EZ,

I can't agree with your opinion that Venezuela lacks the assets to pay for a favorable Arbitration award by the ICSID.

For your information, I obtained the following information from a high American Govenment official whose opinions are, as follows:

1. KRY should file for Arbitration as soon as legally possible as he does not believe Venezuela will do anything unless legally forced. (which I agree with)

2. The Verdict can be used to force Venezuela to give us the Permit, etc.

a) To change the Exploration date to the full 60 years and/or terminate when KRY notified Venezuela that the operation is no longer profitable.

b) Change our MOC so that KRY can receive the World Spot Price in currencies other than Venezuelan, or, if in Venzuelan currency, to reflect the World Price in Venezuelan Bolivars, not an Exchange rate set by the Venezuelan Central Bank.

Because Venezuela has ASSETS outside of Venezela, there should be no problem in receiving full value in cash, goods, or the Permit and changes, as described above.

In other words, Venezuela would have the OPTION of paying the AWARD VERDICT in cash or isuing KRY the Permit on KRY terms.

Either way, I believe Venezuela has the ability to make full payment. Remember, the ICSID VERDICT can be enforced Internationally where ever they have Assets. I believe they have 3 heavy oil Refineries and a petroleum distribution network - CITGO, in the USA.