Petroritupano

PetroFalcon is acquiring an 18% interest (subject to government approval) in Petroritupano, S.A., a joint venture with the Venezuelan state-owned oil and gas company, Petróleos de Venezuela, S.A. (PDVSA), and Petrobras Energía, S.A. Petroritupano operates the Oritupano-Leona Block (almost 340,000 acres) in the Maturin sub-basin of eastern Venezuela and has current onshore production of oil and natural gas.

PetroCumarebo

Vinccler Oil and Gas owns 40% of PetroCumarebo, S.A., a joint venture with PDVSA. PetroCumarebo holds all the operating rights to the East Falcon Block and the West Falcon Block (838,000 acres) in northwestern Venezuela and has current onshore production of oil and natural gas. The Falcon area is strategically located in close proximity to the Paraguana Refinery Complex, the largest refinery in the world.

Baripetrol

Vinccler Oil and Gas also owns a 5% interest in Baripetrol, S.A., a joint venture between PDVSA, Tecpetrol and Perenco. Baripetrol operates the Colon Block (297,000 acres) in western Venezuela and has current onshore production of oil and natural gas.

Cardon III

Vinccler Oil and Gas is acquiring a 30% interest (subject to government approval) in the offshore natural gas exploration license for the Cardon III Block (218,000 acres) in the Gulf of Venezuela where Chevron Corporation is operator and majority partner. Cardon III is located in relatively shallow waters 38 kilometers northwest of the Paraguana Refinery Complex. Chevron completed 3-D seismic data acquisition on Cardon III in April 2007, and a drilling decision is expected in 2008. If successful, the first commercial production of natural gas from Cardon III is expected in 2011.

Cardon IV

Vinccler Oil and Gas is acquiring a 25% interest (subject to a definitive agreement and government approval) in the offshore natural gas exploration license for the Cardon IV Block (228,000 acres) in the Gulf of Venezuela where Repsol YPF and Eni SpA are partners. Cardon IV is located in relatively shallow waters 30 kilometers west of the Paraguana Refinery Complex.  Repsol and Eni completed 3-D seismic data acquisition on Cardon IV in February 2007, and a drilling decision is expected in 2008. If successful, the first commercial production of natural gas from Cardon IV is expected in 2011.