American International Petroleum to Renew Exploration Activity On Its License 953 in Kazakhstan.Business Editors NEW YORK--(BUSINESS WIRE)--July 31, 2000 Company To Re-Enter re·en·ter also re-en·ter v. re·en·tered, re·en·ter·ing, re·en·ters v.tr. 1. To enter or come in to again. 2. To record again on a list or ledger. v.intr. Begesh No.1 Oil Well On 12,000 Acre Begesh Structure American International Petroleum Corporation (Nasdaq NMS See NetWare Management System. : 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 ) today announced it plans to renew exploration activity on its 4.7 million acre License 953 in northwestern Kazakhstan in which the Company owns a 70% working interest. Due to recent interpretations of electric well logs from the Begesh No.1 well made by independent petroleum engineering consultants knowledgeable in the Jurassic oil producing intervals in Kazakhstan, the Company has decided to re-enter the Begesh No.1 oil well in order to test a key Upper Jurassic interval known to be oil productive in the Karakuduk Field. The Karakuduk oil field is located about 50 miles to the southwest and is being operated by a Kazak company in a joint venture with Chaparral Resources, Inc. The Begesh No.1 well, previously drilled, logged, partially tested and then suspended by the Soviets for future evaluation, continues to leak light sweet crude oil Sweet crude oil is a type of petroleum. Petroleum is considered "sweet" if it contains less than 0.5% sulfur[1], compared to a higher level of sulfur in sour crude oil. Sweet crude oil contains small amounts of hydrogen sulfide and carbon dioxide. . The Upper Jurassic interval in the Begesh No.1 well has never been tested. The Company is currently designing the re-entry RE-ENTRY, estates. The resuming or retaking possession of land which the party lately had. 2. Ground rent deeds and leases frequently contain a clause authorizing the landlord to reenter on the non-payment of rent, or the breach of some covenant, when the program which it expects to submit next week to the Kazakhstan authorities for their approval. Upon such approval the Company will begin mobilization to re-enter and test the well. The Company has identified two rigs in the area which are available for its use. The Begesh No.1 well re-entry and subsequent test program is designed to establish that the Jurassic formation in the Begesh structure is capable of producing oil in commercial quantity. Success of Begesh No.1 will support further delineation of the Jurassic formation on the 12,000 acre Begesh structure and its ultimate commercial development. The Begesh No.1 well is less than two miles from a major oil pipeline system, thus enhancing the ability to transport and market oil from the well should satisfactory rates of production be realized. American International Petroleum Kazakhstan, a wholly-owned subsidiary of the Company, owns two licenses in the Republic of Kazakhstan: Production License 1551, the Shagyryl-Shomyshty gas field, in which it has a 100% interest, has technically proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. of 604 billion cubic feet of gas as previously reported, and 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 the Republic of Kazakhstan, and in processing, marketing and transportation of a wide array of refined products, from naphtha naphtha (năp`thə, năf`–), term usually restricted to a class of colorless, volatile, flammable liquid hydrocarbon mixtures. to asphalt, 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 future business 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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