MONTREAL, April 19 /CNW Telbec/ - Gale Force Petroleum Inc. (TSXV: GFP) ("Gale Force" or the "Company") today announced that it has obtained a $300,000 increase in its
60-day interim loan from an arms-length shareholder (the "Bridge Loan"), which now totals $600,000.
"As before, the purpose of the Bridge Loan is to ensure the development
of our properties in the short-run" said Michael McLellan, Chairman and
CEO. "We expect to put the funds to good use to increase oil
production, and to repay the loan swiftly when additional financing is
The Bridge Loan earns interest of 1.25% per month and is secured by the
Company's assets and is subordinate to the senior facility provided by
the Company's bank. It is a requirement that the Bridge Loan is
reimbursed in priority out of the net proceeds of any future financing
concluded by the Company, and that the funds are used for the
development of the Company's properties.
ABOUT GALE FORCE PETROLEUM INC. − www.GaleForcePetroleum.com
Gale Force Petroleum is a public corporation focused on acquiring and
exploiting undervalued 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, Oklahoma and Tennessee.
Forward looking statements:
Statements included herein, including those that express management's
expectations or estimates of our future performance, constitute
"forward-looking statements" within the meaning of applicable securities laws. Forward-looking
statements are based on assumptions and estimates that are subject to
various risks and uncertainties, including the risks disclosed under
the heading "Risks and Uncertainties" in the Company's periodic filings
on SEDAR, for example, in its Management Discussion and Analysis for
the year ended June 30, 2010. Such information contained herein
represents management's best judgment as of the date hereof based on
information currently available. The Company does not assume the
obligation to update any forward-looking statements, except as required
under applicable law.
"Neither 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
SOURCE GALE FORCE PETROLEUM INC.
For further information:
Michael McLellan, CFA, Chairman & CEO, +1.514.221.2030