Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Juan Dominguez who wrote (4786)	11/7/1997 12:07:00 AM
From: Sycamore	Respond to of 11888

Juan, Very good answer. It's not only George Faris that must be given an A+ Mr. Dominguez deserves an A+ as well. I completely agree, with the cash at hand to finance a few months of work whether the real intention is to actually drill the oil or not, it gives the company a balanced position to negotiate from strenth and more room to maneuver as desired. Just want to add to your answer to Qdog that we should always remember that AIPC is on the driver seat here. Why, because AIPC holds the trump card; the license to the concession. So, the issue of whether AIPC is big or rich enough to lead the discussion or gets its way irrelevant. Any interested major oil company, I don't care which one Exxon, Shell, Amoco or British Petroleum they'r all the same, if it wants to be a part of the deal or part/full control of the concession; it must first pay the RIGHT PRICE. As simple as that. Good night everyone! sycamore

To: Juan Dominguez who wrote (4786)	11/7/1997 6:51:00 AM
From: qdog	Respond to of 11888

Correct me if I'm wrong, but aren't they now diluting themselves at this point with more stock. I'd stike the deal now for 60-100 mil. They will then execrcise all the other warrants outstanding (as the price would go abouve 8). The outlay for a well will also reduce as the cost will be shared. (35% of $10 mil is 3.5 mil per well) I figure they would then have ~75-125 mil in cash and then be able to obtain additioanl bank financing. That is alot of moeny to do initial concession requirements, delineation of a discovery and leading up to a declaration of commericialbility. This is a far bigger coffer and buffer's them not hitting a well on the first try. When they hit a significant field and show actual reserves, they then can raise the money through stock offering at higher prices and sell another 10% at a higher price.