GFI Oil & Gas to increase interests in N. Sumatra blocks

Canadian oil and gas firm GFI Oil & Gas Corporation said Wednesday it had signed two agreements to acquire an additional 10 percent interest in the Glagah Kambuna TAC and the Asahan Offshore PSC located in shallow water offshore North Sumatra, respectively, for a total of US$5.1 million in cash and US$2 million in shares of GFI.

?Closing of the Acquisition is subject to regulatory approval and approval of the Indonesian government which is expected in 4Q 2006. Closing of the acquisition is also subject to other usual conditions,? GFI said in a statement.

GFI, through its subsidiaries, is currently holding a 25 percent interest each in Glagah Kambuna and Asahan Offshore.

First production at the Kambuna field in Glagah Kambuna is expected to occur in late 2007, while the Tanjung Perling field at Asahan Offshore is expected to start production in early 2008. (Robert)