Monday October 26, 11:04 am Eastern Time
Company Press Release
American International Petroleum to Commence Drilling in Kazakhstan
Altai No. 1 Well To Be Spudded By November 10, 1998
NEW YORK--(BUSINESS WIRE)--Oct. 26, 1998-- American International Petroleum Corporation (Nasdaq NMS: AIPN - news) today announced it has completed negotiation of service contracts for the drilling, testing and completion of its first development well, Altai No. 1, on its Kazakhstan License No. 953. Altai No. 1 will be spudded on or about November 10, 1998 and is expected to reach a depth of about 3,000 feet to test the upper and lower Eocene formation.
Altai No. 1 is the first well to be drilled by the Company on the Altai seismic anomaly, estimated by independent consultants to have the potential of containing 742 billion cubic feet of gas. The well, located about 140 miles south of Aktubinsk, is being drilled on the largest of eight seismic anomalies identified by the Company's recent seismic program over the area. Altai No. 1 will complement the results of six other wells previously drilled on the anomaly, each of which indicate the presence of commercial quantities of gas.
Mobilization of construction equipment to the well site will take place this week, followed next week by the drilling rig equipment and camp. A Kazakhstan drilling company, Aktubinskoye Drilling, a division of Aktubinsk Nafte Gas, has been contracted to drill Altai No. 1. Perforating, cementing and testing of the well will be provided separately by two United States based corporations which furnish such services worldwide.
The Altai No. 1 well and subsequent test program is designed to validate the previous well results and establish commercial rates of production. Success of Altai No. 1 will support further delineation of the commercial potential of gas in the remaining seven seismic anomalies. The aggregate potential of the eight anomalies was estimated by independent consultants to have recoverable gas reserves of about 1.1 trillion cubic feet of gas.
The Company is currently having discussions with several companies regarding contractual arrangements to assist in developing the necessary infrastructure and marketing of gas should results of this drilling program prove to support commercialization.
American International Petroleum Corporation is a diversified petroleum company which, through various wholly owned subsidiaries, is involved in oil and gas exploration and development in Kazakhstan, and in refining, marketing and transportation of petroleum products in the United States.
Statements herein may be identified as forward-looking for purposes of safe harbor provisions under Section 21E of the SEC Act of 1934. Such statements relating to the Company's future business are subject to risks and uncertainties that could cause actual results to differ materially from those statements, and other risks and factors, identified in the Company's SEC filings.
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Contact:
Michael Dodge
212.688.3333
www.aipcorp.com |
