GFI Oil & Gas Corporation
TSX VENTURE : GFI

GFI Oil & Gas Corporation

October 16, 2007 19:54 ET

GFI Oil and Gas Announces That It Has Filed Its Reserve Information on SEDAR and Has Booked a Reserve Increase of 18% to 19.3 MMBOE Net, Including Proved (1P) Reserves of 9.3 MMBOE Net

CALGARY, ALBERTA--(Marketwire - Oct. 16, 2007) -

THIS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

GFI Oil and Gas Corporation (TSX VENTURE:GFI) ("GFI") today announced its final fiscal year end June 30, 2007 net proved and probable reserves of 19.3 MMBOE representing an 18% increase over FYE06 2P reserves of 16.4 MMBOE. These new reserves estimates include 9.3 MMBOE of proved undeveloped 1P reserves, marking the first time GFI reserves are booked to the "proved" category. The reserves estimates have been prepared by McDaniel & Associates Consultants Ltd. in accordance with standards set out in the National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities. Sixty-eight percent (68%) of the 2P reserves are attributable to the rights GFI holds for a 60% interest in Block B8/38-Bualuang field in the Gulf of Thailand, and the remaining 32% of the 2P reserves are from the 35% interest GFI holds in the Kambuna field in the Glagah Kambuna Technical Assistance Contract (TAC) area offshore Indonesia. Further detail on the Company's reserves is provided in the table below. A copy of the report is available on the company's website at www.gfioil.com and on the SEDAR website at www.sedar.com .

GFI CEO Alex Warmath said, "We are pleased with the progress we have made over the past year in bringing each of these two development opportunities closer to first production. Our work at Bualuang, where we act as Technical Operator, continues on track with first oil expected within six months, and the work at Kambuna continues on pace for start-up at the end of 2008. We believe the progress at both of these fields demonstrates the success of our Greenfield strategy."



GFI Oil and Gas Net Reserves
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Proved Probable Total 2P
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Bualuang Field(1)
Oil, Mbbl 6137 6976 13113

Kambuna Field(2)
Natural Gas, MMcf 12857 12896 25753
Condensate, Mbbl 979 907 1886
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MBOE 3,122 3,056 6,178

Total Company
MBOE 9,259 10,032 19,291

(1) Company net reserves are based on Company share after royalty deductions
(2) Company net reserves are based on Company share of total Cost and Profit
Volumes
(3) Reserves are estimated using prices forecast by McDaniels and Associates
in accordance with the guidelines of NI-51-101

Abbreviations: Mbbl means thousnads of barrels
MMcf means millions of cubic feet
MBOE means thousands of barrels of oil equivalent
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GFI is an international oil and gas development company focusing on acquiring and developing previously discovered oil and gas fields (Greenfields). GFI's Greenfield strategy reduces below ground risk, reduces finding and development costs, and accelerates near term cash flow. GFI is an Alberta company created pursuant to the Business Corporations Act (Alberta) with offices in Houston, Texas.

ADVISORY - Certain information regarding GFI set forth in this release, including management's assessment of GFI's future plans, operations and operational results may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with oil and gas exploration, production, marketing, and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserves estimates, environmental risks, competition from other producers, currency exchange risks, uncertain political risk in countries where the operations of GFI take place, and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

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
    Alex T. Warmath
    Chief Executive Officer
    (281) 877-7940
    Email: awarmath@gfioil.com
    or
    GFI Oil & Gas Corporation
    12707 North Freeway, Suite 425
    Houston, TX 77060
    USA
    Website: www.gfioil.com