AMERICAN INTERNATIONAL INDUSTRIES, INC.
601 CIEN STREET, SUITE 235, KEMAH, TX
Tel: (281) 334-9479
Fax: (281) 334-9508
TO ACQUIRE FOUR DRILLING RIGS TO BE USED BY ITS
DELTA SEABOARD WELL SERVICE, INC.
Kemah, Texas – August 29, 2003 American International Industries, Inc. (OTCBB: AMIN)
today announced it has entered into a definitive agreement with Alameda, Inc., a
privately owned company based in Houston, Texas, Truman Arnold, President. For
over 30 years Mr. Arnold has been affiliated with the Coastal States
Corporation, a major energy producing company.
The board of directors of AMIN invited Mr. Arnold to serve as an advisory
director of AMIN. The agreement
entered between AMIN and Alameda is for the purchase of four operating drilling
rigs at a cost of $5,000,000. As consideration for the rigs, AMIN will issue to
Alameda 400,000 convertible preferred shares convertible into common shares of
AMIN at a price of $10.00 per share over a period of five years for a total
conversion of 400,000 common shares of AMIN. Any conversion and sale of the
preferred shares into common shares of AMIN will be restricted under Rule 144.
These rigs have been appraised at $8,200,000. The rigs are being purchased as an
opportunity to substantially increase revenues and potential profits for Delta,
a majority owned subsidiary to be of AMIN. Delta’s revenue for 2002 was
approximately $14,000,000 and the first eight months of this year are
profitable. The daily revenues Delta could derive from these Rigs could be as
much as $30,000 to $40,000 per day. AMIN
previously announced that it has entered into a final and definitive agreement
with Delta for the acquisition of 51% of Delta. For additional detailed
information of this transaction please refer to AMIN’s Form 8-K filing.
ownership by AMIN and Delta of certain drilling and completion rigs as well as
other equipment owned by Delta will allow Delta to expand its operations and
conservatively venture into the oil and gas exploration area. Daniel Dror,
Chairman & C.E.O. stated, “it is our opinion that the timing is right for
the purchase of operating companies in the oil and gas exploration and the
energy services field.” Delta
will use the four rigs, in addition to its other rigs and barges, for its
backlog of orders and increase its capacity for drilling wells as deep as 12,000
feet. Presently there is a great
demand for these services. With the
price of oil above $30 per barrel and natural gas price of approximately $5 per
MCF, the demand for drilling rigs has increased substantially over the past few
months. AMIN and Delta are
currently looking to acquire additional companies in the energy and alternate
American International Industries, Inc. is a growing holding company. The Company has holdings in Industry, Finance, Real Estate and Oil & Gas. The vision of the Company is to develop holdings in various industries through acquisition of existing companies, applying the financial resources and management expertise to foster the growth and profitability of the acquired businesses. The holding company serves as a financial and professional partner to the management of the subsidiaries. The role of the holding company is to improve each subsidiary’s access to capital, achieve economics of scale by consolidating administrative functions, and utilize the financial and management expertise of corporate personnel across all units. The Company is continuing to work with management of the subsidiary companies to improve revenues, operations and profitability. Periodically as opportunities present themselves, we may sell or merge the subsidiaries in order to bring value to the holding company and our shareholders and to enable the Company to acquire larger companies.
Private Securities Litigation Reform Act Safe Harbor Statement:
The matters discussed in this release contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, that involve risks and uncertainties. All statements other than statements of historical information provided herein may be deemed to be forward-looking statements. Without limiting the foregoing, the words "believes", "anticipates", "plans", "expects" and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those that we may anticipate in each of our segments reflected by our subsidiaries' operations, continued acceptance of the Company's products and services, increased levels of competition, new products and technology changes, the dependence upon financing, third party suppliers and intellectual property rights, the rules of regulatory authorities and risks associated with any acquisitions. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis, judgment, belief or expectation only as of the date hereof.
Relations: Rebekah Ruthstrom Tel: 281-334-9479 email: email@example.com