GFI Oil plans private placement to finance oil, gas projects development

Calgary-based oil firm listed in Canada's TSX Venture Exchange GFI Oil & Gas Corporation announced on Friday intention to raise up to C$44.8 million of funds through private placement.

The company said it intendedto use the proceeds from the Private Placement for the on-going development of its Indonesia and Thailand gas and oil projects and for general working capital purposes.

In Indonesia, GFI has GFI holds a 25% interest in two ready-to-be-developed blocks, namely Asahan PSC and Glagah Kambuna TAC offshore North Sumatra, operated by UK firm Serica Energy. The first production from the Glagah Kambuna is targeted for 2008 at initial rates of approximately 50 million cubic feet per day of gas and 5,000 barrels per day of condensate.

The company also has 22.5% non-operating interest nearby Seruway PSC.

"The Corporation, or its partner, has entered into or is currently negotiating all of the drilling, platform, pipeline and floating production storage vessel (FPSO) contracts required to complete its developments in Indonesia and Thailand scheduled for first production in 2008. The proceeds of the Private Placement will cover approximately 68% of the estimated remaining 2006, 2007 and 2008 capital requirements for the Corporation's projects currently sanctioned and under development. The remainder of the capital requirements will be paid from future equity or debt financings," the company said.(alex)