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Thursday October 22, 1:58 pm Eastern Time
Company Press Release
American International Petroleum Reports Third Quarter and Nine Month Results
NEW YORK--(BUSINESS WIRE)--October 22, 1998--American International Petroleum Corporation (Nasdaq NMS: AIPN - news) today reported revenues of $5,961,000 for the third quarter ended September 30,1998 compared to $104,000 for the third quarter a year ago. The net loss for the quarter just ended was $1,464,000, or $.03 per share, compared to a loss of $4,621,540, or $.11 per share, for the same quarter last year. Weighted average shares outstanding were 54,591,690 for the quarter just ended.
Revenues for the nine months ended September 30, 1998, were $9,228,000 versus revenues of $453,000 for the comparable year earlier nine months. The net loss for the nine months just ended was $3,518,000, or $.07 per share, compared to a loss of $12,707,000, or $.32 per share, for the same period last year. Weighted average shares outstanding were 51,663,456 for the nine months just ended.
Chairman and CEO Dr. George Faris said, ''The Company's increase in third quarter revenues versus the prior quarter can be attributed to aggressive marketing of its refined products and management's strategy to expand refinery and retail sales capacity. Although incurring significant additional costs during an extensive period of testing the Company realized a gross profit margin of approximately $478,000 and $700,000 for the third quarter and year-to-date, respectively. We more than doubled revenues from the second quarter even though the refinery was only processing at an average level of less than 15% of capacity.''
Dr. Faris added, ''We have accomplished our primary objective of testing various crude oil feedstocks and blends of asphalt to demonstrate to potential customers that we can produce high-quality conventional and technologically-advanced asphalts to exacting specifications, in addition to producing quality light-end refined products. Now our objective is to concentrate on maximizing margins.''
''In order to strengthen the Company's competitive position we are acquiring the St. Marks Refinery in Florida to open up new markets within Florida, Georgia and Alabama. The Company recently acquired a 27,000 barrel capacity inland barge to more quickly and economically transport the Company's refined products to the St. Marks terminal and to its customers throughout the Gulf Coast region,'' Dr. Faris said.
Dr. Faris also stated the Company will soon announce a date to initiate the spuding of its first well on the eastern portion of its Kazakhstan License No. 953. The well is designed to test the gas reserves identified in the shallow Eocene formation that has been independently estimated to potentially contain in excess of 1.1 trillion cubic feet of recoverable gas at a depth of 2,100 feet. The extent of the area is estimated at over 385,000 acres, with seven previously drilled wells completed in the area indicating multiple productive zones throughout the 700 gross meters at the Eocene interval.
American International Petroleum Corporation is a diversified petroleum company which, through various wholly owned subsidiaries, is involved in oil and gas exploration and development in Kazakhstan, and in refining, marketing and transportation of refined products in the United States.
Statements herein may be identified as forward-looking for purposes of safe harbor provisions under Section 21E of the SEC Act of 1934. Such statements relating to the Company's future business are subject to risks and uncertainties that could cause actual results to differ materially from those statements, and other risks and factors, identified in the Company's SEC filings.
AMERICAN INTERNATIONAL PETROLEUM CORPORATION
STATEMENT OF CONSOLIDATED INCOME
Quarter ended Nine months ended
September 30 September 30
1998 1997 1998 1997
Revenues $ 5,961,000 $ 104,000 $9,228,000 $ 453,000
Net Loss ($1,464,000) ($4,621,540) ($3,518,000) ($12,707,000)
Loss per share ($.03) ($.11) ($.07) ($.32)
Weighted ave.
shares
outstanding 54,591,690 42,252,140 51,663,456 39,140,084
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Contact:
American International Petroleum Corporation
Michael Dodge
212.688.3333
www.aipcorp.com |
