PetroFalcon Corporation’s 40%-owned joint venture, PetroCumarebo, successfully tested the LV-12 development well at a rate of 5 million cubic feet of natural gas per day (“mmcf/d”). The well is located in the La Vela Field on the East Falcon Block in Venezuela.

PetroFalcon also announced an update on drilling operations in the La Vela Field, as well as the commencement of workover operations in the West Falcon Block.

LV-12 Well Test

The LV-12 well was successfully drilled to a total planned depth of 3,167 feet on January 13, 2007, and, according to wireline logs, encountered 136 feet of net hydrocarbon sands in the Caujarao and Socorro formations. After construction of the flowline and connection to the trunkline, the well was perforated from 2,460 to 2,584 feet in the middle Miocene Socorro formation and tested at a rate of 5 mmcf/d with a flowing tubing pressure of 1,000 psig on a half-inch choke. There is an additional 102 feet of potential shallow oil and gas reservoirs that remains to be tested in the upper Socorro formation and in the still shallower Caujarao formation.

William Gumma, PetroFalcon’s President, said, “We are pleased to announce confirmation of La Vela’s shallow reservoir potential with the completion and testing of the first well successfully drilled by PetroCumarebo, our joint venture with PDVSA. The testing of LV-12 is a major operational milestone for PetroCumarebo, and we look forward to increasing production soon through PetroCumarebo’s development drilling and workover program.”

La Vela Drilling Update

The LV-13 well, planned as a deviated J-shape well from La Vela Platform-A, was abandoned after a blowout of shallow gas occurred at 696 feet on January 25, 2007.

PetroFalcon expects to recover its 40% cost for LV-13 from its well control insurance policy. After abandoning LV-13, PetroCumarebo moved the rig to La Vela Platform-B and began drilling the second 4-well cluster, starting with LV-14. Changes in casing design and drilling procedures and equipment upgrades on the drilling rig were made prior to the spudding of LV-14 in order to reduce operational difficulties caused by the presence of shallow gas.