For:  B+H
      Ocean
      Carriers Ltd.





From:  Navinvest
      Marine Services (USA) Inc.


The
      Sail
      Loft


19
      Burnside Street


Bristol,
      RI 02809











**FOR
      IMMEDIATE RELEASE**





**B+H
      Ocean Carriers, Ltd. Announces Unaudited Results for the Six Month and Second
      Quarterly Periods Ended June 30, 2007**





**NEW
      YORK, NEW YORK, August 15, 2007. . . . B+H Ocean Carriers Ltd. (AMEX: BHO)**


today
      reported unaudited net income of $7.3 million or $1.05 per share basic and
      diluted for the six months ended June 30, 2007 as compared to unaudited net
      income of $13.7 million or $1.93 per share basic and $1.87 per share diluted,
      for the six months ended June 30, 2006. EBITDA for the six months ended June
      30,
      2007 was $24.1 million as compared to $23.9 million for the comparable period
      of
      2006. Basic earnings per share calculations are based on weighted average shares
      outstanding of 6,995,999 and 7,082,781 respectively, for the six months ended
      June 30, 2007 and 2006. Diluted earnings per share calculations are based on
      weighted average shares outstanding of 7,304,323 for the six months ended June
      30, 2006. There were no dilutive securities at June 30, 2007.





The
      Company reported unaudited net income of $4.3 million or $0.61 per share basic
      and diluted for the three months ended June 30, 2007, compared to unaudited
      net
      income of $4.8 million or $0.67 per share basic and $0.65 per share diluted,
      for
      the three months ended June 30, 2006. EBITDA for the three months ended June
      30,
      2007 was $12.8 million as compared to $10.6 million for the comparable period
      of
      2006. Basic earnings per share calculations are based on weighted average shares
      outstanding of 7,005,396 and 7,072,107 respectively, for the three months ended
      June 30, 2007 and 2006. Diluted earnings per share calculations are based on
      weighted average shares outstanding of 7,293,538 for the three months ended
      June
      30, 2006. There were no dilutive securities at June 30, 2007.





The
      following is a discussion of our financial condition and results of operations
      for the six month and quarterly periods ended June 30, 2007 and 2006.





***Six
      Months ended June 30, 2007 (unaudited) versus June 30, 2006
      (unaudited)***





***Revenues***





Revenues
      increased $10.0 million (22%) in the six months ended June 30, 2007 over the
      comparable period in 2006. Time-charter equivalent (“TCE”) revenue increased
      $3.6 million or 9% for the six months ended June 30, 2007 over the six months
      ended June 30, 2006. TCE revenue represents gross revenue less voyage related
      expenses (principally fuel and port costs). This measure is used to create
      comparability between time-charter and voyage revenues. The increase in revenue
      is mainly due to proportionately more vessels operating under fixed rate voyage
      charters in the first half of 2007 than in the same 2006 period. Revenue from
      voyage charters is higher due to the fact that it is recorded at the gross
      amount, before voyage expenses, which are the owner’s responsibility under a
      voyage charter. There were 892 voyage days in the six months ended June 30,
      2007
      as compared with 251 in the six months ended June 30, 2006.





The
      Company, through wholly-owned subsidiaries, acquired one combination carrier
      in
      the first quarter of 2006, one Panamax product tanker in the second quarter
      of
      2006 and one medium range (“MR”) product tanker in June 2007. However, it is
      important to note that the Company had offhire related to vessel conversions
      to
      fully compliant double-hulled vessels of 240 days in the six months ended June
      30, 2007. The Company estimates that lost TCE revenue due to offhire for
      conversion is approximately $4.6 million for the six months ended June 30,
      2007.





Other
      revenue includes $0.5 million earned in respect of a profit sharing arrangement
      on one vessel that was recorded in the six months ended June 30, 2007. Other
      revenue of $1.1 million in 2006 was made up of $0.8 million earned in respect
      of
      the combination carrier acquired in 2006, in lieu of time-charter revenue,
      from
      the January 15, 2006 effective date of the purchase until the closing date
      and
      $0.3 million representing settlement proceeds from the Company’s claim against
      Enron for lost time-charter revenue.





*Voyage
      expenses*





Voyage
      expenses increased by $6.4 million (119%) in the six month period ended June
      30,
      2007 as compared with the same period of 2006. This increase is due to the
      fact
      that there were 251 voyage days in the six months ended June 30, 2006 and 892
      voyage days in the same period of 2007. Voyage expenses include port, canal
      and
      fuel charges for which the shipowner is responsible on a voyage charter but
      not
      when a vessel is on either a time or bareboat charter.





*Vessel
      operating expenses*





Vessel
      operating expenses increased $3.2 million from the six month period ended June
      30, 2006 to the same period of 2007. The increase is due to the increase in
      the
      number of vessels in the fleet, as noted above, including those purchased during
      the first half of 2006 which were owned for the full six month period in 2007.
      Operating expenses on a per day basis increased 8% from the first half of 2006
      to the first half of 2007. The increase is predominantly crew related expenses
      and upgrading.





*Vessel
      depreciation and amortization of deferred charges*





Vessel
      depreciation increased $0.8 million and amortization of deferred charges
      increased $1.7 million for the six month period ended June 30, 2007 as compared
      to the comparable period of 2006. This increase is due to the acquisition of
      one
      vessel in March 2006 and one vessel at the end of June 2006 which are
      depreciated for the full six months in 2007 and to the cost of converting MR
      vessels to fully compliant double-hulled vessels. At June 30, 2007, the
      conversion of two vessels had been completed. The conversion of a third vessel
      was completed in early July and the three remaining vessels are scheduled for
      completion in the second half of the year or early 2008.





*General
      and administrative expenses*





Consulting,
      professional and other expenses increased $0.5 million or 22%. The increase
      is
      predominantly attributable to increases in legal and consulting fees and to
      vessel inspection expenses.




*Interest
      expense and interest income*





The
      $1.2
      million (25%) increase in interest expense for the six months ended June 30,
      2007, as compared to the same period in 2006, is due to the increase in debt
      comprised of loans obtained in the third and fourth quarters of 2006 and the
      bonds issued in December 2006. Outstanding debt increased from $170.1 million
      at
      June 30, 2006 to $206.9 million at December 31, 2006. Outstanding debt at June
      30, 2007 was $186.3 million. In addition, the average daily interest rate for
      the six months ended June 30, 2006 was 4.84% versus an average daily rate of
      5.29% for the six month period ended June 30, 2007. The increase in interest
      income of $0.8 million is also due to the increase in interest rates. In
      addition, the average cash balance for the first six months of 2006 was $54.5
      million as compared to the average cash balance for the same period of 2007
      of
      $64.2 million.





*Equity
      in income of Nordan OBO II Inc.*





Equity
      in
      income of Nordan OBO II Inc. of $0.3 million represents income from the
      Company’s 50% interest in an entity which is the disponent owner of a 1992-built
      75,000 DWT combination carrier through a bareboat charter party. Income from
      the
      investment decreased $0.4 million from $0.7 million for the six months ended
      June 30, 2006 due to the fact that the vessel was offhire for approximately
      19
      days in the second quarter of 2007 as a result of main engine damage which
      was
      subject to an insurance claim.





*Gain
      on fair value of interest rate swaps*





The
      Company entered into two interest rate swaps during 2005 which are required
      to
      be marked to market through the Consolidated Statements of Operations. The
      increase in the value of these swaps from January 1, 2007 to June 30, 2007
      was
      $0.2 million.





*Loss
      on fair value of put option contracts*





In
      2006
      and 2007, the Company bought put options to mitigate the risk associated with
      the possibility of falling time charter rates. These put options do not qualify
      for special hedge accounting under US GAAP and as such, the aggregate changes
      in
      the fair value of these option contracts is reflected in the Company’s
      Consolidated Statements of Operations. The unrealized loss on the value of
      the
      contracts totaled $1.2 million for the six months ended June 30,
      2007.





***Quarter
      Ended June 30, 2007 (unaudited) versus June 30, 2006
      (unaudited)***





*Revenues*





Revenues
      from voyage and time charters increased $4.3 million or 18% from the three
      month
      period ending June 30, 2006. The increase in revenue is mainly due to
      proportionately more vessels operating under fixed rate voyage charters in
      the
      second quarter of 2007 than in the same 2006 period. There were 463 voyage
      days
      in the quarter ended June 30, 2007 as compared with 229 in the quarter ended
      June 30, 2006. Revenue from voyage charters is higher due to the fact that
      it is
      recorded at the gross amount, before voyage expenses, which are the owner’s
      responsibility under a voyage charter.





The
      Company had 199 days offhire in the second quarter of 2007 related to conversion
      of three vessels to fully compliant double-hulled chemical/product tankers,
      as
      compared to 72 days of offhire in the second quarter of 2006 related to two
      special surveys and the conversion of one MR tanker to a double hulled vessel.





*Voyage
      expenses*





Voyage
      expenses for the quarter ended June 30, 2007 increased $1.8 million or 47%
      from
      the quarter ended June 30, 2006. The increase is due to there being 463 voyage
      days in the three month period ended June 30, 2007, whereas there were 229
      voyage days during the same 2006 period. Voyage expenses include port, canal
      and
      fuel charges for which the shipowner is responsible on a voyage charter but
      not
      when a vessel is on either a time or bareboat charter.





*Vessel
      depreciation and amortization of deferred charges*





Vessel
      depreciation and amortization of deferred charges increased $0.2 million and
      $1.0 million, respectively for the quarter ended June 30, 2007 over the same
      2006 period. This increase is due to the conversion of MR tankers to fully
      compliant double-hulled chemical/product tankers and to a vessel acquired at
      the
      end of June 2006 which is depreciated for the full quarter in 2007.





*Consulting
      and professional fees and other expenses*





Consulting
      and professional fees and other expenses in the three months ended June 30,
      2007
      increased $0.3 million from the same 2006 period. The increase is due to
      increases in legal and consulting fees and to an increase in travel
      expenses.





*Interest
      expense and interest income*





The
      $0.5
      million (20%) increase in interest expense for the quarter ended June 30, 2007,
      as compared to the same 2006 period, is due to an increase in debt to finance
      the ship acquired in June 2006, the Company’s 50% interest in Nordan OBO II and
      the bonds issued in December 2006. Outstanding debt increased from $170.1
      million at June 30, 2006 to $206.9 million at December 31, 2006. Outstanding
      debt at June 30, 2007 was $186.3 million. In addition, the average daily
      interest rate for the three months ended June 30, 2007 was 5.32% versus an
      average daily rate of 5.07% for the three month the same 2006 period. The
      increase in interest income of $0.3 million in the 2007 quarter is due to an
      increase of $9.7 million in the average cash balance during the three months
      ended June 30, 2007 versus the same 2006 period.





*Equity
      in income of Nordan OBO II Inc.*





Equity
      in
      income of Nordan OBO II Inc, which represents income from the Company’s 50%
      interest in an entity which is the disponent owner of a 1992-built 75,000 DWT
      combination carrier through a bareboat charter party, decreased by $0.4 million.
      The decrease in income from the investment for the three months ended June
      30,
      2007 as compared to the same 2006 period due to the fact that the vessel was
      offhire for approximately 19 days as a result of main engine damage which was
      subject to an insurance claim.





*Gain
      on fair value of interest rate swaps*





The
      Company entered into two interest rate swaps during 2005 which are required
      to
      be marked to market through the statement of income. The increase in the value
      of these swaps from April 1, 2007 to June 30, 2007 was $0.4 million.





*Loss
      on fair value of put option contracts*





In
      2006
      and 2007, the Company bought put options to mitigate the risk associated with
      the possibility of falling time charter rates. These put options do not qualify
      for special hedge accounting under US GAAP and as such, the aggregate changes
      in
      the fair value of these option contracts is reflected in the Company’s statement
      of operations. The unrealized loss on the value of the contracts totaled $0.6
      million for the three months ended June 30, 2007.





***Liquidity
      and Capital Resources***





Cash
      at
      June 30, 2007, amounted to $38.0 million, a decrease of $40.4 million as
      compared to December 31, 2006. The decrease in the cash balance is
      attributable to outflows for investing activities of $26.8 million, primarily
      related to the acquisition of one vessel for cash and to the investment in
      conversion of vessels to fully compliant double-hulled chemical/product tankers
      and to outflows from financing activities of $24.1 million, predominantly the
      payment of long-term debt. These outflows were offset by net inflows from
      operations of $10.6 million.





During
      the six months ended June 30, 2007, outflows for financing activities were
      primarily attributable to payment of mortgage principal and unsecured debt.
      The
      OBO acquired under an unsecured financing arrangement was refinanced using
      mortgage debt in January 2007. In addition, the Company purchased an aggregate
      of 170,050 shares of common stock for treasury, for an aggregate price of $3.1
      million.





During
      the six months ended June 30, 2007, outflows for investing activities were
      attributable to the purchase of one MR product tanker for $19.6 million, to
      vessel conversion costs of $6.1 million and to the investment in put option
      contracts of $1.4 million. This total was offset by income and dividends from
      the Company’s investment in Nordan OBO II of $0.4 million, net.





The
      Company intends to continue its vessel acquisition program to expand its
      presence in its two current sectors, combination carriers capable of
      transporting both wet and dry bulk cargoes, and chemical/product carriers;
      however, there can be no assurance that the Company will be able to purchase
      any
      of such vessels on favorable terms or at all.





The
      Company’s fleet currently consists of seven medium range chemical/product
      tankers, six combination carriers (OBOs) and a 50% interest in another OBO
      and
      two panamax product tankers. Eleven of the vessels are employed under fixed
      contract employment and the remainder are operating in the spot
      market.





We
      provide EBITDA (earnings before interest expense, taxes, depreciation and
      amortization) information as a guide to the operating performance of the
      Company. EBITDA, which is not a term recognized under generally accepted
      accounting principles, is calculated as net income plus interest expense, income
      taxes (benefit), depreciation and amortization, and an adjustment for book
      value
      gains and losses on the sale of vessels. Included in the depreciation and
      amortization for the purpose of calculating EBITDA is depreciation of vessels,
      including capital improvements and amortization of mortgage fees. EBITDA, as
      calculated by the Company, may not be comparable to calculations of similarly
      titled items reported by other companies.





Safe
      Harbor Statement





Certain
      statements contained in this press release, including, without limitation,
      statements containing the words “believes,” “anticipates,” “expects,” “intends,”
and words of similar import, constitute “forward-looking statements” as defined
      in the Private Securities Litigation Reform Act of 1995 or by the Securities
      and
      Exchange Commission in its rules, regulations and releases, regarding the
      Company’s financial and business prospects. Such forward-looking statements
      involve known and unknown risks, uncertainties and other factors that may cause
      the actual results, performance or achievements of the Company, or industry
      results, to be materially different from any future results, performance or
      achievements expressed or implied by such forward-looking statements. Such
      factors include, but are not limited to, those set forth in the Company’s Annual
      Report and filings with the Securities and Exchange Committee. Given these
      uncertainties, undue reliance should not be placed on such forward-looking
      statements. The Company disclaims any obligation to update any such factors
      or
      to publicly announce the result of any revisions to any of the forward-looking
      statements contained or incorporation by reference herein to reflect future
      events or developments.











#
      #
      #








For
      further information, including the Company’s 2006 Annual Report on Form 20F and
      other recent Form 6Ks and press releases, access the Company’s
      website:  www.bhocean.com





Company
      Contact:   John
      LeFrere


917.225.2800




**B+H
                  Ocean Carriers Ltd.****Unaudited
                  Consolidated Balance Sheets****Unaudited**
              
              **Audited**
              
              **Unaudited**ASSETS
              
              **June
                  30, 2007**
              
              **December
                  31, 2006**
              
              **June
                  30, 2006**CURRENT
                  ASSETS:Cash
                  and cash equivalents
              
              $
              38,031,491
              
              
              78,391,028
              
              $
              39,953,172Marketable
                  securities
              
              
              1,106,637
              
              
              990,105
              
              
              353,518Trade
                  accounts receivable, less allowance for doubtful accounts of $120,000
                  at
                  June 30, 2007 and $229,000 at December 31, 2006 and June 30, 2006
              
              
              5,921,354
              
              
              2,532,710
              
              
              1,686,898Inventories
              
              
              3,536,679
              
              
              2,547,776
              
              
              2,449,443Prepaid
                  expenses and other current assets
              
              
              1,716,935
              
              
              1,408,999
              
              
              1,326,567**Total
                  current assets**
              
              
              50,313,096
              
              
              85,870,618
              
              
              45,769,598Vessels,
                  at cost:Vessels
              
              
              341,584,529
              
              
              312,999,593
              
              
              301,998,582Less
                  - Accumulated depreciation
              
              
              (61,325,987
              )
              
              (51,312,468
              )
              
              (42,432,792
              )280,258,542
              
              
              261,687,125
              
              
              259,565,790Investment
                  in Nordan OBO II Ltd
              
              
              10,174,172
              
              
              10,576,398
              
              
              12,182,945Investment
                  in debt securities
              
              
              5,000,000
              
              
              5,000,000
              
              
              -Other
                  assets
              
              
              3,024,765
              
              
              1,070,559
              
              
              1,435,272Fair
                  value of derivative asset
              
              
              1,667,642
              
              
              2,617,744
              
              
              1,442,499**Total
                  assets**
              
              $
              350,438,217
              
              $
              366,822,444
              
              $
              320,396,104LIABILITIES
                  AND SHAREHOLDERS' EQUITYCURRENT
                  LIABILITIES:Accounts
                  payable
              
              $
              10,425,628
              
              
              11,457,925
              
              $
              4,739,908Accrued
                  liabilities
              
              
              5,416,306
              
              
              3,877,579
              
              
              6,152,147Accrued
                  interest
              
              
              919,057
              
              
              1,090,477
              
              
              436,690Current
                  portion of mortgage payable
              
              
              29,475,000
              
              
              39,765,472
              
              
              31,691,000Deferred
                  income
              
              
              6,534,334
              
              
              7,346,190
              
              
              7,170,726Other
                  liabilities
              
              
              202,186
              
              
              150,711
              
              
              158,058**Total
                  current liabilities**
              
              
              52,972,511
              
              
              63,688,354
              
              
              50,348,529Unsecured
                  debt
              
              
              -
              
              
              23,703,908
              
              
              32,760,000Long
                  term debt
              
              
              131,824,538
              
              
              118,450,000
              
              
              105,670,982Bonds
                  payable
              
              
              25,000,000
              
              
              25,000,000
              
              
              -Commitments
                  and contingencies
              
              
              -
              
              
              -
              
              
              -SHAREHOLDERS'
                  EQUITY:Preferred
                  stock, $0.01 par value; 20,000,000 shares authorized;no
                  shares issued and outstanding
              
              
              -
              
              
              -
              
              
              -Common
                  stock, $0.01 par value; 30,000,000 shares authorized;7,557,268
                  shares issued, 6,991,661, 6,964,745 and 6,982,675 sharesoutstanding
                  as of June 30, 2007, December 31, 2006 and June 30, 2006, respectively
              
              
              75,572
              
              
              75,572
              
              
              75,572Paid-in
                  capital
              
              
              92,936,201
              
              
              93,861,215
              
              
              93,962,034Retained
                  earnings
              
              
              56,023,900
              
              
              48,680,252
              
              
              43,596,864Other
                  comprehensive income
              
              
              258,594
              
              
              18,183Treasury
                  stock
              
              
              (8,653,099
              )
              
              (6,655,040
              )
              
              (6,017,877
              )**Total
                  shareholders' equity**
              
              
              140,641,168
              
              
              135,980,182
              
              
              131,616,593**Total
                  liabilities and shareholders' equity**
              
              $
              350,438,217
              
              $
              366,822,444
              
              $
              320,396,104
  **B+H
                    Ocean Carriers Ltd.****Unaudited
                    Consolidated Statements of Operations****For
                    the six**
                
                **For
                    the six**
                
                **For
                    the three**
                
                **For
                    the three****months
                    ended**
                
                **months
                    ended**
                
                **months
                    ended**
                
                **months
                    ended****June
                    30, 2007**
                
                **June
                    30, 2006**
                
                **June
                    30, 2007**
                
                **June
                    30, 2006**Revenues:Voyage,
                    time and bareboat charter revenues
                
                $
                55,075,050
                
                $
                45,055,406
                
                $
                27,753,375
                
                $
                23,427,676Other
                    revenue
                
                
                544,349
                
                
                1,081,596
                
                
                44,887
                
                
                194,921Total
                    revenues
                
                
                55,619,399
                
                
                46,137,002
                
                
                27,798,262
                
                
                23,622,597Operating
                    expenses:Voyage
                    expenses
                
                
                11,851,226
                
                
                5,416,617
                
                
                5,529,511
                
                
                3,752,995Vessel
                    operating expenses, drydocking and survey costs
                
                
                18,494,341
                
                
                15,337,398
                
                
                8,725,686
                
                
                8,602,127Vessel
                    depreciation
                
                
                7,855,342
                
                
                7,037,812
                
                
                3,953,108
                
                
                3,745,428Amortization
                    of deferred charges
                
                
                2,383,249
                
                
                658,542
                
                
                1,281,115
                
                
                277,304General
                    and administrative:Management
                    fees to related party
                
                
                560,876
                
                
                533,482
                
                
                280,438
                
                
                270,741Consulting
                    and professional fees, and other expenses
                
                
                2,499,911
                
                
                2,044,744
                
                
                1,281,426
                
                
                973,576Total
                    operating expenses
                
                
                43,644,945
                
                
                31,028,595
                
                
                21,051,284
                
                
                17,622,171Income
                    from vessel operations
                
                
                11,974,454
                
                
                15,108,407
                
                
                6,746,978
                
                
                6,000,426Other
                    income (expense):Equity
                    in income of Nordan OBO II
                
                
                347,774
                
                
                753,302
                
                
                (48,984
                )
                
                321,492Interest
                    expense
                
                
                (5,869,421
                )
                
                (4,695,244
                )
                
                (3,097,430
                )
                
                (2,572,083
                )Interest
                    income
                
                
                1,891,434
                
                
                1,091,344
                
                
                851,633
                
                
                585,639Gain
                    (loss) on trading marketable securities
                
                
                13,135
                
                
                (9,383
                )
                
                18,815
                
                
                (134,959
                )Gain
                    on fair value of interest rate swap
                
                
                196,207
                
                
                1,442,499
                
                
                434,480
                
                
                559,470Loss
                    on fair value of put option contracts
                
                
                (1,209,935
                )
                
                -
                
                
                (632,397
                )
                
                -Total
                    other expenses, net
                
                
                (4,630,806
                )
                
                (1,417,482
                )
                
                (2,473,883
                )
                
                (1,240,441
                )Net
                    income
                
                $
                7,343,648
                
                $
                13,690,925
                
                $
                4,273,095
                
                $
                4,759,985Basic
                    earnings per common share
                
                $
                1.05
                
                $
                1.93
                
                $
                0.61
                
                $
                0.67Diluted
                    earnings per common share
                
                $
                1.05
                
                $
                1.87
                
                $
                0.61
                
                $
                0.65Weighted
                    average number of common shares outstanding:Basic
                
                
                6,995,999
                
                
                7,082,781
                
                
                7,005,396
                
                
                7,072,187Diluted
                
                
                6,995,999
                
                
                7,304,323
                
                
                7,005,396
                
                
                7,293,538
  **B+H
                      Ocean Carriers Ltd.****Unaudited
                      Consolidated Statements of Cash Flows****For
                      the six**
                  
                  **For
                      the six****months
                      ended**
                  
                  **months
                      ended****June
                      30, 2007**
                  
                  **June
                      30, 2006**CASH
                      FLOWS FROM OPERATING ACTIVITIES:Net
                      income
                  
                  $
                  7,343,648
                  
                  $
                  13,690,925Adjustments
                      to reconcile net income to net cash provided by operating activities:Vessel
                      depreciation
                  
                  
                  7,855,342
                  
                  
                  7,037,812Amortization
                      of deferred charges
                  
                  
                  2,382,303
                  
                  
                  658,542Gain
                      (loss) on fair value of marketable securities
                  
                  
                  (13,135
                  )
                  
                  9,383Loss
                      (gain) on fair value of derivative assets
                  
                  
                  1,013,728
                  
                  
                  (1,442,499
                  )Compensation
                      recognized under employee stock plans
                  
                  
                  16,892
                  
                  
                  -Changes
                      in assets and liabilities:(Increase)
                      decrease in trade accounts receivable
                  
                  
                  (3,388,644
                  )
                  
                  571,674Increase
                      in inventories
                  
                  
                  (988,903
                  )
                  
                  (1,594,357
                  )Increase
                      in prepaid expenses and other assets
                  
                  
                  (307,936
                  )
                  
                  (115,652
                  )(Decrease)
                      increase in accounts payable
                  
                  
                  (1,032,297
                  )
                  
                  713,989Increase
                      in accrued liabilities
                  
                  
                  1,538,727
                  
                  
                  4,404,238Decrease
                      in accrued interest
                  
                  
                  (171,420
                  )
                  
                  (17,930
                  )(Decrease)
                      increase in deferred income
                  
                  
                  (811,856
                  )
                  
                  1,755,310Increase
                      in other liabilities
                  
                  
                  51,475
                  
                  
                  98,222Payments
                      for special surveys
                  
                  
                  (2,878,988
                  )
                  
                  (2,974,409
                  )Total
                      adjustments
                  
                  
                  3,265,288
                  
                  
                  9,104,323Net
                      cash provided by operating activities
                  
                  
                  10,608,936
                  
                  
                  22,795,248CASH
                      FLOWS FROM INVESTING ACTIVITIES:Purchase
                      and investment in vessels
                  
                  
                  (19,600,000
                  )
                  
                  (16,190,000
                  )Investment
                      in vessel conversions
                  
                  
                  (6,105,948
                  )
                  
                  (1,004,165
                  )Investment
                      in Nordan OBO II Inc.
                  
                  
                  (347,774
                  )
                  
                  (13,932,945
                  )Return
                      of capital from Nordan OBO II Inc.
                  
                  
                  750,000
                  
                  
                  1,750,000Investment
                      in put option contracts
                  
                  
                  (1,431,780
                  )
                  
                  -(Increase)
                      decrease in marketable securities
                  
                  
                  (103,400
                  )
                  
                  204,664Net
                      cash used in investing activities
                  
                  
                  (26,838,902
                  )
                  
                  (29,172,446
                  )CASH
                      FLOWS FROM FINANCING ACTIVITIES:Payments
                      for debt issuance costs
                  
                  
                  (616,630
                  )
                  
                  (65,345
                  )Mortgage
                      proceeds
                  
                  
                  27,000,000
                  
                  
                  -Purchase
                      of treasury stock
                  
                  
                  (3,094,737
                  )
                  
                  (2,073,836
                  )Issuance
                      of treasury shares
                  
                  
                  200,690
                  
                  
                  75,410Issuance
                      of common stock, net of issuance costs
                  
                  
                  -
                  
                  
                  (130,020
                  )Payment
                      of unsecured debt
                  
                  
                  (31,402,960
                  )
                  
                  (440,490
                  )Payments
                      of long-term debt
                  
                  
                  (16,215,934
                  )
                  
                  (11,863,000
                  )Net
                      cash used in financing activities
                  
                  
                  (24,129,571
                  )
                  
                  (14,497,281
                  )Net
                      decrease in cash and cash equivalents
                  
                  
                  (40,359,537
                  )
                  
                  (20,874,479
                  )Cash
                      and cash equivalents, beginning of period
                  
                  
                  78,391,028
                  
                  
                  60,827,651Cash
                      and cash equivalents, end of period
                  
                  $
                  38,031,491
                  
                  $
                  39,953,172