GFI Oil & Gas Corporation

GFI Oil & Gas Corporation

May 23, 2006 13:51 ET

GFI Announces Heads of Agreement Increasing its Position in Indonesian Contracts by 40%

CALGARY, ALBERTA--(CCNMatthews - May 23, 2006) -

This release is not for distribution to U.S. Newswire Services or for dissemination in the United States.

GFI Oil & Gas Corporation ("GFI") (TSX VENTURE:GFI) announced today that it has signed a Heads of Agreement to purchase an additional 10% in both the Glagah Kambuna Technical Assistance Contract (Glagah Kambuna TAC) and the Asahan Offshore Production Sharing Contract (Asahan PSC) located in shallow water Offshore Northern Sumatra, Indonesia (collectively the "Contracts"). With the additional 10% GFI through its subsidiaries will own 35% of the Contracts increasing its total position in Indonesia by 40%.

First production for the Kambuna field is expected late 2007 and first production for the Tanjung Perling field is anticipated shortly thereafter in early 2008.

The Plan of Development for the Kambuna field in the Glagah Kambuna TAC has been approved by the Indonesian government and the Plan of Development for the Tanjung Perling field in the Asahan PSC is planned for submission in the second quarter of 2006.

GFI is an international oil and gas development company focusing on acquiring and developing previously discovered oil and gas fields (Greenfields) which significantly reduces below ground risk and finding and development cost and accelerates cash flow. GFI is an Alberta company created pursuant to the Business Corporations Act (Alberta) with offices in Houston, Texas.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • GFI Oil & Gas Corporation
    Mark N. Witt
    Chief Financial Officer
    (281) 877-7279
    GFI Oil & Gas Corporation
    12707 North Freeway, Suite 425
    Houston, TX 77079 USA