American International Petroleum Places $1.9 Million Conventional Debt.Business Editors NEW YORK--(BUSINESS WIRE)--June 20, 2002 American International Petroleum Corporation (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: AIPN AIPN Association of International Petroleum Negotiators AIPN Australian Injury Prevention Network AIPN Advanced Industrial Property Network (Japanese Patent Office) AIPN Asian Industrial Property Network )), announced today that it has sold a nine-month $1.9 million 12% secured Bridge Note to GCA GCA, ground-controlled approach: see instrument-landing system. Strategic Investment Fund Limited ("GCA"), Hamilton, Bermuda. The proceeds from the financing will be utilized for working capital purposes. This will also allow the Company more time to work towards the completion of ongoing negotiations to put its entire Lake Charles Lake Charles, city (1990 pop. 70,580), seat of Calcasieu parish, SW La.; inc. 1867. It is located on Lake Charles at the mouth of the Calcasieu River in a rice, timber, oil, and natural gas region. facility to work on a long term basis, and to consummate a refinancing to replace its existing debt. "We continue our efforts to complete a long-term transaction for our Lake Charles facility, which includes both processing crude oil and manufacturing asphalt," said Company President Jim Knight James Knight known as Jim Knight (born 6 March 1965, Bexley) is a British politician for the Labour Party who has been a Member of Parliament since 2001. As of June 2007 Knight holds the post of Minister of State for Schools and Learners in the Department for Children, . "We have seen in the past that the best way to maximize the profits of our Refining Division is to operate all the units simultaneously. We are making progress towards achieving this goal and, although we can't be certain at this point, we hope to complete a deal soon. Such a transaction should provide the necessary cash flow and margins to enhance our ability to refinance our debt. That is the next step." He also said that the Company has informed its principal lenders that it intends to attempt to redeem its existing debt as soon as practicable and that the lenders were receptive to such a plan. The Company continues to have discussions with potential partners regarding a farm-out of some of our 100% working interest in License 1551, the Shagyrly gas field in Kazakhstan. Any proceeds that may be derived from the possible sale or farm-out of a portion of our oil and gas concessions in Kazakhstan will be utilized to repay debt, fund the development of our License 1551 gas field and the minimum work program at our License 953, and for general corporate uses. The majority of the development funding for License 1551 is expected to be derived form project financing Project financing A form of asset-based financing in which a firm finances a discrete set of assets on a stand-alone basis. . American International Petroleum Corporation is a diversified petroleum company which, through various wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , is involved in oil and gas exploration and development in the Republic of Kazakhstan, and in processing crude oil, and in marketing and transporting a wide array of refined products in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Statements herein may be identified as forward-looking for purposes of safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions under Section 21E of the Securities and Exchange Commission Act of 1934. Such statements relating to the Company's business, including those specific to this press release, including efforts to complete a long term contract for Lake Charles; ability that such a deal will enable satisfactory cash flow and margins to allow refinancing, or enable all units to operate simultaneously; ability to redeem existing debt; or, consummate a farm-out agreement for Kazakhstan Licenses; and all future business of the Company, are subject to risks and uncertainties that could cause actual results to differ materially from those statements and other risks and factors, identified in the Company's SEC filings. |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion