GFI Confirms 3-D Program Completed Over Kambuna

GFI Oil and Gas Corporation on Thursday said that a 432-square-kilometer 3-D seismic shoot has been completed by contractor Veritas on the Glagah Kambuna TAC in Indonesia.

GFI, upon receipt of the final processing, will be providing the results of the 3-D seismic program to the Company's independent reserve engineers Mc Daniel and Associates. Details of the updated reserves will be published once the work has been completed by GFI's independent reserve engineers.

GFI's Chief Executive Officer Alex Warmath commented:

"This high-quality 3-D seismic data will allow the company reserve at Kambuna field to have much better definition. Although the Kambuna field has been determined to be commercial, the ultimate size of Kambuna field (with a current 173 foot gas column and no gas water contact defined by drilling) has not yet been established. The new 3-D seismic data will also insure optimal positioning of the bottom hole locations of future wells. The Kambuna field operator, Serica Energy, has a drilling rig under contract and plans to drill two more field development wells in the last half of this year to complete the initial development drilling at Kambuna field."

It is now expected that production from the Kambuna field will commence in the second half of year 2008 which is later than what was reported in our press release of June 2006 when we were expecting production to commence in late 2007. We will be monitoring this situation with Serica, the operator, and will provide further updates regarding this field as information becomes available.

GFI is a TSX venture exchange listed company (symbol "GFI.V"). Core interests are located in two offshore fields currently under development, the 104,000 acre Bualuang oilfield offshore Thailand (60%) and a 35% non-operated interest in the 83,000 acre Kambuna natural gas and condensates project located offshore northern Sumatra, Indonesia. GFI also holds working interests in several other non-operated offshore Indonesia licenses with working interests ranging from 22.5% to 35% that contain a number of other development and exploration projects.

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