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I live in a remote location without cellular or wifi based service and just started using the location aware feature of OmniFocus. I am still able to use my GPS in my iPhone but it appears that OmniFocus for iPhone relies on a network connection for the location awareness to work. When I am at home on a wifi connection hitting the "location" button works without issue however when I'm out near a location I've setup with GPS but no network then it doesn't find any locations.

I did notice that when I'm attached to a network the locations on my contexts update with the location name but when I'm off network the location names are not there -- just the GPS coordinates.