CARACAS: Vinccler Oil and Gas, the wholly-owned subsidiary of PetroFalcon Corp. (TSX:PFC), terminated the agreement to acquire a 30 percent working interest from Chevron Corp. (NYSE:CVX) in the offshore natural gas license for the Cardon III Block in the Gulf of Venezuela. According to the terms of the agreement, Chevron will reimburse all amounts paid by Vinccler, plus interest.

PetroFalcon President and CEO Bill Gumma said, "We are opting out of the Chevron exploration well in the Gulf of Venezuela due to the tightening global capital markets and the uncertain oil and natural gas price environment. After Chevron returns our share of past Cardon III expenses with interest, we will have more than US$33 million in cash, no debt and no expected cash calls from Baripetrol or PetroCumarebo for 2009 capital expenditures."