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Gold/Mining/Energy : American International Petroleum Corp -- Ignore unavailable to you. Want to Upgrade?

To: t36 who wrote (3897)	10/22/1997 12:11:00 AM
From: faris bouhafa	Respond to of 11888

It occurred to me today that, in the midst of all the heated speculation abot AIPN's partner, I had overlooked a very important componant to this deal. Last summer, AIPN held a public meeting in New York City which was attended by about 200 people many of whom were from the financial community. At the outset of the meeting, George Faris explained how AIPN had come to be involved in this deal with the Kazak partners. He gave an up-date as to where they were in the over-all project. Faris explained that what they had received to date was an exploration license from the government. He said the next step would be the issuance of the "production license" but explained that that would require negotiations regarding the tax rate & royalty rates to be paid to the government. He expressed a great deal of confidance in his Kazak partners' (one was present) ability to negotiate the best possible rate and indicated that the production license talks should be completed by October. Now, it stands to reason that a major oil company is not going to hand over the kind of money we have all been talking about for the rights to produce all or part of this concession without having first secured some guarantees re: the takes and royalties they will have to pay. Those are very important considerations when you are trying to predict future profits. So, basicly, there can be no announcement about a JV until there has first been an announcement concerning the signing of a Production Agreement with the government of Kazakhstan. In my opinion, that will be the next press release and I expect to see it before the end of the month. More important, that release, while not exactly what we are looking for, will be very positive news that will provide the "smart" money with a good excuse to continue seriously buying AIPN stock without fear of being accused of trading on inside information. They will be trading on publicly-released news.... but not on the truly big news that will follow shortly thereafter.. When we see this press release it will be the signal that the full story is about to unfold....that the light has turned "green" for a JV announcement. Hopefully, everybody will have secured their position before that release hits the wires..If not, time is running out Cheers...Faris