PetroFalcon Corporation
TSX : PFC

PetroFalcon Corporation

March 21, 2006 14:44 ET

PetroFalcon: Vinccler Oil and Gas, C.A. Announces Acquisition of West Falcon Unit in Western Venezuela

CARACAS, VENEZUELA--(CCNMatthews - March 21, 2006) -

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Vinccler Oil and Gas, C.A. ("Vinccler" or the "Company"), the wholly-owned subsidiary of PetroFalcon Corporation, (TSX:PFC) is pleased to announce that today it has completed the acquisition of a subsidiary from Samson International. The Company now owns West Falcon Samson Hydrocarbons, S.R.L. which owns 100% of the West Falcon Operating Service Agreement in Venezuela (the "West Falcon Unit"). The effective date of the acquisition is October 1, 2005, and the purchase price consisted of US$ 2 million cash and 1.75 million common shares of PetroFalcon Corporation. The parties have received approval from the Venezuelan Ministry of Energy and Petroleum ("MENPET") for the acquisition. The current production from the West Falcon Unit is approximately 450 barrels of oil equivalent. The production is delivered into PDVSA's oil and gas pipelines which serve the Paraguana Refining Complex, the world's largest refinery. The West Falcon Unit covers a large portion of the western part of Falcon State immediately adjacent to Vinccler's East Falcon Unit. The West Falcon Unit also contains exploration and exploitation projects which include shut in oil and gas fields and seismically defined high potential drilling targets located near the pipeline transport system. The Company plans to test the shut in wells and begin the permitting process for at least one 4500 foot exploration well in 2006.

The acquisition of West Falcon Unit raises the Company's daily production to over 1,600 barrels of oil equivalent (boe).

Vinccler anticipates that the assets of this new subsidiary will form an integral part of the Empresa Mixta currently being negotiated with MENPET and Corporacion Venezolana de Petroleo ("CVP"). The combined assets will solidify the Company's position in the State of Falcon and allow Vinccler to grow its oil and gas production.

Juan Francisco Clerico, Chairman and CEO of the Company stated, "This acquisition is consistent with our commitment to expand our Venezuelan operations and grow our oil and gas production in the western part of the country. We look forward to working with the Ministry of Energy and Petroleum and PDVSA to expand activity in the State of Falcon."

PetroFalcon Corporation is a natural resource company currently engaged in oil and gas operations in Venezuela through its wholly-owned subsidiary, Vinccler Oil and Gas, C.A. The common shares of the Company trade on the Toronto Stock Exchange with the symbol "PFC".

Cautionary Statement regarding Forward-Looking Information

Except for statements of historical fact, all statements in this press release, without limitation, regarding acquisitions, new projects, forecasted production, future plans, objectives and results constitute forward-looking information within the meaning of applicable Canadian securities legislation which involve risks, uncertainties and assumptions including, without limitation: and other factors, many of which are beyond our control. All such forward-looking information is based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. Actual results, performance or achievements could differ materially from those expressed in, or implied by, such forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits will be derived therefrom. Except as required by law, PetroFalcon Corporation and its subsidiaries expressly disclaim any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information contained herein is expressly qualified by this cautionary statement.


Contact Information

  • PetroFalcon Corporation
    Juan Francisco Clerico
    Chief Executive Officer
    011 (58) (212) 263-9164
    or
    PetroFalcon Corporation
    Maria Alejandra Sosa
    Corporate Development
    011 (58) (212) 263-9164
    011 (58) (212) 266-8830 (FAX)