well as his international law enforcement/Intelligence

Mr. Hansen April 2, 2015 background which has proven to be an invaluable asset when we were in need of vital information that was unavailable to most attorneys or companies – but not in his case.

David has maintained his contacts, rapport and relationships. Oftentimes, they reach out to him for his opinion on vital and sensitive information and strategy, so he is highly regarded by various agencies as well. This came as no surprise to us after working with David for a length of time.

As a Mandate for Herrera Petroleum Corporation and officer of Petroleum Trading Partners LLC, a private trading company, I would recommend David for any task given to him. His negotiating skills are excellent and he has a high level of commitment to "Asset Protection." This is important in any organization whether it be trade, manufacturing or any other business sector. He is astute in structuring trade agreements and other numerous International Buy/Sell Trade transactions. David is what's commonly known as a "Go-to Guy" when issues or problems arise. His sense of learning while doing is uncanny, but nonetheless, when he is done the end product is professional and gets results – a true problem solver.

Probably just as important are his humanistic qualities, his sense of honor, caring for others and working with groups, and providing support and instilling confidence in others. He is extremely honest and I could provide details of examples of this as well, but you undoubtedly know this already.

I hope that you will consider my recommendation for David and seriously consider him for a position with your company. I have no doubt that all of his past employers would attest to David’s character, ethics, skills and professional qualifications. It is without any hesitation that I recommend David Hutton for any position he is applying for in your organization

Respectfully,

Ted Coulopoulos, Mandate Herrera Petroleum Corporation

Herrera Petroleum Corporation & Oil Refineries Group Global Supplier of Combustibles

Miami, FL USA

www.herreraoil.com

CONFIDENTIAL

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Authorized Signed

Dr. Raúl Herrera President - CEO Herrera Petroleum Corporation & Oil Refineries Group United States Department of Energy ID number: 2346940000 US Energy Information Administration

DAVID W. HUTTON ATTORNEY AT LAW

Licensed in MS, TN, TX, NE, & Northern Mariana Islands (210) 838-0037 - E-mail: [email protected]

November 7, 2013 Fred Vasquez Ted Coules Richard Bass In Regards: Impact of Basel III on Commodity Trade of Fuels Finance Dear Fred, Ted and Rick Greetings; my name is David Hutton and together with Jon Cook, Esq. we are Attorneys based in Chattanooga, Tennessee, USA. We are presently involved in trades of various materials and commodities in various parts of the world (the “Transactions”). In representing our clients (both purchasers and sellers), we have encountered concern with respect to what is commonly referred to as Basel III1 (“Basel III”) and the impact it will have on the Transactions and potential lenders’ requirements with respect to commodity trade finance. While every lender has different internal policies and procedures, we, as attorneys reading Basel III and commentary, would like to provide you with our view as to what Basel III requires and what we believe in terms of its appropriate (and inappropriate) impact on the Transactions. There is a great deal of misinformation with respect to this regulation as there are many others (Bank Secrecy, Patriot Act Tittle III, etc…) and we hope that this letter helps you in evaluating the Transactions and meeting our goals of obtaining the necessary bank instruments and remaining within the procedures of Vizor.

BACKGROUND ON THE BASEL COMMITTEE2 In 1975 in response to disruptions in the international financial markets, the central bank governors of the G10 countries established what is now known as the Basel Committee on Banking Supervision (the “Committee”). The Committee is designed as a forum for regular cooperation between its member countries on banking supervisory matters whose aim is to enhance global financial stability. The committee now includes 27 jurisdictions.3 It is important to note that the Committee’s decisions have no legal force, rather, it formulates supervisory standards and guidelines and recommends best practices in the expectation that individual national authorities will implement them.4 1 As published by the Committee in Basel III: A Global Regulatory Framework for more resilient banks and banking systems and Basel III: International Framework for Liquidity Risk Measurement, Standards and Monitoring. 2 For additional general information on the Committee, please visit http://www.bis.org/bcbs/about.htm.

3 The member countries are Argentina, Austrailia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong SAR, India, Indonesia, Italy, Japan, Korea, Luxembourg, Mexico, Netherlands, Russia, Saudi Arabia, Singapre, South Africa, Spain, Sweden, Switzerland, Turkey, United Kingdom, and the United States of America. 4 This letter does not specifically address the implementing regulations in place in any particular country because each has adopted its own versions but rather addresses Basel III itself as published by the Committee. As noted above, Basel III has no legal force itself and must be implemented by individual nation authorities.

financial stability. The committee now includes 27 jurisdictions.5The member countries are Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong SAR, India, Indonesia, Italy, Japan, Korea, Luxembourg, Mexico, Netherlands, Russia, Saudi Arabia, Singapore, South Africa, Spain, Sweden, Switzerland, Turkey, United Kingdom, and the United States of America. It is important to note that the Committee’s decisions have no legal force, rather, it formulates supervisory standards and guidelines and recommends best practices in the expectation that individual national authorities will implement them. 1 This letter does not specifically address the implementing regulations in place in any particular country because each has adopted its own versions but rather addresses Basel III itself as published by the Committee. As noted above, Basel III has no legal force itself and must be implemented by individual nation authorities.

BASEL III – WHAT IT DOES AND DOES NOT DO In response to the financial crisis of 2008, the Committee once again felt it necessary to further enhance the regulatory framework established by its previous rules. Basel III builds on what is commonly referred to as, Basel I and II, and seeks to improve the banking sector’s ability to deal with financial and economic stress, improve risk management, and strengthen the banks’ transparency. In essence and by its own definition Basel III establishes tougher capital standards through more restrictive capital definitions, higher Risk Weighted Assets, etc… additional capital buffers, and higher requirements for minimum capital ratios. It establishes new liquidity standards by including a minimum liquidity ratio. An important element of Basel III is that it also includes a minimum amount of loss-absorbing capital relative to all of a bank’s assets and off-balance-sheet exposures regardless of risk weighting. Basel III does not set forth specific rules by which banks have to operate in connection with trade finance nor do they even refer to the term “trade finance”. A search online can quickly uncover operative statements such as “the top 100 world banks will no longer issue instruments until full and proper verification of product has been provided by the seller”. While it is conceivable that a bank may have such requirements in place, Basel III in no way indicates what banks must require prior to issuing a specific and particular form of proof or verification depending on the particular transaction of financial instrument as we discussed yesterday, in particular “tank receipts”. Such a statement is just one of countless examples of the misinformation that can be found online. Such misinformation is common with many “knee jerk” regulations that Congress or other governmental bodies pass with haste in response to catastrophic events (example-Patriot Act in response to 911).

SO WHAT DOES ALL OF THIS MEAN TO US IN THE TRADE OF JP-54 FUEL?

Fred Vasquez he been made to understand, by the banks, that they now require full cooperation or adherence to the current requirements of Basel III. He is not the first major player in this fuel business that I have heard this from. As such, our analysis began on this several months ago as we are accustomed to placing ourselves in differing positions to counter financial regulations that do have the force of Law, (Consumer Protection Acts, Gramm Leach Bliley , Dodd Frank, etc…) on behalf of our clients. The point is that we wanted to give Fred “legal ammunition” to attempt to persuade the banks to issue the necessary instruments that HE would like to be issued and not be blindsided by a scripted statement like: “We’d like to help you Mr. Vasquez but we are just following the Law.” While that may be easy for the banks to say, we can be confident in responding, “that may be a policy but it is not and has not been the law in any country, and especially in the United States”. Our focus here is bank security and the necessary elements to provide this to the banking institution (documents, past experience, past banking relations, knowledge in the field, stability of the parties entering into such a trade transaction, etc…..) I’ll wager right now that the Citibank Branch Bank of Singapore does not have a requirement that a “tank receipt” is required prior to issuing a financial instrument in connection with a fuel trade. Contract, company profile history in the industry and all the other factors to give credence or worthiness to the transaction are all reasonable requests, but requirements of the banks has not been changed by the Law - (we would not even be discussing this were it not been for the demise of Fannie Mae & Freddie Mac, the collapse of the real estate market brought on by these institutions who caused these economic debacles in the first place by lifting banking regulations that were in place since Roosevelt ?) Ok, so let’s give Fred his ammo……

ARGUMENTS IN FAVOR OF COMMODITY TRADE FINANCE BEING TREATED DIFFERENTLY THAN OTHER OFF-BALANCE-SHEET INSTRUMENTS

While Basel III does not specifically address trade finance, one of the key challenges raised by Basel III for commodity trade finance is the principle that off-balance-sheet (“OBS”) instruments are a significant source of leverage for banks, and should be considered in an institution’s overall list of obligations and limited. This limitation is accomplished by applying a uniform 100 percent credit conversion factor to all OBS instruments for the purpose of calculating the specified leverage ratios. But this term is a banking institutional metaphor used within their internal policies, right? I mean, it does not necessarily apply to any particular “type” of business but at the same time it could easily apply to an Industry as a whole (used car sales customers, 2nd lien mortgage companies that are poor performers. etc…) i.e. “Risky Business” As argued by numerous commentators and industry advocates, this “OBS” calculation is inappropriate for trade finance products as it fails to differentiate trade finance products from other riskier OBS financial instruments and denies the historical data that exposure to commodity trade finance assets have been overall safe assets to hold. Unlike many

other OBS instruments, trade finance products are often of a short-term and self-liquidating nature. They are based on the tangible need of customers for credit enhancing, settlement and financing in the trade of goods and services. Unlike synthetic financial instruments (e.g. credit default swaps), trade finance products have never posed any significant systematic risk to the financial system.

EMPIRICAL PROOF THAT TRADE FINANCE IS LOW RISK

Historical data has been made available by the International Chamber of Commerce (the “ICC”) which in 2009 established the ICC Trade Finance Register to collect performance data on trade finance products. The initiative of this project was to support the proposition that trade finance is a relatively low-risk form of financing.

WHAT IS THE “OBS” DEFAULT RATE IN INTERNATIONAL TRADE OF FUELS? On October 26, 2011, the International Chamber of Commerce published a report entitled Global Risks – Trade Finance 2011.6 The report revealed that fewer than 3,000 defaults were observed in the full dataset comprising 11.4 million transactions. For the three focus years of the report, default rates for OBS trade products were especially low, with only 947 defaults in a sample of 5.2 million transactions. Basel III is still in its very early stages of implementation in the participating member countries. Eventually, some case law will shed more light on Basel III but that time has not yet come. It is more likely that these interpretations will come through legislative and regulatory revision. Industry advocates will continue to fight for a more just and appropriate treatment of commodity trade finance under Basel III with respect to credit conversion factors. Regardless, Basel III does not set specific guidelines detailing what lenders must require prior to issuing a financial instrument, in this case an MT 103-23. So, it is very prudent and safe to state that a bank’s Basel III analysis is subjective and remains a business decision on behalf of the banks. As such, we would like to briefly identify some of the strengths of this particular transaction.

THE TRANSACTION

SELLER BACKGROUND INFORMATION

6 Available at: http://www.google.com/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=1&ved=0CCkQFjAA&url=http%3A%2F%2Fwww.iccwbo.org%2FData%2FPolicies%2F2011%2FICC-Register-Report_October-2011%2F&ei=JAV7UtDjENDNkQfenYDYCw&usg=AFQjCNFTH85ym2tRfh0xOnbhrxde3BAGkw.

BUYER BACKGROUND INFORMATION

The trading of commodities happens at an extremely fast pace. Commodities often have a limited “shelf life” and will not sit on a ship for an extended period of time. When entering into the transaction, the key element should not be proof of product but rather proof that the supplier is RWA (ready, willing & able) to produce.7 We believe that the following documents evidence that Vizor is such a supplier: (1) Soft Corporate Offer (2) Irrevocable Corporate Purchase Order; (3) Fully Executed Contract; (4) Pro forma Invoice; (5) Statement of Availability of product; (6) Certificate of Origin; and (7) Corporate Profiles (8) Banking History – track record of performance

To Fred, Ted & Rick All along in these various attempts in these transactions we have been operating and working in a “foreign world” and you have been enormous mentors to us and brought us along through patience, teaching and very unselfish use of your valuable time in allowing us to get our “Sea Legs” under us and provide a legal platform for you, when and if that time arrived. Now finally the home field advantage has changed. We are no strangers to governmental encounters at all levels. This year alone we have faced the US Dept. Of Justice in Washington DC, The Federal Elections Commission (DC), the Securities Exchange Commission (LA California), the Tennessee Department of Banking (three cases) and three foreign State Attorney General’s Offices and God himself has allowed us to prevail against them all. So now we are able to assist you in whatever way that we can and “in our arena” of Law & Jurisprudence you can rest assured that we can do just that. We too enjoy Herrera and IGT in our own world and unlike any other small law firm of our size in the United States. 7 Jaco van Duijvenbode may have had the best suggestion yesterday when he introduced the concept of “Bank to Refinery Confirmation” that numerous banking institutions are already doing (Bank of America, Hibernia National Bank- New Orleans) and creatively and safely walking through the Basel III edicts. These banks obviously view this as their Basel III compliance and we would applaud this skilled effort and agree

CLOSING REMARKS In closing, this transaction is one between two reputable and experienced parties. We are going to provide adequate documentation that should provide your bank comfort in issuing the required financial instrument. It certainly will be compliant with Basel III and to you Fred Vasquez you can with absolute confidence respond to the bank that; “That is not what the Law states”. I am a graduate of The Hague Academy of Advanced International Law, The Netherlands and a practicing attorney of 30 years in jurisdictions ranging from Tennessee, Texas to the Northern Mariana Islands and have held cases in fourteen US State jurisdictions including a case before the United States Supreme Court, Writ of Certiorari. I can say without hesitation that this is a transaction in which we are proud to play a role and hope that there will be many more. If there is any way that I can be of further assistance, please do not hesitate to call me directly. Lastly let us express our gratitude to each of you and especially to Rick Bass to whom I owe everything I know about this business.

Very Sincerely, David Hutton *See utilized Authority , below

USEFUL WEBSITES USED IN PREPARING THIS STATUTORY CONSTRUCTION ANALYIS: http://www.gtlaw.ch/publications/Offprint_JIBLR_9_THIEFFRY.pdf Good article summarizing some of the requirements under Basel III and addressing issues faced by commodity trade finance. http://www.bis.org/bcbs/about.htm Good summary of Basel Committee and various articles relating to Basel. http://www.tradefinancemagazine.com/uploads/TFMO/TFMO2013.pdf Powerpoint from Trade Finance Magazine with various articles relating to trade finance market in 2013. The articles starting on pages 70 and 82 were particularly useful. http://www.aba.com/Issues/Pages/Basel_III.aspx US final rule and extensive commentary. http://vimeo.com/59895335 Good 10 minute summary video on Basel III Of Particular Note Regarding POP –Basel III http://www.gemflight.com/ If you scroll about 2/3 of the way down the page you see an example of a notice that we found posted all across the internet. The notice basically says that under the Basel III banking laws the top 100 world banks will no longer issue instruments until full and proper verification of product is received by the seller. Caveat’- This website goes on to state that they contacted the European Central Bank who responded by saying that the message was part of a fraud scheme. As you know, there is a tremendous amount of misinformation out there and we are in wonderment if these types of postings are but one of the many sources of the misinformation with respect to Basel III’s requirements. That being said and true or not true is The Great Fact that the Basel III Regulation itself DOES NOT mention nor require anything of this specific of a nature and a greater fact is that this is not followed by the top 100 World Banks.

This overview and all contents are strictly confidential and remain the intellectual property of Herrera Petroleum Corp. and Herrera Exploration, LLC, ©2008.

www.herrerapetroleum.com

CONFIDENTIAL

Herrera Petroleum Corporation Global Supplier of Combustibles Premier Oil Refining, Marketing and Hydrocarbon Processing Companies

This overview and all its contents are strictly confidential and remain the intellectual property of Herrera Petroleum Corporation and Herrera Exploration, LLC, © 2008.


Company Overviews


Herrera Petroleum Corporation Overview Herrera Petroleum Corporation (HPC) is the industry leader and global supplier of all types of gasoline and petroleum refined products. Established history since 1973, we currently produce, buy, and sell a wide variety of petroleum products.

• Industry Leader in Premier Refining and Marketing • Global Oil Refining and Hydrocarbon Processing Companies • Independent Marketing and Supply Gasoline, Ethanol and Oil Company • Management Service Company. International Energy Risk Management

for Oil and Gas • World Leader in Customer Solutions • Established Reputation and Quality Operations • Servicing the World One Order at a Time



National and International commercialization, manufacturing, operations and marketing of all type of gasoline, fuels, ethanol, lubricants, greases, cleaners, oils, hydraulic fluids, fertilizers, diesel, crude oil and refined products. Importer, exporter, supplier and petroleum marketer.

Main Markets Severed Americas Africa Asia Caribbean America East Europe Europe Middle East North Europe Oceania West Europe



HPC Mission Statement

Herrera Petroleum Corporation is a premier refining and marketing Oil Company that leads in supplying high-quality products with superior customer service. Herrera Petroleum is committed to:

• Customer Satisfaction is our number one mission. • Supplying environmentally clean, high quality products. • Aggressively pursuing growth opportunities, both domestically and

internationally. • Continued development of all employees. Facilitating creative thinking,

challenging environments and new employment opportunities. • Providing a rewarding experience to our customers, to satisfy needs,

improve service, encourage teamwork and open communications. • Customer satisfaction by ensuring positive experience, providing reliable

and responsive quality products with value, convenience and excellent services.

• Taking a leadership role in our communities by providing company support to all our customers ensuring customer growth and encouraging employee involvement.



Herrera Exploration, LLC is an exploration company that identifies, partners, acquires, and manages strategic drilling and tank storage projects. The company provides the expertise and structure for researching, implementing, and managing large scale programs and projects. Some Current Projects Include:

• Barnett Shale Drilling Project o Market analysis and deal/risk analysis

• Woodford Drilling Project o Market analysis and deal/risk analysis

• Miami Tank Storage Project • Midwest Tank Storage Project • International Drilling Projects

HE Mission Statement

Herrera Exploration is a premier resource discovery company that uses its extensive knowledge to mine opportunities ahead of the market curve.

Herrera Exploration is committed to:

• Discovering and developing environmentally clean, high quality products. • Develop and service outstanding strategic partnership, which are mutually

beneficial to all stakeholders. • Aggressively pursuing growth opportunities, both domestically and

internationally. • Taking a leadership role in our industry by discovering and utilizing new

technologies to innovate exploration and increase production.

CONFIDENTIAL Introduction to Herrera Petroleum Corporation 6


Introduction to

Industry Leader and Global Supplier of all Types of Gasoline and Petroleum Refined Products


Table of Content

1- Company Overviews 2- Message from the Chairman 3- Introduction 4- Company Mission 5- Commitment 6- Services 7- Product Distribution 8- Management Principles


Message from the Chairman July 18, 2008 Herrera Petroleum Customer Dear Customer: Herrera Petroleum Corporation is delighted with this opportunity of making available to your company our plans for future business. To that regard, we are sending you a brief overview as an introduction to Herrera Petroleum and our integrated energy strategy. I am sure your company could benefit from our plans, its operational strength, resourcefulness and sound financial discipline. The Board of Directors fully supports the integration of our business model into purchasing systems that facilitate the mutual collaboration between our companies. We are very enthusiastic about our interaction and I assure you our commitment for servicing you as an individual partner for Herrera Petroleum. While offering you access to crude and refined products, we know we can provide you with significant contributions in your current projects as well as in future ventures. We assure you complete satisfaction as we prepare innovative energy solutions for your company and deliver years of improved operational performance for you as our customer. Sincerely,

Rafael Herrera Chairman of the Board


Introduction to Herrera Petroleum Corporation

Herrera Petroleum Corporation and Oil Refineries Group is a privately own professional energy company based in the United States of America (USA) specializing in exploration, production, distribution and marketing of petroleum refined products, crude oil and certain petrochemicals. As a provider of midstream energy services to producers and consumers, the company markets Ethanol, all types of Gasoline, Diesel, Fuels and Crude Oils globally. The suppliers represent leading North and South American providers with global oil refining and hydrocarbon processing companies for premier refining and marketing of Petroleum Refined Products and Crude. Senior management has adopted a Code of Conduct to provide guidance for compliance with our high standards of legal and ethical behavior. It covers a broad range of subjects specifically from environmental standards to intellectual property and also sets the general operations of ethical conduct; honesty and fair dealing that apply to any subject or situation, and has been a hallmark from the earliest days of our predecessor company.


On the marketing side, HPC has held long term supply contracts with many refiners in both the United States and abroad. Amongst them are: Conoco Phillips, Citgo, PDVSA, PEMEX, GAZPROM, ROSNEFT Oil Company, Petraco and others. Through a global network of offices and business relationships, Herrera Petroleum fosters long-standing partnerships that seek to offer value, supporting sustainable project growth. This enables us to provide comprehensive project development services worldwide. To assist with this task, Herrera Petroleum Corporation boasts several strategic joint ventures with leading international entities. Herrera Petroleum Corporation and Oil Refineries Group has a joint venture with Amira, www.amiragroup.com with Partners Addax Petroleum www.addaxpetroleum.com and Gunvor Group Petroleum www.gunvorgroup.com both of Geneva, Switzerland is a major crude oil, bi-products and LNG and CNG trader with annual sales of over 70 billion US dollars combined.


Currently, the partnership is involved in plans to construct Gulf King Refinery a 600,000 bpd refining facility www.gulfkingrefinery.com in Louisiana to be completed in the year 2012, with portfolio equity share participation using imported crude oil from Libya and Nigeria. Active in Libya/NOC in several energy and construction sectors that are about to finalize the lifting of 900,000 barrel per month allocation award to China by the joint venture to Sinopec of China and the development of two onshore oilfields drilling blocks, Block 2 and 4.

Also, involved in Nigeria with NNPC in one offshore oilfield drilling block and is bidding for a second offshore oilfield drilling block in Joint Venture Partnership with Synergy Enterprises www.maritimapetroleo.com.br of Brazil and PetroLog www.petrolog.com of Houston, TX and the Carlyle Group of Washington, DC. Arrangements have been made to develop Papua New Guinea vast reserves of LNG in Partnership with Bechtel Corp. of San Francisco, Merrill Lynch of New York, Qatar Gas and Bankers Oil of Canada. The partnership maintains a large office in Kazakhstan for the importation of 2 million barrels of crude oil per day to Europe using our banking facilities with BNP Paribas and Credit Agricole Banks both of Geneva, Switzerland. We have access to Major World Class Independent and State owned refiners such as, Petrobras of Brazil, Reliance Oil Company of India and several other major refiners for direct sales. Pending crude oil requests with several major oil producers such as, SOMO of Iraq and NNPC of Nigeria and are pursuing opportunities with KOC of Kuwait, ARAMCO of Saudi Arabia and Qatar Gas. The partnership is also in the process of being awarded major oilfields drilling and oil well services maintenance contracts in Abu Dhabi and Bahrain. We are active in Indonesia in the development of one oilfield block and have been offered another block on Aceh Island. In addition to, offshore oilfields development in Liberia and both onshore and offshore oilfields development in Mauritania.


Herrera Petroleum Corporation bids to support the USA Government Department of Defense and with the PIDMA/Amira joint venture becomes a solid set aside USA government contractor for the supply of crude oil and petroleum refined products to the US Government Strategic Petroleum Federal Reserve, Military and Civilian Institutions. HPC is a preferred vendor for selected Major Oil companies including ConocoPhillips, Transnafta, Gazpron, PDVSA and CITGO. Crude oil supply contracts include Falconbridge Dominicana and Xtrata. Refined product contracts include Petraco, Spirit Petroleum, Apache and American Biofuels. HPC signed contract value in 2007 amounted in excess of 8 million metric tons of refined products only.

HPC expansion plans also include the purchase of the Tesoro Oil Refinery, its marketing, distributions and gas station systems in the state of Hawaii, USA. It also includes drilling operations in the United States, South America and Angola; as well as an aggressive Crude Oil lifting program from strategically selected locations in the Middle East, Nigeria and Liberia; and the development of state of the art Storage Tank Facilities for distribution and transit of refined products in Argentina, Brazil, Panama, Miami Dade, Florida, USA and Bahamas. Herrera Petroleum Corporation is about to enter a joint venture agreement with Spirit Petroleum www.spiritpetroleum.com, to supply refined products to the American Petroleum Marketers Association.

This joint venture agreement represents in itself a contract value of at least 12 Million Metric Tons of refined HPC products for the Petroleum Marketers Association in USA. Herrera Petroleum is exploring the possibility of starting the process of developing an American Public Company to be publicly traded in the NYSE with several other important players in the Oil Industry of the United States. Mission:

Herrera Petroleum is a premier Oil Company that leads in supplying high-quality products with superior customer service.

Herrera Petroleum mission is to provide high availability, cost effective, industry standard solutions and products that are pre-qualified prior to deployment, satisfying client specific demands internationally.

Herrera Petroleum is committed to:

• Customer Satisfaction is our number one mission. • Supplying environmentally clean, high quality products. • Aggressively pursuing growth opportunities, both domestically and

internationally. • Continued development of all employees. Facilitating creative thinking,

challenging environments and new employment opportunities. • Providing a rewarding experience to our customers, to satisfy needs,

improve service, encourage teamwork and open communications.


• Customer satisfaction by ensuring positive experience, providing reliable and responsive quality products with value, convenience and excellent services.

• Taking a leadership role in our communities by providing company support to all our customers ensuring customer growth and encouraging employee involvement.

Herrera Petroleum is a very well interconnected company working globally to protect the product supply for out customers.

Services:

National and International refining, commercialization, manufacturing, operations and marketing of all type of gasoline, fuels, lubricants, greases, cleaners, oils, hydraulic fluids, fertilizers, diesel, ethanol, crude oil and refined products.

The company is experiencing an exponential growth targeting a global presence.

Positive fundamentals combined with a solid production base supply of high quality provide us with growth opportunities enabling us to create value for our customers and for the group.


Drilling: Throughout its subsidiary Herrera Exploration LLC., the company has the opportunity to become a premier resource discovery group that uses its extensive knowledge to mine opportunities ahead of the market curve.

Drilling operations management from the Dallas Office in Texas USA, relies on researching Horizontal drilling techniques and is currently in the process of providing expertise to large leading multinational oil companies and setting the structure for researching, implementing and managing large scale programs and projects. Important Drilling Projects include the Barnett Shale in Texas (100% target rate on current drilling operations) and the Woodford Drilling Project and an International drilling project with PDVSA in Venezuela. The company is currently negotiating with PDVSA and Petrobras potential explorations in Brazil. Future approaches to this opportunity include a joint venture with Spirit Oil Petroleum to service drilling projects for several important oversees explorations companies.


Herrera Exploration

Herrera Exploration, LLC is an exploration company that identifies, partners, acquires, and manages strategic drilling and tank storage projects. The company provides the expertise and structure for researching, implementing, and managing large scale programs and projects.

HE Mission Statement

Herrera Exploration is a premier resource discovery company that uses its extensive knowledge to mine opportunities ahead of the market curve.

Herrera Exploration is committed to:

• Discovering and developing environmentally clean, high quality products. • Develop and service outstanding strategic partnership, which are mutually

beneficial to all stakeholders. • Aggressively pursuing growth opportunities, both domestically and

internationally. • Taking a leadership role in our industry by discovering and utilizing new

technologies to innovate exploration and increase production.


Crude Oil Refining: Crude Oil processing is generally carried out overseas, however, HPC was instrumental in the pioneering installation of its first Sonocracking unit for crude oil refining in the United States of America in 2008 as well as plans to install new 15,000 bbls/day processing units in Argentina and in Venezuela.


Employing ultrasound technology, the process desulfurizes and hydrogenates crude oil and other oil related products, upgrading sour heavy crude oils into sweeter, lighter crudes, producing more gallons of usable oil per barrel. The process was never before tested in any USA Oil Refinery.

This type of refining technology not only reduces sulphur and nitrogen content in processed crude, but more importantly, will substantially increase the yield of light distillates. API gravity can increase by 6 to 11 points with this technology, depending on the quality of the crude processed (light, medium or heavy).


These test results confirm that, in volume terms, Sonocracking can yield between 20% to 50% more light oil per barrel, depending on the grade of crude processed. In dollar terms, this can mean a significant uplift.


The Winnie Refinery project in Texas, USA, $30,000,000.00 dollars assistance that involves building three new Sonocracking units with 30,000 bbl/day of increased refining capacity and improved storage tank facilities.


Storage Tanks:

Our storage tank project aims to retail distribution to gas stations in NY, NJ, FL and CT in the USA servicing a population of 20 million users from storage tank facilities located in the port of Elizabeth in New Jersey and to gas stations in Miami for storage tank facilities at the Port of Ever Glades in Florida. With tank lease agreements for Spirit Petroleum, the HPC partnership supplies the Detroit , Michigan and Toledo, Ohio markets for the Petroleum Marketers Association of America in the USA. Current expansion plans include the development of Storage Tank facilities in Houston, Texas, USA as well as in Argentina, Brazil, Panama and Bahamas.


Marketing Branches: We have marketing operations in Texas, USA, Manila, Philippines; Milan, Italy; Madrid, Spain; Uberlandia, Brazil; San Juan, Puerto Rico, Santo Domingo, Dominican Republic and Buenos Aires, Argentina. Our Brazilian division is Fax Cargo Limitada of Uberlandia Minas Gerais. International distribution to Latin America is managed from our Miami Florida Office: Alberto Beltran Director Marketing Relations Herrera Petroleum Corporation 5209 NW 74 Ave., Suite 205 Miami FL 33166 USA Inquiries about Jet Fuel Distribution for the United States can be directed to the Doral Office: Tony Porras 9600 NW 38th Street, Suite 205 Doral, FL 33178 USA A combined service for the United States is being installed at the Millenium One Building in Addison, Texas covering both Herrera Exploration LLC and Herrera Petroleum Corporation markets. Negotiations are on the way with the Millennium One Building for our group of companies.


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Consulting Services:

As a management service company, Herrera Petroleum Corporation also offers consulting advice to several other oil companies, refineries, importers, exporters, consumers and gasoline marketing companies around the world.

Product Distribution:

Complete with consulting export services, Herrera Petroleum Corporation offers several options for delivery of products to North America and internationally.


For products matching the appropriate specifications, one option is direct injection into the colonial pipeline system.


Colonial Pipeline System Map USA Another delivery options are product distribution at loading port or by third party vessel to individual port locations around the world.


Management Principles: • Building of an integrated value chain of investments based on customer demands to provide opportunities for future benefits from incremental economics. • Develop a diversified business mix of products and energy services to provide for greater stability of product supply, cash flows and development of multiple growth opportunities. • Build long-term relationships with customers by creating repetitive business models of service that provide value-added benefits while providing solutions and customer satisfaction initiatives. • Conduct business with integrity in all relationships with customers, suppliers, regulators, employees and financial investors. • Maintain a low cost of capital to support long-term growth and cash accretive investments. • Assist customers with strategies to optimize management of energy market fluctuations.


We are very grateful for the hard work of all our employees and the support from our customers and business partners

We are very selective in choosing partnerships and places to explore and operate. We limit our activities to those areas where we feel we can work effectively with the host government and local authorities.

Our company experiences very limited turnover of personnel. The individuals representing us today will likely be the same individuals representing us five to 15 years from now.


Financial Overview:

Our company is privately held. This allows us to take a long-term view with respect to both operations and financial planning, preventing us from being unduly influenced by quarter-to-quarter results.

While we often pursue high-risk/high-reward projects from an operations perspective, our company has always followed a traditionalist financial strategy. We employ a well-conceived and very conservative risk management strategy with respect to financial matters.

HPC has successfully enter into projects with it partners in a series of joint ventures in the United States, South America and the Middle East. Projected financing is specifically addressed to development of new sources and supplies of crude oil and refined products.

HPC has a solid relationship with a wide range of first class financial institutions which has enabled successful and efficient banking activities for the company. Our preferred banks are: Wachovia, Bank of America, BNP Paribas (Suisse) S.A., Geneva; ING Belgium Brussels, Geneva Branch; Credit Agricole (Suisse) S.A., Geneva; Bayerische Hypo-Und Vereinbank AG - Münich; Raiffeisen Zentralbank Osterreich AG, Vienna, Credit Suisse.


Access to detailed company finances may be obtained for credit purposes only by contacting the Miami, Florida based office in the United States.

We believe our company enjoys a reputation for high integrity, ethical behavior and financial means. We project our improvement factor based on reliability of service, customer driven performance, convenience and value, Our client specific procedures enable us to be a design driven company with solutions for your energy needs and creativity to fuel your success.

We think that you will find a relationship with HPC to be extremely rewarding. We would welcome the opportunity to visit with companies and/or individuals interested in establishing mutually rewarding business activities.

Mailing Address: Herrera Petroleum Corporation 5209 NW 74 Ave Suite 205 Miami FL. 33166 Webpage: www.herrerapetroleum.com


We are here to serve you.

Thank you for doing business with us.

In God We Trust

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