GALE FORCE PETROLEUM ANNOUNCES NEW $15 MILLION BANK FACILITY

MONTREAL, Dec. 16 /CNW Telbec/ - Gale Force Petroleum Inc. (TSX Venture: GFP, the "Company") today announced that it has obtained a new secured bank facility from Green Bank, with a $15 million face note and a $2.5 million borrowing base (the "Bank Loan"), replacing the Company's former bank facility.  The borrowing base of the Bank Loan is determined as a fraction of the proved developed producing reserves of the Company. The Bank Loan has a maturity date of May 1, 2012 and bears interest of 5% per annum.

"The new bank facility with Green Bank provides additional capital to the Company at a low-interest rate allowing the Company to continue to develop our properties and finance new acquisitions that are currently in the pipeline", said Michael McLellan, Chairman and CEO. "With a solid bank lender, Gale Force Petroleum is well positioned to continue to expand its portfolio of oil and gas properties."

Green Bank is a rapidly-growing commercial and retail bank based in Texas, USA, which expects a significant portion of its lending growth to occur in the oil and gas sector.

The Bank Loan has customary financial requirements, which include maintaining positive working capital, EBITDA interest coverage and asset ratios, but also the requirement that the Company hedge 70% of the anticipated oil and gas production of its proved developed producing reserves. This hedging both mitigates the risks associated with the debt to both the bank and the Company, and permits a higher borrowing base on the Bank Loan.

ABOUT GALE FORCE PETROLEUM INC. www.GaleForcePetroleum.com  
Gale Force Petroleum is a public corporation focused on acquiring and exploiting 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 "Business Risks" in the Corporation's periodic filings on SEDAR, for example, in its Management Discussion and Analysis for the annual exercise ended June 30, 2010. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Corporation does not assume the obligation to update any forward-looking statements.

"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 release."


SOURCE Gale Force Petroleum Inc.

For further information: For further information:

Michael McLellan, CFA, Chairman & CEO, +1.514.221.2030

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