GFI updates Indonesian operations

Calgary-based oil firm announced its Third Quarter 2007 Financial and Operating Results on Wednesday. The following is an excerpt on Indonesian operations.

Glagah Kambuna TAC (Offshore N. Sumatra, GFI 35%, Operator: Serica Energy)

In the Glagah Kambuna TAC, GFI and the operator drilled a well in October 2005 that had an initial well test of 17 mmcf of gas and 1,600 barrels of condensate per day. The operator recently completed a 450 square kilometre 3-D seismic program, with the final data processing scheduled for completion in June 2007. Based on the initial results of the survey, GFI and the operator have delineated a number of interesting prospects and leads. We have also completed a seismic inversion and other attribute work on the 3D seismic volumes. The inversion has identified the location for the next two development wells for the field. Initial work has also confirmed a larger gas column than originally indicated by the discovery test well. GFI has identified a number of new exploratory leads from the new 3-D seismic. The operator expects to install a platform and drill the first of the initial field development wells for the Kambuna field by the fourth quarter of calendar year 2007 and projects first production for the fourth quarter of 2008.

Seruway PSC (Offshore North Sumatra, GFI 22.5%, Operator: Transworld Seruway Exploration )

In the Seruway Production Sharing Contract, the operator has completed a 100 square kilometre 3-D seismic program to delineate the location of the next development well for the Gurame Field. The seismic survey was completed in February 2007 and the data processing will be completed by June 2007. The operator anticipates drilling a well in the Gurame Field in the fourth quarter of 2007.

Asahan PSC (Offshore North Sumatra, GFI 35%, Operator: Serica Energy)

The operator of the field was unsuccessful in satisfying the regulatory authority request prior to December 16, 2006, which was the end of the current exploration period. The Company and the operator continued to pursue negotiations with the Indonesian authorities to gain an extension to, or recapture the PSC. Based on the fact that the operator has yet to receive an extension to the PSC, the Company is writing off their investment with respect to the property of approximately $7,831,000. (End of excerpt)