American International Petroleum Reaches Total Depth At Its Begesh No. 1 Oil Well in Kazakhstan.
NEW YORK--(BUSINESS WIRE)--Jan. 17, 2001
American International Petroleum Corporation (OTC BB: AIPN) today announced that, its wholly-owned subsidiary, American International Petroleum Kazakhstan, has completed re-entry operations of the Begesh No. 1 well in western Kazakhstan, after delays incurred to remove old debris left in the well by the original drilling operator. The Company will immediately begin electric logging operations of the well to establish that the Jurassic formations in the Begesh structure are able to produce oil in commercial quantity.
Testing will be performed at various depths ranging from 3,800 to 2,900 meters to test previously untested zones in the Jurassic. Similar Jurassic intervals are known to be oil productive in the area.
The test program is designed to support further delineation of the Jurassic formations on the 12,000 acre Begesh structure, and possibly on the adjoining 10,000 acre Orlean structure, and the ultimate commercial development of both structures. Baker Hughes Inc. (NYSE: BHI) will perform all testing operations, including providing all perforating. Baker Hughes, based in Houston, Texas, is a leading supplier of reservoir-centered products, services and systems to the worldwide oil and gas industry.
The Begesh No.1 well is less than two miles from a major oil pipeline system, thus enhancing the Company's ability to expedite the transport and sale of oil from the well, should satisfactory rates of production be realized.
The Company continues to have discussions with potential industry partners regarding joint venturing the License's development should results of Begesh No.1 support commercial development.
American International Petroleum Kazakhstan, a wholly-owned subsidiary of the Company, owns two licenses in the Republic of Kazakhstan: (1) Production License 1551, the Shagyryl-Shomyshty gas field, in which it has a 100% interest, has technically proved reserves of 604 billion cubic feet of gas, as previously reported, and (2) Exploration License 953, a 4.7 million acre exploration block, in which the Company has a 70% working interest.
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 Kazakhstan, and in refining, marketing and transportation of petroleum products in the United States.
Statements herein may be identified as forward-looking for purposes of safe harbor provisions under Section 21E of the Securities and Exchange Commission Act of 1934. Such statements relating to the Company's business, including, specific to this press release: timely completion, or ability to complete, logging and/or testing operations; timely availability of test results, if any; ability of Begesh No.1 well to support commercial operations; ability to support delineation, and commercialize, Begesh and/or Orlean structures; ability to sign joint venture agreement, 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.
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|Date:||Jan 17, 2001|
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