MONTREAL, Dec. 30 /CNW Telbec/ - Gale Force Petroleum Inc. (TSX Venture:
GFP, the "Company") today announced that its option to purchase the Colgate Properties
has been extended to January 31, 2010, and it expects to conclude the
purchase by the end of January, 2011.
The Company has also received approval from its bank, Green Bank, for an
increase in the borrowing base of its $15 million bank loan facility to
cover a significant portion of the purchase price, subject to the
Colgate Properties passing due diligence.
As previously disclosed, the Colgate Properties are located within 5
miles of the Company's existing properties in East Texas and consist of
mainly 100% working interests in oil and gas properties that are
currently producing, in the aggregate, 105 barrels per day. The
purchase price for the Colgate Properties is US$2.75 million in cash
and CA$1 million in Units of the Company issued at a price of $0.30 per
Unit. Each Unit consists of one common share of the Company and one
common share purchase warrant of the Company. Each warrant entitles
the holder thereof to purchase one common share for $0.50 for a period
of 18 months following the Closing Date.
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