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

To: DEER HUNTER who wrote (6517)	1/7/1998 2:29:00 PM
From: taxikid	Read Replies (1) \| Respond to of 11888

preparing for dentistry listening to bach's concerto for violin in E major.. about ready to snore.... taxi~ oh buy l;ow sell high..is that what you mean;0>

To: DEER HUNTER who wrote (6517)	1/7/1998 4:02:00 PM
From: Laserbones	Read Replies (2) \| Respond to of 11888

Remember this: "...American International Petroleum Corporation...Announced today that it has completed a $10.0 million financing to provide funds for its oil and gas exploration operations in Kazakstan and asphalt operations in Louisiana. The transaction was financed by significant institutional investors in the form of one-year 14% convertible Notes which are redeemable by the company on April 15, 1998. After April 15, 1998, the Notes are convertible according to a set formula. However, if the Company's stock exceeds $8.33/share, the Notes may be convertible after February 23, 1998 at $6.25/share. In connection with the placement of the Notes, the company issued three year warrants to purchase 1,700,000 shares of the company's common stock @ $6.25 per share." Adding this to the earlier rounds of the same type of financing, there's potentially a large chunk of shares--over 10% of total currently out if I've done my math right--that might get dumped on the market. If the Chikuduk data is released in the next few weeks and the stock makes a nice jump above 8, shareholders must be concerned about this. These institutional investors (we know who they are) can make a real nice return in an extremely short time. Does anyone believe aipn will head off any attempts at conversion given their present cash state while also spending on the seismic and getting exploratory well locations up and running?--aipn has stated that initial wells should be up first quarter (although it does appear second quarter is more probable). Is Aipn absolutely banking on a JV based on the soon to be released seismic? If they do not get even a modest JV that at least covers these initial exploratory well locations, their only source of cash is the refinery (and of course additional outside financing). Wasn't there a news release near end of last year in which the company stated they were in negotiations with a bank to obtain non-equity financing? This is not being a downer on aipn, but the chance that some serious dilution is heading our way cannot be dismissed. It's possible unless some major things take place very soon. Anyone wants to point out how I'm missing the big picture go right ahead. Greg