GFI Oil & Gas Corporation
TSX VENTURE : GFI

GFI Oil & Gas Corporation

February 27, 2008 17:40 ET

GFI Oil & Gas Corporation Announces Results for Development Drilling at the Bualuang Field

CALGARY, ALBERTA--(Marketwire - Feb. 27, 2008) -

THIS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

GFI Oil & Gas Corporation ("GFI") (TSX VENTURE:GFI) today announces results from the drilling of its first two development wells at the Bualuang field, Thailand. GFI holds rights for a 60% interest in the Block B8/38-Bualuang field.

The initial development well, known as the Bualuang 05, has been drilled and logged to a true vertical depth of 1221 meters sub-sea. Preliminary evaluation of the well logs confirmed the well encountered oil pay over a 25 meter gross interval (approximately 21 meters of net pay). The well encountered porosity averaging 29% and preliminary core analysis indicates permeability averages 809 millidarcies over the pay interval.

The second well, known as the Bualuang 01, has been drilled to a true vertical depth of 1270 meters and logged. Preliminary evaluation of the 01 well logs indicate the well encountered oil pay over a 23 meter gross interval (approximately 20 meters of net pay). This well was not cored and the logs over the pay zone indicate an average porosity of 27%.

Development operations at Bualuang will continue until mid-April 2008.

GFI's Chief Executive Officer Alex Warmath said, "We are pleased with the progress we have made so far in developing the Bualuang Field and with the initial results of the development drilling program currently underway. Our work at Bualuang continues on track, with the FPSO Rubicon Vantage expected on location by late March 2008."

About GFI

GFI is a public company listed on TSX Venture Exchange Inc. (symbol "GFI.V") with core interests in two offshore fields currently under development, the Bualuang oilfield offshore Thailand (60%) and a 35% non-operated interest in the Kambuna natural gas and condensate project located offshore northern Sumatra, Indonesia. GFI also holds a 22.5% non-operated interests in the Seruway PSC a license covering approximately 1,100,000 acres located offshore North Sumatra Indonesia.

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.

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