GFI Oil & Gas Corporation

GFI Oil & Gas Corporation

November 29, 2006 14:12 ET

GFI Oil & Gas Corporation Announces Completion of Financing and Additional Financing

CALGARY, ALBERTA--(CCNMatthews - Nov. 29, 2006) -

(Not for dissemination in the United States of America)

GFI OIL & GAS CORPORATION (the "Corporation") (TSX VENTURE:GFI) announces that it has completed its previously announced private placement (the "Private Placement"). The Corporation today completed the sale of 65,023,293 common shares of the Corporation at a price of CDN$0.65 per share for gross proceeds of CDN$42,265,140. Tristone Capital Inc. acted as agent in connection with the Private Placement. As previously announced, the Corporation intends to use the proceeds from the Private Placement for the on-going development of its Indonesia and Thailand gas and oil projects and for general working capital purposes.

The Corporation also announces that its Board of Directors has approved an additional private placement (the "Additional Private Placement") of up to 22,000,000 common shares of the Corporation at a price of CDN$0.65 per share for gross proceeds of up to CDN$14,300,000. The Additional Private Placement will be sold to interested investors. In addition, EnCap Investments L.P. has agreed to purchase a minimum of 4,900,000 common shares and, to the extent remaining common shares are not sold to other investors, up to 22,000,000 common shares, pursuant to the Additional Private Placement.

The completion of the Additional Private Placement is subject to receipt of all necessary regulatory approval and is expected to be completed in the next thirty days.

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.

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

Contact Information

  • GFI Oil & Gas Corporation
    Alex T. Warmath
    Chief Executive Officer
    (281) 877-7940
    GFI Oil & Gas Corporation
    12707 North Freeway, Suite 425
    Houston, TX 77079 USA