3-D seismic shoot completed at Kambuna

Calgary-based firm GFI Oil and Gas Corporation announced Thursday that a 432 square kilometer 3-D seismic shoot has been completed by contractor Veritas on the Glagah Kambuna TAC in North Sumatra Indonesia.

Details of the updated reserves will be published once the work has been completed by GFI's independent reserve engineers, the company said.

"This high quality 3-D seismic data will allow the company reserve at Kambuna field to have much better definition. Although the Kambuna field has been determined to be commercial, the ultimate size of Kambuna field (with a current 173 foot gas column and no gas water contact defined by drilling) has not yet been established. The new 3-D seismic data will also insure optimal positioning of the bottom hole locations of future wells. The Kambuna field operator, Serica Energy, has a drilling rig under contract and plans to drill two more field development wells in the last half of this year to complete the initial development drilling at Kambuna field, " GFI's CEO Alex Warmath said.

The company also reported that production start from the Kambuna field will be delayed at least 6 months tothe second half of year 2008. It did not give reasons for the delay.

GFI has 35 percent interest in the block. UK firm Serica Energy which holds 65 percent interest, is the operator of the block.

Serica reported in October 2006 that first production from the field was targeted at initial rates of approximately 50 million cubic feet per day of gas and 5,000 barrels per day of condensate(alex)