GFI's Development Drilling at Bualuang Pays Off

GFI Oil & Gas Corporation reported the results from the drilling of its first two development wells at the Bualuang field, Thailand. GFI holds rights for a 60% interest in the Block B8/38-Bualuang field.

The initial development well, known as the Bualuang 05, has been drilled and logged to a true vertical depth of 1221 meters sub-sea. Preliminary evaluation of the well logs confirmed the well encountered oil pay over a 25 meter gross interval (approximately 21 meters of net pay). The well encountered porosity averaging 29% and preliminary core analysis indicates permeability averages 809 millidarcies over the pay interval.

The second well, known as the Bualuang 01, has been drilled to a true vertical depth of 1270 meters and logged. Preliminary evaluation of the 01 well logs indicate the well encountered oil pay over a 23 meter gross interval (approximately 20 meters of net pay). This well was not cored and the logs over the pay zone indicate an average porosity of 27%.

Development operations at Bualuang will continue until mid-April 2008.

GFI's Chief Executive Officer Alex Warmath said, "We are pleased with the progress we have made so far in developing the Bualuang Field and with the initial results of the development drilling program currently underway. Our work at Bualuang continues on track, with the FPSO Rubicon Vantage expected on location by late March 2008."