AIPC sees over 1 bn barrels potential recoverable reserves in Kazakhstan

July 10, 1997 American International Petroleum Corp. sais it has received revised reserve estimates for its license in Kazakhstan. The License Area is located in western Kazakhstan about 125 miles Southeast of Chevron's multi-billion barrel Tengiz Oil field and the Caspian Sea. The Area is bordered to the South by Elf Aquitaines' License, and to the West by both Oryx/Exxon License and Amoco License.
Revised preliminary evaluation by the company's independent petroleum engineering consulting firm indicates that potential recoverable reserves from 7 structures, located in the western half of the License, could be as much as 1.1 billion barrels from Jurassic Age sandstones. Nine additional structures have been identified in the License Area, but have not yet been evaluated. The revision of potential reserve estimates was due to the receipt of additional seismic data from the Kazakhstan Government and the evaluation of an additional structure.
Regional seismic on the eastern half of the License Area indicates additional structures, the largest of which measures about 50 km in length. The Kazakhstan Government drilled one well in this structure to the top of the feature, which blew out with gas and condensate such that no additional evaluation was possible from the well. The company believes that this structure, whose potential reserves are not yet estimated, could provide the largest potential deposit in the License Area. The company is continuing its evaluation of the area and will expand its evaluation program with the release of additional data from the government.
The Area is conducive to providing various sales options for any commercial oil or gas development from the License site since there are several oil and gas pipelines which cross the Area. The existing infrastructure permits rapid development of any commercial production and more importantly provide flexibility in securing acceptable sales markets. Production can be sold North to Russia, Finland and the Atyrau Refinery, and/or South through the Caspian Sea port at Aktau for export abroad. The company expects full government approval of the transfer of the license to MSUP Ltd. which is 70 % owned by the American International Petroleum Corp..