<<How does the May 12 article state to you that AIPN has any activity in Kazakstan ? >>
Here's how, Sergio. Let's let the "idiot investors" decide for themselves whether the May 12 release supports the assertion that AIPN "has any activity in Kazakstan":
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.
Copyright 1997, Business Wire. All of the releases provided by Business Wire are protected by copyright and other applicable laws, treaties and conventions. Information contained in the releases is furnished by Business Wire's members, who are solely responsible for their content, accuracy and originality. All reproduction, other than for an individual user's reference, is prohibited without prior written
permission.
Now, in addition to the contents of the rest of the release, the fact that AIPN had set up a subsidiary strongly suggests to this "idiot investor" that they were, as of May 12, quite busy securing their interests in Kazakstan. Any other "idiots" out there want to comment?
<< Go back and read the prvious news releases from AIPN over the past two years that have turned out to be dead ends. >>
I did. How do you sell your SA interests for $20 million in cash and stock to a publicly traded Canadian company (Toronto Exchange) if the SA interests were "dead ends" as you say?
<< There was nothing in this news release that would lead me to believe that this would be anything different. >>
Did you call the company with your doubts as to the veracity of the May 12 release, or did you, as I suspect, automatically write it off as bs?
<<The news release was referring to potential rights. >>
I do not see any reference to "potential rights" anywhere in the press release, do you? If, by chance, you are referring to the part about the necessity of the transfer of the license from the Kazakstan government to MSUP, well , you must know by now that that transfer was officially announced last week and the terms of AIPN 70% interest in MSUP were disclosed as well.
<<You have got to be kidding. They sold their S.A. properties, their only source of revenue because they never stay on the same business plan for very long.>>
Sorry, Sergio, I tried to let you in on some information that was shared with me last week to explain why they abruptly sold their SA interests in favor of Kazakstan but you don't seem to want to listen.
<<BTW Where did the cash from that sale go ?>>
Well, half of it was in stock in the acquiring company, about $2 million was spent to re-tool the Ashalt factory to meet Year 2000 Federal standards, about $400,000 was paid to MSUP as part of the 70% deal, and I assume the rest is operating capital. How is it that with your "due diligence" you didn't know all this...oh, I forgot, you don't believe in ordering Investor packages or talking directly to the company and its reps. You'd rather just bad mouth them based on information that goes back two years. Interesting.
My conclusion is that you have intentionally tried to mislead people on this thread with half-truths and outright misrepresentations. By the way, I have often found that when someone starts using insulting language to make his case, it is usually a clear sign of weakness.
Cheers...Faris
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