GFI Oil & Gas Corporation
TSX VENTURE : GFI

GFI Oil & Gas Corporation

January 17, 2008 12:10 ET

GFI Oil & Gas Corporation Announces 10 Well Drilling Program for Calendar Q1 2008

CALGARY, ALBERTA--(Marketwire - Jan. 17, 2008) -

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GFI Oil & Gas Corporation ("GFI") (TSX VENTURE:GFI) www.gfioil.com announced it will participate in drilling ten wells in the 1ST quarter of calendar year 2008. Nine of these wells will develop 19.3 MMBOE of net 2P reserves at the Bualuang field in Thailand and the Kambuna field in Indonesia, and one well is designed to further delineate the Gurame field in the Seruway Production Sharing Contract (PSC) in Indonesia.

At the Bualuang field in Thailand, GFI as technical operator will begin a six well development drilling program once the Ensco rig # 51 arrives on location, expected in first part of February. GFI is currently installing the production platform at Bualuang and also expects the Rubicon Vantage FPSO to arrive on location in February. GFI's net share of Proved and Probable reserves at Bualuang includes 6.1 MMBO of Proved Undeveloped and 7.0 MMBO Probable oil reserves, as reported by McDaniel & Associates Consultants LTD. (McDaniel) in their June 30, 2007 reserves report of GFI.

At the Kambuna field in Indonesia, the Global Santa Fe drilling rig #136 is expected to be on location in mid-January to drill the Kambuna #3 and #4 development wells and complete the Kambuna #2 well that the GFI participated in drilling in late 2005. The production platform construction has been completed and work is currently underway by the operator, Serica Energy, on pipelines and facilitates needed to bring Kambuna field on production at the end of 2008. GFI's net share of reserves at the Kambuna gas/condensate field include 3.1 MMBOE of Proved Undeveloped and a further 3.1 MMBOE of Probable reserves per the McDaniel June 30, 2007 reserves report.

At the Gurame field in the Seruway PSC in Indonesia, GFI expects that the Gurame #1x field delineation well will spud in the last half of February, once the Ensco barge rig # 1 is released from the Salamander Energy field delineation program underway at the Bontang PSC. This field delineation well will be drilled to a depth of approximately 9600 feet to evaluate a number of zones that have previously tested gas in the initial 5 wells drilled in Gurame field in the late 1960's and early 1970's.

Alex Warmath the CEO of GFI Oil and Gas Corp confirmed that the first quarter drilling program represents a major step forward toward establishing GFI production objectives in South East Asia in 2008.

About GFI

GFI is a public company listed on TSX Venture Exchange Inc. (symbol "GFI") with core interests in two offshore fields currently under development. Offshore Thailand, GFI is farming in to a 60% ownership interest in the 104,000 acre Block B8/38, which contains the Bualuang oilfield. Offshore northern Sumatra, Indonesia, GFI owns a 35% non-operated interest in the 94,000 acre Glagah Kambuna Technical Assistance Contract (TAC), where GFI and the operator are developing the Kambuna Field. GFI also holds a 22.5% working interest in the Seruway Production Sharing Contract (PSC) located offshore northern Sumatra Indonesia and owns a 50% interest in 83,000 gross acres in the Crystal gas project in the USA. GFI recently announced that it and Salamander Energy PLC had agreed to a merger subject to the receipt of shareholder and regulatory approvals as well as certain other terms and conditions. It is anticipated that such merger would be completed early March of 2008.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The shares offered will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

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.

Note that BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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
    Gerald F. Clark
    Chief Financial Officer
    (281) 877-7279
    Email: jerryclark@gfioil.com
    or
    GFI Oil & Gas Corporation
    12707 North Freeway, Suite 425
    Houston, TX 77079 USA
    Website: www.gfioil.com