Offshore staff

GFI Oil & Gas Corp. has a farm-in agreement with Transworfld Seruway Exploration Ltd. for a 22.5% interst in Seruway Production Sharing contract offshore North Sumatra, Indonesia. The agreement is pending government approval.

Seruway encompasses more than 1 million acres and 7 of 16 wells drilled there have found hydrocarbons.

GFI has committed to a $5-million 3D seismic survey this year, plus as much as $12 million for a 2007 development well.

6/27/06