FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2013

9. FINANCIAL INSTRUMENTS

The Company did not hold any derivative instruments for the six months ended June 30, 2013 or for the six months ended June 30, 2012.

The majority of the Company's transactions, assets and liabilities are denominated in United States dollars, the functional currency of the Company. There is no significant risk that currency fluctuations will have a negative effect of the value of the Company's cash flows.

The carrying value of estimated fair values of the Company's financial instruments at June 30, 2013, and December 31, 2012 are as follows:

	June 30, 2013							December 31, 2012
All figures in USD '000	Fair Value Hierarchy Level (1)	Fair Value			Carrying Value			Fair Value			Carrying Value
Cash and Cash Equivalent	Level 1		71,125			71,125			55,511			55,511
Marketable Securities	Level 1		-			-			549			549
Working capital, Orion Tanker pool (non-current assets)			-			-			36,987			36,987
2012 Credit Facility			(210,000	)		(210,000	)		(250,000	)		(250,000	)


(1)	The fair value hierarchy level is only applicable to each financial instrument on the balance sheet that are recorded at fair value on a recurring basis

The carrying value of cash and cash equivalents and marketable securities is reasonable estimate of fair value. The estimated fair value for the long term debt is considered to be equal to the carrying values since it bears variable interest rates.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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