American International Petroleum announces third quarter results.

NEW YORK--(BUSINESS WIRE)--Nov. 15, 1996--American International Petroleum Corp. (NASDAQ:AIPN), today announced results of operations for the third quarter of 1996.

The company's revenues for the nine months ended Sept. 30, 1996 increased by 56% to $2,890,000 from $1,848,000 in the same period last year, reducing its net loss by 44% to $1,525,000, or five cents per share on 30,406,476 weighted average shares outstanding, compared to a net loss of $2,703,000 or 13 cents per share on 21,832,299 weighted average shares outstanding for the first nine months of 1995. The improvements in 1996 versus the prior year period were attributable primarilly to a significant increase in the company's refinery lease fees and lower general and administrative expenditures, net of non-cash items, in the first nine months of 1996 as compared to the same period in 1995.

For the third quarter ended Sept. 30, 1996 revenues increased 30% to $1,000,000 from $771,000 in the third quarter of 1995, resulting in a net loss for the third quarter 1996 of $743,000, or two cents per share on 32,884,064 weighted average shares outstanding. This compares with a net loss of $675,000, or three cents per share on 22,417,001 weighted shares outstanding in the third quarter of 1995. The third quarter of 1996 reflects a one-time non-cash adjustment of $422,000. Without this adjustment, the loss for the quarter would have been $321,000, a 52% improvement over the third quarter last year.

Commenting on the results, Dr. George N. Faris, chairman and CEO, said, "We are very pleased with the significant improvement in the revenues for both the quarter and nine month periods. We continue to experience improvements in operating cash flow, in fact, on a cash basis, our operations were only $36,000 away from break-even for the third quarter this year. Should this trend continue, we expect our operations to be cash-flow positive by year-end, particularly in light of the recent 33% increase in the daily oil production in Colombia resulting from our partially-completed workover program there. In addition, we've made significant inroads in further cost-cutting company-wide."

American International Petroleum Corp. is engaged in oil and natural gas exploration and production in Colombia and Peru, South America and in refining in Louisiana. -0-

                   AMERICAN INTERNATIONAL PETROLEUM CORPORATION
                                 FINANCIAL SUMMARY
                     Three Months Ended      Nine Months Ended
                          Sept. 30,               Sept. 30,
                     1996         1995       1996         1995

Revenues      $ 1,000,000  $   771,000   $ 2,990,000   $ 1,848,000
Expenses      $ 1,743,000  $ 1,446,000   $ 4,415,000   $ 4,551,000
Net Loss      $  (743,000) $  (675,000)  $(1,525,000)  $(2,703,000)
Loss per share $     (.02) $      (.03)  $      (.05)  $      (.13)
Weighted
  average
  shares
  outstanding  32,884,064   22,417,001    30,406,476    21,832,299


Operating            Three Months Ended      Nine Months Ended
Statistics:               Sept. 30,               Sept. 30,
                     1996         1995       1996         1995

Refinery Operations:

Refinery lease
  fees          $ 663,000    $ 400,000  $1,780,000   $  780,000
Average Daily
  Throughput
  (bbls)           14,112       11,109      12,531       10,539
Average
  Throughput
  Fee               $0.50        $0.40       $0.50        $0.40

Oil and Gas Operations:

Average net
  production
  (bbls)           26,000       31,000      99,000       98,000
Realized price
  per barrel       $11.57       $ 8.19      $ 9.51        $8.10
Production cost
  per barrel       $ 6.92(a)    $ 2.62      $ 3.95(a)     $2.28
DD&A per barrel     $3.77        $3.86       $3.77        $3.86

(a) Reflects overliftings by partner; actual unit cost was similar
to 1995.

CONTACT: American International Petroleum Corp.

Denis J. Fitzpatrick, 800/298-AIPC or

212/688-3333