GFI Oil & Gas announces participation in in Kambuna Field development

Canadian junior oil and gas firm GFI Oil & Gas Corporation announced Thursday that the 2006 development program for the Kambuna Field in Glagah Kambuna TAC offshore North Sumatra has been approved by the working interest partners.

This commitment follows their successful 2005 field delineation program. 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 sq.km 3-D seismic program will commence this year, covering 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.(alex)