AMERICAN INTERNATIONAL PETROLEUM PURCHASES 70
PERCENT WORKING INTEREST IN 4.7 MILLION ACRE
CONCESSION IN KAZAKHSTAN BUSINESS EDITORS NEW
YORK--(BUSINESS WIRE)--MAY 12, 1997-- INDEPENDENT
ESTIMATES OF
NEW YORK--(BUSINESS WIRE)--May 12, 1997--
Independent estimates of potential recoverable reserves exceed 450 million barrels from 6
structures; 10 additional structures are being evaluated
American International Petroleum Corp. (NASDAQ NMS: AIPN) announced today it has
signed an Agreement with a German based company, MED Shipping & Trading S.A. (MED)
for the purchase of a 70 percent working interest in a 4.7 million acre concession in
Kazakhstan for an undisclosed amount of stock and cash. The License Area is located in
western Kazakhstan about 125 miles Southeast of Chevron's multi-billion barrel Tengiz Oil
field and the Caspian Sea. The Area is bordered to the South by Elf Aquitaines' License, and
to the West by both Oryx/Exxon License and AMOCO License. Preliminary evaluation by
the company's independent petroleum engineering consulting firm indicates that potential
recoverable reserves from 6 structures, located in the western half of the License, could be as
much as 458,000,000 barrels from Jurassic Age sandstones. Ten additional structures have
been identified in the License Area, but have not yet been evaluated.
Regional seismic on the eastern half of the License Area indicates additional structures, the
largest of which measures about 50 Kms in length. The Kazakhstan Government drilled one
well in this structure to the top of the feature, which blew out with gas and condensate such
that no additional evaluation was possible from the well. The company believes that this
structure, whose potential reserves are not yet estimated, could provide the largest potential
deposit in the License Area. The company is continuing its evaluation of the area and will
expand its evaluation program with the release of additional data from the government.
The area is conducive to providing various sales options for any commercial oil or gas
discovery from the License site since there are several oil and gas pipelines which cross the
area. The existing infrastructure permits rapid development of any commercial production and
more importantly provide flexibility in securing acceptable sales markets. Production can be
sold North to Russia, Finland and the Atyrau Refinery, and/or South through the Caspian Sea
port at Aktau for export abroad. MED had received a 90 percent working interest from the
original license holder Scientific-Industrial Firm DANK TOO (DANK) a private Kazakhstan
company. A joint venture limited liability company, MED Shipping Usturt Petroleum (MSUP)
has been formed to manage the license operations. AIPC will own 70 percent of MSUP and
will operate the concession and finance the work program to explore the area. The formality
of governmental approval is required for the transfer of the license from DANK to MSUP.
The license transfer to MSUP will be executed with the registration of AIPC's wholly owned
subsidiary AMERICAN INTERNATIONAL PETROLEUM KAZAKHSTAN which will
handle all of AIPC's operations in the country.
American International Petroleum Corp. is engaged in oil and natural gas exploration in
Kazakhstan, and refining in Louisiana.
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