GFI Oil & Gas Corp. has filed on SEDAR, its interim consolidated financial statements for the three and nine months ended March 31, 2007, related Management's Discussion and Analysis, and the required interim certificates by the CEO and CFO.
Highlights
GFI is an international oil and gas exploration and development company focused on acquiring and developing previously discovered oil and gas fields ("Greenfields"). GFI's current interests are located in Indonesia, Thailand and the United States. Our main interests are in the Glagah Kambuna Technical Assistance Contract in Indonesia, the Seruway Production Sharing Contract in Indonesia and the Bualuang Oil Field located in the Gulf of Thailand.
Thailand
Effective January 10, 2007, GFI has acquired the right to increase its working interest to 60% in the Bualuang Oil Field. Bualuang represents a $63 million capital project (net to GFI) and the Company anticipates first production in the first quarter of 2008. The environmental permit applications for seismic have been approved by the Government. The seismic contract has been awarded and we anticipate completing the seismic shooting by June 2007. We are currently preparing the environmental permit for production and expect to receive approval by the end of 2007. The annual plan of development has already been submitted to the Department of Mineral Fuels and the Government of Thailand.
GFI has made substantial progress toward bringing on first production at the Bualuang Oil Field. On January 27, 2007, we entered into a five-year lease agreement for the floating production, storage and offloading vessel. The design of the production platform has been completed and a contract for the fabrication has been awarded. We have signed a letter of intent for a drilling rig and a barge. We are actively engaged in discussions for support vessels for the drilling program scheduled to begin in January 2008.
Indonesia
Glagah Kambuna TAC
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
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
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.