EXHIBIT 2.3

                 THIRD AMENDMENT TO PURCHASE AND SALE AGREEMENT
                              DATED MARCH 30, 2007











                 THIRD AMENDMENT TO PURCHASE AND SALE AGREEMENT

         This THIRD  AMENDMENT TO PURCHASE AND SALE AGREEMENT (the  "Amendment")
is dated  as of  March  30,  2007,  by and  between  Galaxy  Energy  Corporation
("Galaxy"),  Dolphin  Energy  Corporation  (hereinafter  jointly  referred to as
"Seller" or "Party") and PetroHunter  Operating Company ("Buyer" or "Party") and
PetroHunter Energy Corporation. Buyer, Seller and PetroHunter Energy Corporation
may be referred to herein collectively as "Parties".

         In connection with PetroHunter Energy  Corporation's  efforts to obtain
financing,  the Parties  agree to amend the Purchase  and Sale  Agreement by and
between the Parties,  dated  originally  December 29, 2006,  and last amended on
February 28, 2007, (the "Purchase and Sale Agreement") as follows:

         1. Section 2.7 of the Purchase and Sale  Agreement  shall be deleted in
its entirety, and replaced with the following:  "The Closing shall take place on
a mutually  agreeable  date on or before April 30, 2007 (with the actual date of
Closing being the "Closing Date"). The Closing will be held at 10:00 a.m. at the
offices of Buyer at 1875 Lawrence Street, Suite 1400, Denver, Colorado."

         2. The  penultimate  sentence  in  Section  2.3 shall be deleted in its
entirety,  and  replaced  with the  following  two  sentences:  "Any  Party  may
terminate this Agreement, effective upon written notice to the other Parties, if
the  Closing  has not  occurred  by April 30,  2007.  If the Seller is unable to
obtain the consent of its senior  secured  lenders to the sale of the Properties
under the  specific  terms of this  Agreement,  the  Seller may  terminate  this
Agreement by giving  written  notice of such  termination  to the Buyer no later
than ten days prior to the Closing,  accompanied by documentary evidence of such
senior secured lenders' written non-consent."

         Defined terms used in the Purchase and Sale Agreement are  incorporated
herein by reference.

         Except as set forth in this Amendment,  all terms and conditions of the
Purchase and Sale Agreement are to remain in full force and effect.


         THIS THIRD AMENDMENT TO PURCHASE AND SALE AGREEMENT is executed by each
Party to be effective as of the date first captioned above.


DOLPHIN ENERGY CORPORATION                   PETROHUNTER OPERATING COMPANY



By:      /s/ MARC E. BRUNER                  By:   /s/ DAVID E. BRODY
    ---------------------------------           --------------------------------
         Marc E. Bruner, President                David E. Brody, Vice President
                                                  and General Counsel

GALAXY ENERGY CORPORATION                    PETROHUNTER ENERGY CORPORATION



By:   /s/ Christopher S. Hardesty            By:  /s/ David E. Brody
   ----------------------------------           --------------------------------
      Christopher S. Hardesty                    David E. Brody, Vice President
      Senior Vice President and                  and General Counsel
      Chief Financial Officer