Teutracker,

Good Day, hope you had a good dinner. here is an example of a 60-40 JV with shared cap-ex

"Can you please provide or name one example where Venezuela has entered into a 50 - 50 JV where it has applied their 50 % of the upfront investment dollars required? Just one example please!"

FOR IMMEDIATE RELEASE
PETROFALCON CORPORATION: VINCCLER OIL AND GAS, C.A. ANNOUNCES
EXECUTION OF CONVERSION AGREEMENT CREATING PETROCUMAREBO
JOINT VENTURE
CARACAS, October 2, 2006 - Vinccler Oil and Gas, C.A. (“Vinccler Venezuela”), the
wholly-owned subsidiary of PetroFalcon Corporation (the “Corporation”), is pleased to
announce the execution of the conversion agreement with Petróleos de Venezuela, S.A.
(“PDVSA”) and its affiliated entity, Corporación Venezolana del Petróleo (“CVP”).
As previously announced, Vinccler Venezuela was negotiating with PDVSA and CVP on
the creation of a jointly-owned entity (the “Empresa Mixta”) to hold all the operating
rights to the West Falcon Block and the East Falcon Block. On September 29, 2006, the
final conversion contract was executed creating the Empresa Mixta, Petrocumarebo.
Juan Francisco Clerico, the Corporation’s Chairman and CEO, said, “We are very happy
to conclude our negotiations in the transition of the former operating service agreements
to the new Empresa Mixta. This stabilizes and strengthens our position in the oil and gas
business in Venezuela, and we look forward to substantially increasing Petrocumarebo’s
production as an equity partner with PDVSA.”
The transition to the Empresa Mixta converts Vinccler Venezuela’s interests in the East
Falcon Block and the West Falcon Block, covering more than 800,000 acres in
northwestern Venezuela, into a single development entity, and it gives Petrocumarebo the
exclusive right to produce and sell oil and natural gas from the two blocks.
The final contract relating to the Empresa Mixta was executed in accordance with the
Memorandum of Understanding (“MOU”) signed on March 31, 2006, between Vinccler
Venezuela and PDVSA/CVP, confirming the following general structure for
Petrocumarebo:
• The effective date of Petrocumarebo is April 1, 2006
• Petrocumarebo will pay a royalty of 33.3% on oil and natural gas production
• Petrocumarebo will have an applicable income tax rate of 50%
• Petrocumarebo will have a term of 20 years

• Vinccler Venezuela will receive dividends from Petrocumarebo in US dollars on a
quarterly basis derived from its 40% participation
• Vinccler Venezuela will be responsible for 40% of Petrocumarebo’s approved 12-
month capital expenditure budget of $40.7 million and 40% of the operating
expenses
Petrocumarebo plans to mobilize a drilling rig in the La Vela Field this month to
commence a development and exploratory drilling program. Petrocumarebo is currently
permitting and building locations for 11 wells at the La Vela Field to develop the shallow
oil and natural gas discovery in 2005 offsetting the LV-10 well. The Empresa Mixta is
also permitting and building locations for a development well and an appraisal well at the
Cumarebo Field, targeting proven natural gas reservoirs, as well as proven, probable and
possible oil reserves. In addition, Petrocumarebo is permitting locations in West Falcon
for an exploration well and a development well, subject to a successful long-term test of
an apparent discovery drilled in 1995 by Samson.
Outside of Petrocumarebo, Vinccler Venezuela was one of 13 companies to recently
purchase the “Delta Caribe” technical information package from the Ministry of Energy
and Petroleum (“MENPET”). Vinccler Venezuela is now evaluating the data for possible
participation in a bidding consortium to develop offshore natural gas production in the La
Blanquilla and Punta Pescador areas.
In the Gulf of Venezuela, Vinccler Venezuela holds an exclusive option on the 500,000-
acre Castilletes NE II Block. Offsetting operator Gazprom will commence 3-D seismic
work on the Urumaco I Block in the fourth quarter of 2006. Repsol and ENI are
scheduled to 3-D the Cardon IV Block in the second quarter of 2007. Vinccler
Venezuela is waiting on notification from MENPET to exercise its option to a gas license
on the Castilletes NE II Block.
PetroFalcon Corporation is a natural resource company currently engaged in oil and gas
operations in Venezuela through its wholly-owned subsidiaries, Vinccler Oil and Gas,
C.A. and West Falcon Hydrocarbons, S.R.L. The Common shares of PetroFalcon trade
on the Toronto Stock Exchange under the symbol “PFC”.