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

To: Razorbak who wrote (9634)	4/1/1999 4:38:00 PM
From: Razorbak	Read Replies (3) \| Respond to of 11888

Form 10-K -- Going Concern Opinion For some reason, they filed an NT 10-K, and then filed the 10-K shortly thereafter. Go figure. Anyway, of particular interest is the auditor's report... Razor >>>>>> INDEPENDENT AUDITOR'S REPORT To the Board of Directors and Stockholders American International Petroleum Corporation We have audited the accompanying consolidated balance sheets of American International Petroleum Corporation and Subsidiaries as of December 31, 1998 and 1997, and related consolidated statements of operations, stockholders' equity and cash flows for each of the three years in the period ended December 31, 1998. These consolidated financial statements are the responsibility of the Company's management. Our responsibility to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of American International Petroleum Corporation and Subsidiaries as of December 31, 1998 and 1997, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 1998, in conformity with generally accepted accounting principles. The Company reported a net loss of approximately $9.1 million during 1998, of which approximately $4.6 million represented non-operating or non-cash items, has commitments to fund the operations of its Kazakstan subsidiary (see Note 10) and has a working capital deficit of approximately $4.9 million at December 31, 1998. The Company had limited revenue generating operating activities during 1998 and does not, as of December 31, 1998, have the resources to fulfill its operating and capital commitments. The Company has a substantial amount of costs capitalized in unevaluated oil and gas properties in its Kazakstan subsidiary which relates to an oil and gas concession. The Company will require a substantial amount of additional capital expenditures to recover its investment in the concession. These matters raise a substantial doubt about the Company's ability to continue as a going concern. Management's plans in regards to these matters are discussed in Note 2 to the financial statements. HEIN + ASSOCIATES, LLP Houston, Texas March 30, 1999