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GFI Says Work on Bualuang Platforms on Schedule

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Atwater Valley OCS, Gulf of Mexico
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GFI Oil & Gas, serving as the technical operator at Bualuang field located in the Gulf of Thailand, confirms that construction of the production platform is proceeding on schedule and expects the platform will sail out to the Bualuang field for installation in December. All the major contracts needed for first production have been executed and work is progressing on all fronts toward completing the development of the Bualuang field. GFI continues to report first production from Bualuang field is anticipated in approximately 4 months or late first quarter calendar year 2008.

GFI also confirms that Serica Energy, the operator of Glagah Kambuna TAC located offshore in North Sumatra, Indonesia, has informed GFI that the production platform for the Kambuna field will sail in December for installation at the Kambuna field. Drilling and completion operations are anticipated to begin soon thereafter.

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