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American International Petroleum Reports 2000 Year-End Results; Joint Venture Asphalt Sales Expected To Increase Significantly With Record Backlog.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 3, 2001

American International Petroleum Corporation (Nasdaq NMS:AIPN) today reported revenues of $3,274,000 for the year ended December 31, 2000 compared with $8,352,000 for 1999.

The 2000 revenues include only the first six months of asphalt operations because that business has been conducted since July 1, 2000 within the Company's asphalt joint venture. Because the Joint Venture is accounted for on the Equity Method its revenues are not reflected in their entirety on the Company's Income Statement. The net loss for 2000 was $25,428,000, or $.23 per share, including non-cash items of $16,530,000, compared to a loss of $14,918,000, or $.20 per share, for 1999. Weighted average shares outstanding were 109,386,878 for 2000.

The non-cash charges in 2000 include a $12.5 million partial impairment of the Company's investment in its License 953 exploration project in Kazakhstan. After extensive testing and geological and geophysical research and study, the Company believes that any significant volumes of potentially economically recoverable oil and gas reserves may be found in the deep, untested, carboniferous structures, estimated to equate to approximately 40% of the total 4.7 million acres available for evaluation on License 953. The Company is in discussions with various potential partners to explore these deeper structures.

The Company's strategy for its License 1551 in Kazakhstan includes developing its shallow gas reserves there by initiating the first phase of its development drilling program this year, consisting of drilling four wells, two vertical and two horizontal wells. In addition, the Company is continuing to pursue negotiations for a gas sales contract with Gazprom, as well as other potential purchasers of gas.

The Company said its Lake Charles Refinery has been processing crude oil almost continuously since the end of February under its amended processing agreement with Sargeant Bulktainers Inc. It also noted that, although its refined products trading subsidiary, Gulf Coast Petroleum Trading Inc., completed its first sale of refined product during the last few days of the first quarter, the Company's first quarter revenues are expected to be in excess of $1,600,000.

The Company's asphalt joint venture currently has a record backlog of approximately $11 million and is expected to have positive cash flows for the year. The Company said it expects to more than double asphalt sales to about 70,000 tons this year compared to last year. Asphalt deliveries for the off-season first quarter this year were on budget.

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.


 Year ended December 31
 2000 1999
Revenues $ 3,274,000 $ 8,352,000
Net Loss $(25,428,000) $(14,918,000)
Loss per share $ (0.23) $ (0.20)

Weighted average shares outstanding 109,386,878 72,855,230

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: ability to find, and if found, develop oil or gas in carboniferous structures on License 953; ability to secure partners to further explore and/or develop License 953; ability to implement, or complete, strategy to develop License 1551, this year, or at any time; ability to complete gas sales contract with Gazprom, or any other potential purchaser of gas, for License 1551; ability of Company to maintain stated levels of crude refining and asphalt processing, or any level of production; ability of Company and SB to supply product(s), to Gulf Coast, or Gulf Coast's ability to successfully market those products; ability of AIRI/SB joint venture to maintain backlog, or supply product to meet any backlog, including ability to deliver approximately 70,000 tons of product this year; ability of joint venture to operate on a positive cash flow for 2001; 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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Publication:Business Wire
Date:Apr 3, 2001
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