GFI Oil & Gas Corporation

GFI Oil & Gas Corporation

November 27, 2007 22:13 ET

GFI Oil & Gas Corporation Announces Quarterly Financial and Operating Results for the Three Month Ended September 30, 2007

CALGARY, ALBERTA--(Marketwire - Nov. 27, 2007) - GFI Oil & Gas Corporation ("GFI" or the "Company") (TSX VENTURE:GFI) announced today that it has filed on SEDAR, its quarterly consolidated financial statements for the three months ended September 30, 2007, related Management's Discussion and Analysis, and the required certificates from the CEO and CFO. These documents are available on SEDAR at or on GFI's website at


GFI is a public company listed on TSX Venture Exchange Inc. (symbol "GFI.V") with core interests in two offshore fields currently under development. Offshore Thailand, GFI is farming into a 60% ownership interest in the 104,000 acre Block B8/38, which contains the Bualuang oilfield ("Bualuang PSC"). Offshore northern Sumatra, Indonesia, GFI owns a 35% non-operated interest in the 94,000 acre Glagah Kambuna Technical Assistance Contract ("Glagah Kambuna TAC"), where GFI and the operator are developing the Kambuna Field. GFI also holds a 22.5% working interest in the 1.1 million acre Seruway Production Sharing Contract ("Seruway PSC") adjacent to Glagah Kambuna TAC offshore northern Sumatra, and owns a 50% interest in 83,000 gross acres in the Crystal gas project in the USA.

Operational Highlights


Bualuang PSC

In the first quarter ended September 30, 2007, GFI obtained approval for an environmental permit for production. Our project management continues to be on track with the completion of the procurement of all long lead items. The construction of the platform is well underway with an expected load-out and the installation of the platform in the Gulf of Thailand, and the installation of the topside production facilities on the FPSO, scheduled for completion January -February 2008.

We are actively reorganizing our drilling program and are scheduled to begin drilling the first of the six development wells in February 2008 with full production expected by the end of March 2008.


Glagah Kambuna TAC

The operator has advised that the fabrication of the platform jacket is almost complete and is expected to be installed in late 2007. The operator has also contracted a rig, which is scheduled to arrive on the property in January 2008 to begin drilling the first of the initial field development wells.

Seruway PSC

A 100-square kilometre 3-D seismic program was conducted in the Seruway PSC offshore North Sumatra, Indonesia, to determine the location of the next development well for the Gurame Field. The survey delineated a large structural feature in which five wells have been drilled to date. This structure will be evaluated by the Gurame #6 well, which we expect to be drilled in the first quarter of calendar year 2008.

United States

Crystal Gas Project

GFI maintained its acreage position as we evaluate various options to further develop the Crystal gas project. We expect to have the opportunity to drill or cause to be drilled several prospects in the calendar year 2008, ranging between 3,000 to 7,500 feet in depth.

Financial Highlights

GFI's income was limited to interest for the first quarter ended September 30, 2007, as our properties are still in the development phase and have not yet begun to realize oil and gas revenues. Interest income for the first quarter increased to $279,000 (for the three months ended September 30, 2006 - $88,000) due to larger cash balances from the recent private placements and the income on cash placed in restricted accounts.

For the first quarter ended September 30, 2007, our total expenses were approximately $2,187,000 (for the three months ended September 30, 2006 - $827,000). We recognized a net loss of $1,908,000 (for the three months ended September 30, 2006 - net loss of $739,000).

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.

Issued and Outstanding Common Shares: 168,188,806

The TSX Venture Exchange Inc. 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
    GFI Oil & Gas Corporation
    Gerald F. Clark
    Chief Financial Officer
    (281) 877-7279
    GFI Oil & Gas Corporation
    12707 North Freeway, Suite 425
    Houston, Texas 77060