PetroFalcon Completes LV-10 Well in La Vela Field

PetroFalcon's subsidiary, Vinccler Oil and Gas, C.A., has completed the LV-10 well in the southern part of the La Vela Field. The well was planned to drill "up-dip" of the producing LV-6X well and test the same productive Miocene Pedregoso and Cerro Pelado reservoirs. The LV-10 well was drilled to a total depth of 9,990 feet and based on wireline logs, has encountered approximately two hundred feet of potentially productive reservoir in the deep portion of the well. Vinccler has set production casing to total of depth. This potential pay is in addition to the approximately 300 feet of potential reservoir encountered in the shallow Caujarao and Socorro formations announced by Vinccler on May 13, 2005. The well will require extensive production testing to evaluate the full potential of the oil and gas accumulations and the Corporation believes that LV-10 will add a significant number of new oil and gas development locations.

Due to the time required for well testing, integration of the new seismic data into the structural interpretation, and PDVSA's request to utilize the rig, Vinccler has agreed to release the Pride 1200 horsepower rig to PDVSA. With the signing of the Gas Addendum (May 27, 2005) and the previously approved 2005 development program, Vinccler has a portfolio of approved drilling locations and intends to resume operations in the Cumarebo and La Vela fields later in 2005.