GFI Oil & Gas Corporation

GFI Oil & Gas Corporation

November 16, 2006 17:21 ET

GFI Oil & Gas Corporation Announces Proposed Financing Terms

CALGARY, ALBERTA--(CCNMatthews - Nov. 16, 2006) -

(Not for dissemination in the United States of America)

GFI OIL & GAS CORPORATION (the "Corporation") (TSX VENTURE:GFI) announces that it has amended the terms of its previously announced private placement (the "Private Placement"). The Corporation and its agent, Tristone Capital Inc. have agreed the Corporation will sell up to 70,000,000 common shares on a best efforts basis at a price of CDN $0.65 per share for gross proceeds of up to CDN$45,500,000 (the "Private Placement"), subject to regulatory approval. 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 completion of the Private Placement is subject to regulatory approval and the usual other conditions, including the completion of due diligence. Certain directors, officers, employees and 10% shareholders of the Corporation intend to purchase common shares under the Private Placement.

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