American International Petroleum Corporation (fka AIPN)

[Begesh]

Golfer, I still think we will see better days for AIPN.

I think this post from RB sums things us.

http://ragingbull.lycos.com/mboard/boards.cgi?board=AIPN&read=45522

By: carefulinvestor
17 May 2002, 11:39 AM EDT Msg. 45522 of 45528
(This msg. is a reply to 45512 by cnasty2.)

cnasty2: Why didn't "the street" know about ADSX when it ran from .11 to $2.40? The so-called "street" has been wrong often, as has been proved time and time again throughout the history of the stock market.

And this is the OTC, expect even stranger things to happen -- they do all the time.

Furthermore, unless AIPN was lying to the SEC in the 10Q a couple of days ago, multi-year (http://ragingbull.lycos.com/mboard/boards.cgi?board=AIPN&read=45414) refinery contracts (plural, http://ragingbull.lycos.com/mboard/boards.cgi?board=AIPN&read=45418) are still on the table.

AIPN also noted in that same 10Q that the refinery "is now gearing up to produce several new specialty products that are high margin with potential significant growth possibilities," (http://ragingbull.lycos.com/mboard/boards.cgi?board=AIPN&read=45417) which still fits with the ATOFINA (http://ragingbull.lycos.com/mboard/boards.cgi?board=AIPN&read=41881 ) rumors that have been circulating for some time.

Moreover, why are they gearing up now at the Lake Charles refinery, if nothing is about to happen?

The same 10Q also stated (on the 1551 gas deals):

"We are currently engaged in negotiations and discussions with various
potential purchasers and transporters for the transportation and/or
purchase of our anticipated Shagryly gas production and other gas we may
have available for sale under a U.S. Dollar or Eurodollar backed contract"

"...of Shagyrly Shomyshty. We have had discussions with various financing
entities, suppliers and export credit agencies regarding project financing
to complete the full development of this project."

On 953 we also read:

In May 1997, our American International Petroleum Kazakhstan subsidiary
entered into an agreement with MED Shipping and Trading S.A., a Liberian
corporation with offices in Frankfurt, Germany, to acquire 70% of the stock
of MED Shipping Usturt Petroleum Ltd., a Kazakhstan corporation which owns
100% of the working interest in a Kazakhstan oil and gas concession called
License 953.The concession is located approximately 125 kilometers from
the Chevron Corporation"s multi-billion-barrel Tengiz Oil field near the
Caspian Sea in the North Usturt Basin.

"...we believe it continues to be a viable
prospect because License 953 is known to contain other geological
structures with unevaluated geological potential and we currently intend to
have the required minimum work program completed in accordance with the
contract...After extensive testing and geological and geophysical research and study,
we believe that any significant volumes of economically recoverable oil and
gas may be found in the deep, untested, carboniferous age rocks. The
carboniferous is present over approximately 40% of the total unevaluated
acreage remaining on License 953."

Seeds has done some stellar research in the area and provided us with many excellent posts regarding these comments.

Here is just one example:

---

By: seeds-by-size $$$$
29 Apr 2002, 09:55 AM EDT Msg. 43885 of 45519
(This msg. is a reply to 43856 by carefulinvestor.)

Dear carefullinvestor,

It just means that like money speaks louder then words any oil company looking for a bigger stake in Kazakhstan or an oil major coming in for the first time will realise the potential large amount of oil and gas on the AIPN Licence 953 and licence 1551,after all the North Ustyurt Basin is said to be the second largest richest hydrocarbon Basin after the North Caspian Basin in all of Kazakhstan.

I came across what will be probably be found at 4,400 meters long before I ever heard of AIPN from a discussion with an oil engineer who was working for an oil company in an oil field in Turkmenistan whose carboniferous hydrocarbon reservoir depth was similair to the Tenzig depth and all three Baisins touch each other and shared a similair geological history up to that time.

In summation I am just saying INCREASINGLY VALUABLE HYDROCARBON ASSETS LIKE THOSE AT 1551 & 953 WILL ATTRACT INCREASINGLY DEEPER FINANCIAL POCKETS and this has been going on for at least 2 years or more from what I have read on this board and it is only a matter of time ,in my opinion, that if AIPN can hang on that a favourable deal for AIPN will be made in my opinion and in terms of statistical probability.

Just supply and demand once the morst favourable fields in the North Caspian,Middle Caspian and South Caspian basins are snapped up which now they look to be except in the disputed areas that The North Ustyurt Basin is Next and the biggest prize is AIPN's 1551 and 953 licences as I see it.

John Size

From: http://ragingbull.lycos.com/mboard/boards.cgi?board=AIPN&read=43885
___

It is also been noted on this board that serious talks are taking place regarding both 953 and 1551 and that JK plans to fly to Russia (if he has not already left) soon to focus on closing a deal on 1551.

Emphases added throughout this post.

FWIW & IMO

Competition

Refining and Asphalt Divisions

The State Departments of Transportation throughout the southeastern part of
the United States, including all the states that we consider our
marketplace, continue to expand the percentage of polymer modified asphalts
in the total mix of road grade asphalts laid on their various highways.
This continuing development has been very good for us as the major oil
companies continue their withdrawal from this complex business. Our Lake
Charles asphalt blending facility currently has the capability to furnish
the majority of these polymer modified products. The facility is now
gearing up to produce several new specialty products that are high margin
with potential significant growth possibilities.

In addition to the construction of the Exxon coker in Houston, which
eliminated Exxon Mobil from the asphalt business, Marathon Ashland
Petroleum has recently commissioned a large coker in New Orleans that we
expect will bring drastic supply changes to the entire marketplace.
Marathon will move from a net seller in the wholesale asphalt market to a
net buyer to supply their vast downstream retail rack business. We plan to
fill a portion of this void upon resumption of crude processing.

Most of our competition in our planned asphalt manufacturing business will
come from those refiners who do not have downstream processing options such
as residual coking capacity. The major competitor in the local truck rack
market is a blending plant operation over 75 miles away. The average
distance from our refinery to the nearest competing truck rack
asphalt-producing refinery is over 150 miles away. We have been successful
over the past year developing the East Texas market. Our current volume in
East Texas approaches fifty percent of our business. We have transportation
advantages over all competitors in the gulf coast area except one whose
overall cost basis is higher than ours.

10Q


(Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Strong Buy)