DALLAS, May 29, 2014 /CNW/ - Gale Force Petroleum Inc. (TSXV: GFP) (OTCQX: GFPMF) (the "Company") today announced that it has sold non-core properties in East Texas, for an aggregate selling price of US$2.15 million.
"The property divestitures have allowed for debt repayments that have strengthened Gale Force's balance sheet, and have also freed up capital to continue investments in core properties to grow production and increase asset values," said Michael McLellan, Chief Executive Officer.
With the proceeds from the sale of the properties, the Company paid down US$1.0 million on its bank loan facility, repaid US$345,000 of the US$600,000 short-term loan to Primatlantis Capital, L.P. and will pay $93,000 in fees associated with the sale of the properties, comprised of $60,840 in cash and $36,680 in common shares of the Company, subject to the approval of the TSX Venture Exchange.
The Company's bank loan facility now stands at $4.75 million, has an interest rate of 5.0% and continues to be interest-only until after the next borrowing base redetermination is carried out in September, 2014. The Company's short-term loan now stands at US$255,000, and has a maturity date of September 30, 2014.
ABOUT GALE FORCE PETROLEUM INC. − www.GaleForcePetroleum.com
Gale Force Petroleum is a public corporation focused on acquiring and exploiting underdeveloped oil and gas reserves in mature basins, bringing operational expertise and capital to lower-risk, development-type projects. The Company currently owns producing oil and gas properties in Texas, Tennessee and West Virginia.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Gale Force Petroleum Inc.
For further information: Michael P. McLellan, CFA, Chief Executive Officer at +1.888.440.3411.