AIPN Buy Back !!! American International Petroleum to Buy Back Balance of 6% Convertible
Debentures; Investor Agrees To "Stand Still" Pending Closing
Business Editors
NEW YORK--(BUSINESS WIRE)--Dec. 15, 1999--American International
Petroleum Corporation (NASDAQ NMS: AIPN) announced today it has signed
an agreement with an investor to buy back the investor's entire
outstanding balance, totaling approximately $3 million of the 6%
secured convertible debentures on or before January 12, 2000.
The agreement calls for the Company to purchase, for cash, the
principal amount of the debentures outstanding held by the investor,
plus a 15 percent premium. Under the terms of the agreement the
investor has agreed not to convert any of the outstanding debentures
before the closing unless the Company's common stock on the NASDAQ
market is greater than $1.25 per share. Also, the investor has agreed
not to sell any of the Company's common stock, long or short, through
January 31, 2000, at a price that is less than $1.25 per share.
American International Petroleum Corp. is a diversified petroleum
company which, through various wholly-owned subsidiaries, is involved
in oil and gas exploration and development in the Republic of
Kazakhstan, and in refining, marketing and transportation of its
refined products in the United States.
The Company's wholly-owned subsidiary, American International
Petroleum Kazakhstan, owns two licenses in the Republic of Kazakhstan.
License 1551, the Shagyryl-Shomyshty gas field, in which it has 100%
interest, has technically proved reserves of 450 billion cubic feet of
gas as independently estimated by Ryder Scott Co., and a 70% working
interest in License 953, a 4.7 million acre exploration license
immediately south of License 1551.
--30--sm/ny*
CONTACT: American International Petroleum, New York
Michael Dodge
212.688.3333
or
KCSA, New York
Bob Giordano
Joseph Mansi
212.682.6300
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