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RPT-UPDATE 1-PetroFalcon ends deal to buy part of Chevron field

Mon Jan 5, 2009 8:22am EST

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Jan 5 (Reuters) - Venezuelan oil and gas exploration and production firm PetroFalcon Corp PFC.TO ended its agreement with Chevron Corp (CVX.N) to buy a 30 percent working interest in Chevron's Cardon III field, citing uncertainty in global markets.

PetroFalcon said its unit, Vinccler Oil and Gas, will not buy the working interest in the offshore gas field in the Gulf of Venezuela, and that Chevron will pay back all amounts paid by Vinccler plus interest.

"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," PetroFalcon CEO Bill Gumma said in a statement.

He added that after Chevron reimburses PetroFalcon, the company will have more than $33 million in cash.

Shares of the company closed at 25 Canadian cents Friday on the Toronto Stock Exchange.

For the alerts, please double-click [ID:nWNAB6606] . (Reporting by Arup Roychoudhury in Bangalore; Editing by Pratish Narayanan)

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