PetroFalcon subsidiary Vinccler Oil & Gas says it has scrapped plans to purchase a 30% stake in the license for the Cardon III natural gas block in the Gulf of Venezuela from Chevron.

The company blames “tightening global capital markets and the uncertain oil and natural gas price environment” for the decision. As a result, the would-be buyer will get a reimbursement of around $5m plus expenses and interest, which would leave PetroFalcon with more than $33m in cash, it says. PetroFalcon will focus on its producing assets.