A Colleague From Ecuador Speaks

I received these observations from an Ecuadorian who lived in Alberta for several years:

I'm amazed this would be happening in Alberta!

Silly me thinking that crazy stuff like this only happened in this side of the world. About a year ago, the Ecuadorian government passed a law that was immediately applied to all contracts.

This law provides the government of half of the oil revenue over a certain WTI base price, we split the revenue on top of this base price half / half.

And of course operating costs, capital costs, royalties and taxes are all paid paid by the producer independently.

Do you imagine the impact this had on Blocks producing 10,000 bopd or less?

My friend, South America has no monopoly on bad governments. We're quite capable of producing them in Alberta too!