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

To: DRRISK who wrote (9212)	10/20/1998 9:16:00 AM
From: DRRISK	Respond to of 11888

Table of Contents Related Sites: Barron's Online SmartMoney Interactive Careers.wsj.com Business Directory Publications Library wsj.com Radio Hear top news of the hour with RealPlayer 5.0 Search/Archives: Search Briefing Books Quotes Past Editions Journal Links Special Reports Resources: Help New Features Your Account Contact Us Glossary Advertising: Advertisers E-Mart Dow Jones Newswires -- October 19, 1998 Amer Intl Petroleum Sees First Kazakstan Well In Nov. By LOREN FOX Dow Jones Newswires NEW YORK -- Small oil prospector American International Petroleum Corp. (AIPN) plans to drill its first well in Kazakstan in early November. If the well, in the Chikuduk shallow natural gas prospect, is commercial the company would drill 10 to 12 more wells on the prospect beginning in March, Chairman and Chief Executive George Faris told Dow Jones. That would mark the New York-based company's first drilling in the 4.7 million-acre exploration block onshore Kazakstan that has driven investor interest since early 1997. Faris said the gas prospect is 60 to 70 miles from either of two gas pipelines, and development would require a roughly $20 million connecting line. The thinly traded stock has often moved on speculation regarding the fate of its Kazakstan assets, which it holds through its 70% ownership of a company that has 100% of the concession. The stock also traded on developments in the financing, as the company has been criticized for raising cash by selling potentially dilutive convertible securities. Money questions and Kazakstan's uncertainty have hurt the Nasdaq-listed stock, which was up 1/16, or 6%, at 1 3/32 on Monday, well off its Dec.1 high of 5 3/4. With 54 million outstanding shares, its market value is roughly $59 million. The stock had topped $4 a share in March, but then began sliding in April on concerns over the company's sale of $12 million in convertible debentures to the Hunt family. Investors were also upset when the company didn't extend the maturity on warrants issued in 1994.Faris acknowledged the stock has been hurt by worries over dilution,saying: "It's a question that haunts me." But Faris said the Hunts have agreed not to convert their debentures for now, and the company has no intent of using an equity-backed $40 million line of credit with the Hunts. American International first touted the oil potential of its Kazakstan block, but it believes the shallow gas deposits of Chikuduk can be more quickly recovered and sold. That's a key issue for the capital-constrained company, which has lost money for the past five years and lost $17.9 million, or 43 cents a share, in 1997 on revenue of just $827.964. In the 1997 annual report, American's auditors questioned its "ability to continue as a going concern." Although Faris expects American to show another loss when it reports its third-quarter results later this week, he believes the financial situation is improving. The company has retained an investment bank, which it wouldn't name, to advise it on a high-yield debt issue and on attracting a larger strategic partner. In addition, the company's 30,000 barrels-a-day refinery in Lake Charles, La., began operating in the spring, turning Mexican heavy oil into asphalt. He expects the refinery to generate revenues of $40 million to $50 million in 1999 and make the company profitable for the year. If all goes according to plan, Faris expects gas sales from Chikuduk in 2000. Coupled with profitable asphalt sales, he said, "We are on the verge of turning the corner." -By Loren Fox; 201-938-5267 loren.fox@cor.dowjones.com ------------------------------------------------------------------------ Briefing Book for: AIPN Return to top of page \| Format for printing Copyright © 1998 Dow Jones & Company, Inc. All Rights Reserved. This is from Wall Street Interactive and is a real Story. DrRisk

To: DRRISK who wrote (9212)	10/20/1998 9:42:00 AM
From: DRRISK	Read Replies (1) \| Respond to of 11888

Thread, I think it is interesting that the AOLers would cast doubt on the efficacy of this story, whatever. The trading yesterday had some highlights in that as the wake of this release grabbed hold a buyer "en bloc" emerged to acquire shares at 14:45 for 1 7/64 (taking them off the hands of what appeared to be SEAS out of Aspen) 28,500 shares while the stock was going up and trading at 3/16x7/32, so below the Bid. This same buyer came back to buy @ 1 13/64 another 29,300 shares at 14:52 while the trading was at 3/16x1/4 splitting the Bid and the Ask. So who is the mystery accumulator? We can infer that the price average of 5/32 is the shortterm accumulation price and my suspicion is that the accumulator may be DEAN (Dean Witter) IMHO, FWIW. After these trades the price drifted down into the close with daytraders unburdening their shares and selling of 1k's and less taking the price down. My point is that the bulk price for this stock has gone up in one week from 15/16 to 1 5/32. this represents a 23% increase for anyone who wants to accumulate a position. Even the infamous RMCC joined the party briefly @ 1/8 to take some of the disgourging daytraders shares at 1/8, his first buys at these prices in weeks. I say that the market action is forcasting something important and that is that news of financing is around the corner and that this interview signifies a more balanced perspective of GF not hyping the stock. FWIW and IMHO only DrRisk