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

To: Cathi Wierzbicki who wrote (4042)	10/24/1997 11:15:00 PM
From: Laserbones	Read Replies (1) \| Respond to of 11888

It's interesting to take a look at the current reserves for the large oil cos. They sure do seem to have alot of oil, and there's millions of acres pumping every day. Of course all unrecovered reserves are finite, and there will come a day when the last barrel of oil hits the cracking tower, but I have yet to see-read-hear any good argument for why these oil companies are in such a rush to sign with aipn. Investors in aipn (us) want this to happen soon, and nearly all arguments are biased now. If aipn's license is truly worth these huge numbers on potential reserves please tell me why this company was able to secure this concession for absolute peanuts. This has been brought up before on this thread and never answered. I don't buy it that aipn was just walkin' along the road and accidently discovered the 100 pound gold nugget. There is literally a ring of producing fields surrounding aipn's holding. Those cos might have guessed wrong with the lesser reserves, but then again they might have been right. There also has not been any solid arguments that support an immediate JV. No, I do not think there will be any significant JV until there is a much better handle on what may or may not be sitting under the ground. And during this quiet period this co needs to vastly improve its cash position. I stand by a minimum of 2 to 3 months before any JV is announced. And if it happens sooner you can all laugh at what a knuckle head I am. (-:-) Greg

To: Cathi Wierzbicki who wrote (4042)	10/25/1997 7:13:00 AM
From: qdog	Read Replies (1) \| Respond to of 11888

Tengiz was discovered and proven by the Russians. Chevron and others bought into a proven project. Proven reserves still can leave upwards to 50% in the ground. You can extract part of that through various expensive techniques such as acidizing, steam flooding, what flooding, gas reinjection and other methods. If the field has 1 billion "proven" it may only be 500 million recoverable thru normal means depending on the oil bearing zones and their geological makeup. Not seeing the agreement, but based on others, the partners have up to 5 years to drill and acquire siesmic. By that time they must relinquish 90% for re-auction. That doesn't mean they can exploit before then, IMO. There is more than likely a provision in the agreement that any discovery must be declare commericial by the government. More than likely, they will have to declare their % before they can produce.