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American International Petroleum Announces Financial Terms of its Acquisition of 70% Working Interest Kazakstan License
Business Wire - July 16, 1997 10:12
AMERICAN-INTL-PETROLEUM AIPN %NEW-YORK %ENERGY %OIL %GAS %MERGERS %ACQ V%BW P%BW
NEW YORK--(BUSINESS WIRE)--July 16, 1997--
Cost Represents Less Than 10% of the Company's Outstanding Shares
American International Petroleum Corp. (NASDAQ: AIPN), today announced that the cost to acquire its 70% working interest in the 4.7 million acres Kazakstan Exploration License No. 953 (Oil) from MED Shipping and Trading Ltd. (MED) was 1.5 million shares to be held in trust which may not be sold until the stock reaches $5 per share, 500,000 shares to be held in trust which may not be sold until the stock reaches $2 per share, 500,000 warrants to purchase the company's stock at $2 per share, 1.2 million shares of common stock and $400,000 in cash. Pursuant to its agreement with MED of April 22, 1997, the company made a partial payment of cash and stock and intends to make the final payment by July 28, 1997. MED's president stated that MED intends to be a long term shareholder and strongly supports AIPC's approach to develop the license's huge reserve potential. The company said the five year minimum work program required by the license calls for the company to acquire and process 3,000km of new seismic, reprocess 500km of existing seismic, and drill 6,000 linear meters. In addition, the company assumed an obligation to pay the Kazakstan Government three yearly payments of $200,000 each beginning July 1998 for the purchase of existing seismic and geological data on the block. The company currently expects to finance its obligations under the license primarily from the proceeds it received from the recent sale of its operations in Latin America, anticipated cash flow from the Refinery operations expected to commence during the later part of the third quarter of 1997, and from partnerships with industry groups. The above statements are forward-looking, and are based on estimates and current expectations. They involve certain risks and uncertainties detailed from time to time in the company's SEC reports. Actual results may differ materially. American International Petroleum Corp. is an international exploration and production company engaged in exploration of oil and gas projects in Kazakstan and in refining in Louisiana.
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