Gale Force Petroleum announces revised financing terms, revised conditional debt restructuring agreement



    MONTREAL, June 23 /CNW Telbec/ - Gale Force Petroleum Inc. (TSX Venture:
GFP, the "Corporation") today announced that it has amended the terms of the
private placement financing it is seeking and has agreed with its secured
lender to revise the conditional agreement to write-down a portion of the
secured loan and convert the balance into shares of the Corporation. For more
details on these proposed transactions, readers should first refer to the full
content of the news released by the Corporation on June 8, 2009.

    Revised Financing Terms

    The Corporation is now seeking to obtain equity financing of
approximately $850,000 (maximum $1,100,000) in a private placement of units
(the "Units") issued at a price of one-half cent ($0.005) per Unit, comprised
of one common share of the Corporation (the "Common Shares") and one-quarter
of one (1/4) warrant per Common Share (the "Warrants"). Each whole Warrant
shall entitle its holder to purchase one (1) Common Share for twelve (12)
months from the Closing Date at a purchase price of five cents ($0.05) per
Common Share. In the event that the common shares of the Corporation are
consolidated, the holder of each consolidated Warrant shall be entitled to
purchase one (1) consolidated Common Share at a price equal to the
consolidation ratio multiplied by one-half cent ($0.005) per consolidated
Common Share, subject to a minimum of ten cents ($0.10) per Warrant Share. By
way of example, following a shares consolidation on a 50:1 basis, the holder
of each consolidated Warrant would be entitled to purchase one (1)
consolidated Common Share at a price of twenty-five cents ($0.25) per
consolidated Common Share (=$0.005 x 50). The private placement is subject to
TSX Venture Exchange and other customary regulatory approvals.

    Revised Conditional Agreement with Lender

    Under a new conditional agreement with the holder of its $2,030,000
secured loan, Primatlantis Capital L.P. (the "Lender"), the Lender would
write-down $1,380,000 of the loan and convert the remaining $650,000 into
shares at a price of one-half cent ($0.005), which would result in the Lender
being issued 130,000,000 shares in a shares for debt transaction
(collectively, the "Conditional Agreement").

    ABOUT GALE FORCE PETROLEUM INC.(TM) - www.GaleForcePetroleum.com

    Gale Force Petroleum is a public corporation focused on acquiring and
exploiting unconventional and conventional gas resources in mature basins,
building shareholder value through growth. It owns producing natural gas
properties in Alberta, Canada and in Kentucky, USA.

    "The TSX Venture Exchange has not reviewed this release and therefore
    does not accept responsibility for its adequacy or accuracy."




For further information:

For further information: Michael McLellan, Chairman and CEO, (514)
333-9292

Organization Profile

Gale Force Petroleum Inc.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890