GFI Oil & Gas Corporation Announces Quarterly Financial and Operating Results for the Three and Six Months Ended December 31, 20

GFI Oil & Gas Corporation (TSX VENTURE:GFI) ("GFI" or the "Company") announced
today that it has filed on SEDAR, its quarterly consolidated financial
statements for the three and six months ended December 31, 2007, related
Management's Discussion and Analysis, and the required certificates from the CEO
and CFO. These documents are available on SEDAR at www.sedar.com or on GFI's
website at www.gfioil.com.


Overview

GFI is a public company listed on TSX Venture Exchange Inc. (symbol "GFI.V")
with core interests in two offshore fields currently under development. Offshore
Thailand, GFI is farming into a 60% ownership interest in the 104,000 acre Block
B8/38, which contains the Bualuang oilfield ("Bualuang PSC"). Offshore northern
Sumatra, Indonesia, GFI owns a 35% non-operated interest in the 94,000 acre
Glagah Kambuna Technical Assistance Contract ("Glagah Kambuna TAC"), where GFI
and the operator are developing the Kambuna Field. GFI also holds a 22.5%
working interest in the 1.1 million acre Seruway Production Sharing Contract
("Seruway PSC") adjacent to Glagah Kambuna TAC offshore northern Sumatra, and
owns a 50% interest in 95,000 gross acres in the Crystal gas project in the USA.


Highlights

On October 15, 2007, the Company closed on a nine month bridge loan for $25.5
million primarily secured by the stock in the holding companies of Glagah
Kambuna and Bualuang assets.


On December 14, 2007, the Company entered into an arrangement (the "Arrangement
Agreement") pursuant to which Salamander Energy plc ("Salamander") indirectly
acquires all of the issued and outstanding common shares of GFI, including the
assumption of current debt outstanding. In conjunction with the acquisition,
Salamander has agreed to provide the Company with credit facilities of $55.5
million and certain of GFI's existing shareholders have agreed to provide
additional financing of $25 million. Additionally, to secure Salamander's
interest in the Arrangement Agreement and the $55.5 million credit facility, GFI
has entered into a Call Option Agreement ("Kambuna Call Option") and Right of
First Refusal Agreement (ROFR) with Salamander, under which the Company has
provided Salamander an option valid for 30 days from a triggering event, to
acquire all the outstanding shares in the holding subsidiary of the Company's
35% working interest in the Glagah Kambuna TAC. All of the above agreements are
available on SEDAR at www.sedar.com.


Operational Highlights

Thailand 

Bualuang PSC 

At the Bualuang field, GFI as technical operator has successfully completed the
installation of the well head jacket and the majority of the sub sea facilities.
The floating production, storage and offloading (FPSO) vessel is expected to
arrive on site in February 2008. The Company recently organized a pre-spud
meeting in Singapore and expects to commence the drilling of a six well
development program on the arrival of the Ensco # 51 rig in early February. 


Indonesia

Glagah Kambuna TAC

The Operator of the Glagah Kambuna TAC has announced that the Global Santa Fe #
136 rig is now on location and has set the platform, and will commence drilling
the two developmental wells and one work over well. The operator is working on
the pipeline and the balance of the facilities required to bring the field to
production by the end of 2008. 


Seruway PSC 

A 100-square kilometre 3-D seismic program was conducted in the Seruway PSC
offshore Northern Sumatra, Indonesia, to determine the location of the next
development well for the Gurame Field. The survey delineated a large structural
feature in which five wells have been drilled between the late 1960's and early
1970's. The Operator of the Seruway PSC expects to spud the Gurame field
delineation well in February of 2008, after the arrival of the Ensco # 1 barge
rig. The Gurame field delineation well will be drilled to a depth of
approximately 9,600 feet in order to evaluate a number of geological zones that
have previously tested gas. The Seruway PSC which covers approximately 1.1
million acres and is located adjacent to the Glagah Kambuna TAC property,
contains six identified Greenfields and more than ten seismically defined
exploration prospects. 


United States

Crystal Gas Project

GFI and the venture operator increased the acreage position to 95,000 acres. We
are evaluating various options to further develop the Crystal gas project and
expect to have the opportunity to drill or cause to be drilled several prospects
in the calendar year 2008.


Financial Highlights

Our interest and other income for the three months and six months ended December
31, 2007 was $315,000 (three months ended December 31, 2006 - $225,000) and
$594,000 (six months ended December 31, 2006 - $313,000). Interest income was
higher due to larger restricted cash and other cash balances. 


We incurred a net loss of $7,426,000 (three months ended December 31, 2006 -
$2,203,000) and $9,334,000 (six months ended December 31, 2006 - $2,717,000) for
the three and six months ended December 31, 2007 respectively. Our total
expenses were $7,741,000 (for the three months ended December 31, 2006 -
$2,203,000) and $9,928,000 (six months ended December 31, 2006 - 3,030,000) for
the three and six months ended December 31, 2007 respectively. 


The substantial increase in our expenses are due to the increase in finance and
interest expenses of $4,928,000 and $5,179,000 for the three and six months
ended December 31, 2007 respectively (the three and six months ended December
31, 2006 - nil). In the current quarter; we accrued $853,000 in interest expense
on the Bridge Loan and the Salamander Debt facility; we also accrued $750,000
and $2,330,000 in commitment fees for the Transaction Standby Loan and the
Salamander Debt facility; and issued 541,486 in commission shares valued at
$510,000 to the Bridge loan lenders. We paid potential senior lenders and their
affiliates $485,000 in the current quarter and $251,000 in the last quarter in
financing and due diligence expenses pending the finalization of the Arrangement
Agreement with Salamander. 


This news release shall not constitute an offer to sell or the solicitation of
an offer to buy the securities in any jurisdiction. The shares offered will not
be and have not been registered under the United States Securities Act of 1933
and may not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements.


ADVISORY - Certain information regarding GFI set forth in this release,
including management's assessment of GFI's future plans, operations and
operational results may constitute forward-looking statements under applicable
securities law and necessarily involve risks associated with oil and gas
exploration, production, marketing, and transportation such as loss of market,
volatility of prices, currency fluctuations, imprecision of reserves estimates,
environmental risks, competition from other producers, currency exchange risks,
uncertain political risk in countries where the operations of GFI take place,
and ability to access sufficient capital from internal and external sources. As
a consequence, actual results may differ materially from those anticipated in
the forward-looking statements.


Issued and Outstanding Common Shares: 168,795,056