American International Petroleum Corporation signs contracts increasing the price of its Colombian oil by 30%.

NEW YORK--(BUSINESS WIRE)--May 29, 1996--AMERICAN INTERNATIONAL PETROLEUM CORPORATION (NASDAQ:AIPN), announced today it has successfully negotiated new contracts to sell the oil production from its Toqui-Toqui Field in Colombia.

Effective May 15, 1996, the Company began selling all is oil production to CarboPetrol at an average net price of $10.60 per barrel, an approximate 30% increase over the price it was receiving before this date.

In addition, beginning June 11, 1996, the Company will begin selling approximately two-thirds of its oil production to Ecopetrol on a sliding-scale one-year contract, based upon the price of West Texas Sweet

Intermediate Crude as follows:

WTI Price/bbl. Toqui Oil Price/bbl.

Above $23 $12.50

$21-$23 $12.20

$19-$21 $11.50

$16-$19 $ 9.27

Below $16 $ 8.00

The remaining one-third of the production will continue to be sold to CarboPetrol at $10.60/bbl, which price will be renegotiated on a quarterly basis.

Assuming the continuance of current production rates and prices, these contracts would result in an approximate 27% increase in the Company s annual oil revenues in Colombia as compared to 1995.

American International Petroleum Corporation is engaged in oil and natural gas exploration and production in Colombia and Peru, South America and in refining in Louisiana.

CONTACT: Denis J. Fitzpatrick

Chief Financial Officer

(800) 298-AIPC