My question :

Hi Marla

Yet another article came out yesterday about concessions etc. which mentions greater "state control" over Ecuador’s resources.

Of course this phrase spooks the market and sends investors running for the exits.

In your honest opinion, is the use of these terms simply posturing or should we be concerned. It is extremely frustrating for investors and probably Aurelian as well. It seems like you guys are doing all the right things but……

At the end of the day is Aurelian going to come up with a reasonable agreement that will stick or will the government try to revoke its agreement. Just looking for a degree of certainty here…..

Thanks

Her Reply.......

The government has come under cricism for handing out concessions too freely and not having good enough oversight of the companies working the concessions (or in some cases, sitting on them). When they say 'state control' they mean having stricter laws that require companies to work their concessions and provide a good level of reporting to the government and communities. They also want a royalty.

The reason that the government was so public about revoking concessions is it wants the people of Ecuador to know that it is enforcing the law. The concessions were revoked for not being current with their fee payments. Completely reasonable.