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

To: Terry Jackson who wrote (8830)	6/29/1998 6:55:00 PM
From: DRRISK	Read Replies (5) \| Respond to of 11888

Thread, Attended the meeting and was generally impressed by the tenor of the future for our company. We were hammered over the head that the Refinery will be the little engine that could and that the road to hell is paved with Asphalt and that Aipn will be there to make it a four lane highway. We are an Integrated Oil Company that can take advantage of both sides of the price of Crude and that we signed a deal with Mexico to get crude at $6.00 barrel and that this is a great deal and that with greater distribution we could make an enormous profit from the refining operation. 20-25% annual growth and great margins that improve up to 25,000 barrels/day. The refinery has had some 15,000 barrel days and is going to be full out in 1999 with good profit for the rest of the year. We will be cash flow positive on the refinery in 3Q. The Hunts were again seen as the financier of last resort and the fact that they are converting will be fixed by the threat of a refusal to convert going forward and a lock up with them that will allow several months of non-conversion while the company floats a High Yield Bond to take out the Hunts, to buy barges for transporting the Asphalt and finance the drilling in Kazakstan. There was an announcement of sorts that old Russian data had been found and that the data indicated that the shallow sands of the Chick had been drilled by six wells and that there was proven reserves of 1 trillion Cubic feet of Gas. That the wells are newly discovered and that there exists sufficient Gas pipeline to transport this to Russia. Russian Deals are not over and that 25% stock of Nafta is contactually ours now and that AIPN wants $420,000 for it now not the original $300,000. Other deals are pending in Russia. Kaz will be drilled for Gas in Sept/Oct time frame and the seismic will be completed by July. The Hunt Conversion is over and GF will not convert any more going forward. He is determined to stop the dilution and represents that the Hunt deal was essential to keep the Company on the come with a JV and to buy time to get the refinery up and cash flowing in order to convince lenders that the Company can viably move forward and pay the debt service on a high yield offering. I think this was a very good meeting if GF stops the financing problem and can float the High Yield Bond. There was a general sense that the last piece for this company is to get a competent CFO who the Street would trust and could bring relationships to the Company like Chew, Anatole and Olivier have done and that would finally provide the company with conventional financing vehicles rather then these out of control convertible debenture, rambling wrecks that have crashed our share price. GF defended the CFO but IMHO there is no defense and he is generally negatively thought of from the Street's perspective as unreliable. On a final note Bobby Cohen was noticably absent and the implication to me was that he is falling out of favor along with the Millenium crowd and the emergence of Booke as a stablizing PR force on the Company. The company finally put forth the revenue generator as the leader of the Company and made Asphalt the King that will bring home the Kaz concession which for this "internet hype junky" was a relief considering that without Revenues we are through. This emphasis came out of the Booke influence IMHO and is refreshing. Last year with Millenium and Cohen running around during the meeting there was a carnival flavor to the meeting, this year it was more realistic and little hyped. I have the impression that we are on the verge of putting the Hunts to bed and getting on with the making of a real Company. I am more favorably impressed as I get futher from the meeting and realize that the hype is over and that the next phase has begun in earnest. DrRisk