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

To: Laserbones who wrote (4034)	10/24/1997 7:13:00 PM
From: Cathi Wierzbicki	Read Replies (1) \| Respond to of 11888

Greg: Analysts who have written reports on AIPN have stated that the typical value of "potential" reserves is $.50 to $1.00. I would be interested if you have any info that suggests otherwise. I have also read that proven reserves are valued in the neighborhood of $6.00 per barrel. Does this fit with what you have read? My question was if there is as much as a $5.50 per barrel difference between "potential" and "proven" reserves; and, if Huddleston has already, using "scientific" seismic studies reported 1.1 billion "potential" barrels in only one small area of the concession; and if Wavetech has done further evaluation of the seismic done on other areas of the concession and delivered their report to the parties in the negotiations -- Then how could it only cost a future acquirer "a few hundred million" more to wait for proven reserves? It would seem to me the math would suggest it would cost them many billions of dollars to wait. I am sorry if asking you this question put you on the defensive. I have no opinion, Greg, as to when a JV will be announced. What matters to me is what is the potential value of the stock, if and when, a deal is culminated. As far as your opinion concerning whether acquirers would do a deal based on these seismic studies, or wait until the oil is proven -- ("There is absolutely no reason why they won't sit back and be patient."), I would tend to disagree. I think between billions of dollars difference in the acquisition price coupled with the fact that one of their competitors may beat them to the deal, they have significant motivation to try and strike a deal as cheaply and quickly as possible. Cathi