American International Petroleum reports results of Independent Reserve study; new Colombian discovery reveals potentially 17 million barrels of recoverable oil, more than doubling AIPC's current oil reserves.

NEW YORK--(BUSINESS WIRE)--Jan. 9, 1996--AMERICAN INTERNATIONAL PETROLEUM CORPORATION (NASDAQ:AIPN), announced today the results of a preliminary estimate of its new oil discovery in the Toqui Field in Colombia, South America performed by the Company's independent petroleum engineers, Huddleston & Co., Inc. of Houston, Texas.

Huddleston & Co. estimates the potential oil in place in the recently discovered deeper oil zone in the Toqui Field, the Chicoral Formation, to be approximately 133 million barrels, of which approximately 13%, or 17.1 million barrels, is recoverable. Huddleston further estimates that the Chicoral Structure extends over an area of 1,673 acres with an oil reservoir of an average thickness of 113 feet. The drilling of additional wells will be required to adequately define the commercial extension of the Structure.

Commenting on the reserve study, Dr. George N. Faris, Chairman of American International Petroleum, said, "We are very pleased with the results of this significant new discovery which, based on Huddleston's preliminary independent reserve estimates, represents the potential of more than doubling the Company's current oil reserves.

"The Company currently owns a 100% working interest in the new discovery and estimates that the oil recovery factor could potentially be as high as 18% resulting in 24 million barrels of recoverable oil," he added.

The Toqui TT-34 well was drilled to a total depth of 4,069 feet and encountered 120 feet of net pay in the Doima Sands which is the normal productive sand in the Toqui Field. In addition, the well encountered 161 feet of net pay in the Chicoral Formation. Huddleston and the Company believe the well should have been drilled deeper and the net pay could have been more than 161 feet. However, further drilling was constrained by the rig's capacity. The Company has completed production testing of 111 feet out of the 161 feet of net pay which resulted in an initial combined flow rate of 152 barrels of oil per day of an average 27 degree gravity and 300,000 cubic feet of gas per day. The Doima Zone will be tested next week and the well will immediately be put on production from the Doima Zone only pending approval from Ecopetrol, the Colombian National Oil Company, to produce from the new discovery.

The TT-34 well was drilled on a "sole risk" basis, which allows the Company to recover 200% of its costs before its partner, Petronorte, may convert its 20% working interest. The other partner, Ecopetrol, may choose to participate in 50% of the future net profits generated by this discovery by reimbursing the Company 50% of past costs and participate in 50% of future costs associated with this discovery. Presently, the Company maintains a 100% working interest until each of the other parties decide whether or not to participate. If both Petronorte and Ecopetrol decide to participate, the new discovery will then be owned as follows: 40% AIPC, 50% Ecopetrol and 10% Petronorte.

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

CONTACT: American International Petroleum Corp.

Denis J. Fitzpatrick, CFO, 800/298-AIPC