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

To: qdog who wrote (4779)	11/6/1997 10:40:00 PM
From: NoMoney	Read Replies (1) \| Respond to of 11888

qdog, Doesn't it seem likely that the real effort is to drill and show OIL. AIPN stated from the beginning that this was too large a concession to take on alone. But if they can do as stated and meet the obligatory drilling and seismic to prove reserves, then, if by that time noone has jumped on board, we can be sure that many will want to. All things considered this is a Win Win Situation now that more financing is secured. When Oil shows then financers will throw money at them. Peace, NoMoney

To: qdog who wrote (4779)	11/6/1997 11:24:00 PM
From: Juan Dominguez	Read Replies (2) \| Respond to of 11888

I never said, or meant to imply that AIPN would use the $13M in their coffers to produce oil or drill a well. I know each well takes about $10M to drill(assuming no mistakes) and multiply that by 50-100 wells needed to be drilled in each field to get maximum production. Heck, the Tengiz field, I believe has over 200 wells drilled with another 800 to go to get production up to the target 700,000/B/D. My thinking is that a major prospective JV partner would look at their balance sheet and see that they have just under $3M in cash and burning it at a rapid clip per day. They will then know that their competitive negotiation stance is in their favor, because they figure AIPN will run out of cash before the end of the year, therefore, in this scenerio AIPN would be more inclined to accept a quick cheaper deal just to get the cash in order to keep the creditors at bay and survive. HOWEVER, with the current $13M in their coffers they could have staying power til the middle of 1998, then the full cash flow generated from the refinery should kick in by then. Its pure negotiation strategy and George Faris gets an A+ in my book. Regards to all Juan