By: carefulinvestor 13 Sep 2002, 09:32 AM EDT Msg. 55592 of 55973 (This msg. is a reply to 55573 by Sniper67.)
*** REFINERY INFO... AIPN SEC FILINGS ***
(And remember AIPN is not bound legally by the many rumors [positive or negative], so-called "Dodge talks" [I wonder how many people actually call Dodge before they post? -- I've already caught some lying in this regard by calls to Dodge I've made myself to verify information], or what someone's neighbor said [what a joke!], that are anonymously posted on these boards; however, AIPN is bound legally [i.e. they are legally liable] based on what they write in their SEC filings).
"We are engaged in negotiations for a transaction that would put our entire refining and asphalt facility in Lake Charles to work on a long-term basis. The terms of this transaction have been agreed to (PAST TENSE!!!) and implementation is contingent upon securitization of crude oil purchase contracts and financing to support our purchase of crude oil and asphalt feedstocks. Our management believes the anticipated cash flows from this transaction are sufficient to support all of our overhead and domestic operations during the transaction's five-year term. It should also enhance our ability to refinance our existing debt..."
(From AIPN's recent S-1, emphases added)
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The Company is currently negotiating a long-term transaction with a large oil company which would fully utilize the entire Lake Charles refining and asphalt facilities and provide it with the working capital necessary to support all of its domestic overhead and operations. ...
As operations at the Refinery expand during 2002, the Company plans, to the extent possible, to prudently obtain bank or other conventional, non-equity financin to replace its existing convertible debt and provide the supplemental funds necessary to support its operations and minimum work program in Kazakhstan.
From AIPN's S-1/A, August 26, 2002 (emphases added)
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We recently signed a six-month term agreement with an independent refiner whereby, beginning around September 1, 2002, we will process a minimum of 1.8 million barrels of light Louisiana sweet crude oil through the atmospheric distillation unit at our Lake Charles, Louisiana refinery for a throughput fee. The agreement requires the refiner to make a $350,000 cash deposit of prepaid processing fees, which will be amortized on a pro rata basis during approximately the first three months of the agreement. In addition, they will issue on our behalf a $2 million irrevocable Standby Letter of Credit to guarantee payment of the processing fees. We also gave the refiner a one-year Right of First Refusal to purchase our Lakes Charles, Louisiana refinery. The refiner plans to retain approximately 40% of the resultant processed products. We plan to purchase and market the remainder to various third party purchasers, which are plentiful in the Lake Charles area. We have signed a related Sales and Purchase Agreement to govern these purchases and sales, the term of which runs concurrently with the processing agreement.
The aggregate cash flows we expect to derive from these transactions are anticipated to provide a significant portion of all of our operative cash flow needs during the next six months. Thereafter, we expect to renew the processing agreement for a longer term, replace it with another agreement, or increase our processing capabilities at the Lake Charles facility to allow us to simultaneously process through both the atmospheric unit and the vacuum distillation unit for our own account or for third parties. We have been approached by companies who have expressed a desire to process through our refinery and provide capital for the facility expansion necessary to enable this dual processing structure.
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