American International Petroleum Comments on Status of Negotiations Regarding License 1551 in Kazakhstan.

Business Editors

NEW YORK--(BUSINESS WIRE)--March 17, 2000

American International Petroleum Corporation (Nasdaq:AIPN), responding to numerous inquiries from shareholders, today announced the status of current negotiations involving AIPC's License 1551 in Kazakhstan.

The company reported that negotiations are currently underway with two separate companies with regard to purchase of a working interest in License 1551 as well as with RAO Gazprom and its subsidiaries with regard to gas sales, transportation and other services. License 1551, the Shagyrly-Shomyshty gas field, has recoverable, technically proved net gas reserves of 604 BCF (billion cubic feet) and an aggregate recoverable 963 BCF of technically proven and probable gas reserves in place.

-- One working interest candidate, Tyumen Oil Company, has signed a protocol with AIPC, as was previously announced. Discussions have advanced through the preliminary due diligence stages. A meeting is scheduled in Almaty, Kazakhstan next week to examine permits and license documents and to review the substantial amount of technical data available on the License. Detailed examination of the company's feasibility study and development plan are contemplated in Houston starting the following week. Talks with Tyumen regarding the compensation framework have been held and are expected to be completed after full due diligence is finished.

-- The other prospective working interest partner has been to Almaty for the first due diligence session and additional negotiation meetings are being scheduled in Moscow. It is anticipated that the next round of discussions will ensue upon arrival of the company's negotiating team in Moscow, anticipated for April 1.

-- Drafts for a drilling services contract with Burgaz, a Gazprom drilling subsidiary, for the initial drilling phase and full development drilling plans have been completed. Burgaz has also made a due diligence trip to Almaty to review the drilling data and technical requirements.

-- Gazprom is currently reviewing minor clarifications to the draft of a gas sales contract to sell the gas from the block into Western Europe. Final review and anticipated approval of these documents is underway. However, the process is subject to a number of factors, including Russian elections later this month and the availability of key people.

-- Johnny Kopecky, newly announced President of the Oil & Gas Division, has assumed a lead role in the negotiations and will direct the negotiating team in all its activities. He will chair the feasibility/development review meeting in Houston and thereafter will travel to Moscow for continued talks.

-- AIPC said it was encouraged by the progress being made with both prospective partners and with Gazprom and its subsidiaries. Commitment and active involvement by all staff groups and negotiators is high. Although there are no assurances at this time, the company remains optimistic that all negotiation components will be successful.

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 the Republic of Kazakhstan, and in refining, marketing and transportation of its refined products in the United States.

The material contained in this announcement may include forward-looking statements and information involving risks and uncertainties, such as those set forth in the company's filings with the Securities and Exchange Commission. These risks and uncertainties may cause actual results to differ materially from those contained in this announcement.