GFI Oil & Gas Corporation

GFI Oil & Gas Corporation

March 22, 2006 16:00 ET

GFI Oil & Gas Corporation Announces Participation in 2006 Kambuna Field Development Program in Indonesia

CALGARY, ALBERTA--(CCNMatthews - March 22, 2006) -

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

GFI Oil & Gas Corporation (TSX VENTURE:GFI) ("GFI") ( today announced that the 2006 development program for the Indonesian Kambuna Field has been approved by the working interest partners. This commitment follows their successful 2005 field delineation program. The Kambuna Field is one of the fields discovered within the Glagah Kambuna Technical Assistance Contract (TAC) located offshore northern Sumatra. Results from the Kambuna #2 well, which tested at the rate of 17.5 MMCFD and 1,596 BCPD, confirmed the commerciality of the Kambuna field. The operator, a subsidiary of Serica Energy PLC has submitted the Plan of Development for approval to the Government of Indonesia and approval is expected in the first half of 2006.

Additional development wells to be drilled in the second half of the year are called for in the 2006 work plan. A 350 3-D seismic program will commence mid-summer. This 3-D seismic program will cover the entire Kambuna field and will be used to evaluate several other drilling opportunities in the Glagah Kambuna TAC and the adjoining Asahan Offshore PSC slated for the 2007 drilling campaign.

GFI holds a 25% interest in the 94,200 acre Glagah Kambuna TAC and another 25% interest in the 539,600 acre Asahan Offshore PSC through its subsidiaries. GFI plans to continue growing its portfolio of oil and gas projects (Greenfields) in Indonesia in 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 and its management resides in Houston, TX.

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 Witt
    Chief Financial Officer
    (281) 877-7279
    GFI Oil & Gas Corporation
    12707 North Freeway, Ste 425
    Houston, TX 77060