American International Petroleum Wins Tender for
Shagyryl-Shomyshty Gas Field in Kazakhstan
Proven Recoverable Gas Reserves Exceed One Trillion Cubic Feet
NEW YORK--(BUSINESS WIRE)--Feb. 22, 1999-- American International Petroleum Corporation (NASDAQ- NMS: AIPN)
announced today it was officially notified by the Kazakhstan government's State Investment Committee that it won the tender for
the Shagyryl-Shomyshty gas field in western Kazakhstan. The gas field is estimated by the Kazakhstan government to have
approximately 1.14 trillion cubic feet of proven recoverable gas reserves. This is equal to 190 million barrels of oil using a
conversion of six thousand cubic feet of gas per barrel of oil. Fifty-eight gas wells, which are currently shut-in, have been drilled to
delineate the 200,000 acre gas field.
The Company anticipates signing a license agreement with the Kazakhstan government for 100% ownership of the
Shagyryl-Shomyshty field very shortly and will provide additional details concerning the license at that time.
The Shagyryl-Shomyshty field, discovered by drilling in the area from 1966-1969, is located in the North Usturt Basin adjacent to
the northeastern portion of the Company's License No. 953, and approximately 40 miles north of the Altai No. 1 gas well recently
drilled by the Company on the Chikuduk structure.
Chairman and CEO Dr. George Faris said, ''We are very confident about the future of Kazakhstan and are pleased to have won
this tender. Our Kazakhstan strategy includes providing the Company with proven reserves this year and starting gas production
during calendar year 2000. Due to the close proximity of the Chikuduk and the Shagyryl-Shomyshty fields we believe they could
easily share a main transfer pipeline and facilities for gas treatment and compression.''
The Srednyaya Azia-Center pipeline system, about 65 miles to the west, contains three gas pipelines with a combined capacity of
about 6.5 billion cubic feet per day, and the Bukhare Ural pipeline, about 130 miles to the east, has a capacity of about 2 billion
cubic feet per day.
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 the Republic of Kazakhstan, and in refining, marketing and
transportation of its refined products in the United States.
The matters discussed herein are forward-looking statements. These statements involve risks and uncertainties, such as timely
availability of products and services, as set forth in the Company's filing with the Securities and Exchange Commission. These risks
and uncertainties could cause actual results to differ materially from any forward-looking statements made herein.
|
