OilVoice - PetroFalcon Provides Operational Update

PetroFalcon Provides Operational Update

Tuesday, May 05, 2009

For the three months ended March 31, 2009, PetroFalcon Corporation reported a net loss of US$1.6 million (loss per share of US$0.01) compared to a net loss of US$1.7 million (loss per share of US$0.01) for the three months ended March 31, 2008. The reported loss is primarily due to the Company's adoption of the cost method of accounting. Under the cost method of accounting, PetroFalcon does not recognize income from its oil and gas investments until such time as dividends are received. The Company's MD&A contains a detailed analysis of the periods discussed.

Bill Gumma, PetroFalcon's President and CEO, said, "PetroFalcon has more than US$30 million in cash, no debt and no expected capital commitments for 2009. We are cutting costs and conserving cash, and we continue to aggressively review investment opportunities outside of Venezuela."

Operational Update

PetroCumarebo - PetroFalcon owns 40 percent of PetroCumarebo
PetroCumarebo's average gross production from both the East and West Falcon blocks for the three months ended March 31, 2009, was 2,884 boe/d. For the comparable period ended March 31, 2008, PetroCumarebo's average gross production was 2,807 boe/d.

PetroCumarebo is currently drilling the LV-24 well in the La Vela Field.

Baripetrol - PetroFalcon owns 5 percent of Baripetrol
Baripetrol's average gross production from the Colon Block for the three months ended March 31, 2009, was 9,614 boe/d. For the comparable period ended March 31, 2008, Baripetrol's average gross production was 10,140 boe/d. Despite the delay in securing a drilling rig in 2008, production has been maintained at consistent levels recently due to work-over jobs and pump changes, with two work-over rigs and one pulling unit under long-term contract.

During the first quarter of 2009, the LPT-16 well was drilled successfully in the La Palma Field with an average production of 1,100 boe/d. Baripetrol is currently drilling the LPT-17 well.