Offshore staff
(Venezuela)- Vinccler Oil and Gas, the Venezuelan unit of Canadian oil company PetroFalcon, has received a full refund of the $7.39 million bid bond it paid to the energy and oil ministry for an exploration license on the Castilletes Noreste 2 block, according to Vinccler CFO Clancy Cottman.
The block was one of three offshore blocks awarded to Vinccler in the Rafael Urdaneta phase B offshore lease sale in the Gulf of Venezuela last November. However, in early February the energy and oil ministry postponed exploration activities on the block, and Vinccler signed an agreement with the ministry at that time not to seek damages resulting from the postponement.
Cottman would not disclose the reason the energy and oil ministry offered for deciding not to give Vinccler the go ahead.
Cottman said, "The agreement says that when the block becomes available, we have the first option at a price equivalent to what we paid plus interest for inflation."
Vinccler is still "very keen" on the Castilletes block, according to Cottman, who sited its proximity to other Vinccler operations in western Venezuela's Falcon state. Cottman added, "We think it's very prospective."
Cottman could not confirm statements by other Vinccler officials regarding the possibility of commercial amounts of crude being present in Castilletes.
Vinccler is partners with state oil firm PDVSA in two blocks. The joint venture currently produces some 1,400 b/d of light crude and 6 MMcf of natural gas that are sold to PDVSA at a rate of $1.33/Mcf.
Vinccler hopes to triple production of both crude and gas by the end of 2006.
04/26/2006
