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

To: qdog who wrote (7526)	2/24/1998 11:46:00 AM
From: DEER HUNTER	Read Replies (1) \| Respond to of 11888

Good one QDOG...lol. Humor is good.....veryyyyy good. Good luck to you. DH

To: qdog who wrote (7526)	2/24/1998 11:46:00 AM
From: taxikid	Respond to of 11888

well take 2 quarts and call oildoc in the am.. taxi

To: qdog who wrote (7526)	2/24/1998 12:02:00 PM
From: Terry Jackson	Read Replies (2) \| Respond to of 11888

Qdog, I'd be very interested in your take on this note from the Yahoo thread. Subj: To t75rsj1 By: Neftegas Date: Feb 23 1998 10:35 P.M PST Reply To: Msg. 1964 by t75rsj1 Following are my comments to the news release on the production agreement that you included in your note. I will reference my comments to the paragraph number and the line number in your note. I hope that this is not too hard to follow. Paragraph 1, Line 5 This states that this is clearly an exploration agreement only. Paragraph 3, Line 5 - 6 This states that they can get a production liscense "after" a commercial discovery. This shows that they do "not" have a production liscense now, and even if they make a discovery, they currently have no right to produce it. Paragraph 4, Line 3 Royalty up to 26% is excessively high. I have not seen another contract in Kazakhstan with anywhere near this royalty rate. Paragraph 4, Line 4 - 5 This point is so critical that I will cut it directly into this note. "...will be negotiated and defined later in the production agreement with the government." This clearly states that the critical terms will be negotiated and defined later. This is an really bad deal. The way it is set up, AIPN could go out, explore and perhaps discover oil. If successful, they will then have to go and negotiate the production agreement, after teh discovery is made. AIPN will have absolutely no leverage. They could find a billion barrels of oil, but have it be totally worthless because they could not get reasonable terms from the government. There is NO serious company in the western world that would proceed with serious exploration plans without a finalized production agreement. finding oil, is not the big concern of AIPN, this deal is. In my opinion, this is the key to the whole AIPN play. I hope that this is of some assistance.