DALLAS, May 22, 2013 /CNW/ - Gale Force Petroleum Inc. (TSXV: GFP) (OTCQX: GFPMF) (the "Company" or "Gale Force") today announced that it has reached agreements to purchase two sets
of minority working interests in its Texas Reef Properties, which will
increase its ownership in such properties by approximately 10%, to a
total of 90%. The interests are to be purchased from two sellers for
total consideration of 885,000 common shares of the Company and
$240,000 in cash, paid in six monthly installments of $40,000.
"These working interests will increase the Company's ownership in its
highly-profitable wells at the Texas Reef Properties, as well as in the
prospective acreage and 5-mile gas gathering line system," said Michael
McLellan, Co-Chairman and CEO. "The other advantage of this transaction
is that it simplifies the ownership structure and operation of the
properties, making them a more attractive part of the Company as we
seek a strategic alternative."
The closing of the acquisition of the Texas Reef Properties interests is
subject to the approval of the TSX Venture Exchange.
Gale Force also announced that it has issued a total of 3,700,000
incentive stock options to its officers and employees, including
2,500,000 options granted to Michael McLellan, Co-Chairman and CEO, and
600,000 options granted to Emery Johnson, COO. All stock options are
subject to the terms of the Company's stock option plan, have an
exercise price of $0.15 and an expiry date of May 23, 2013, and vest in
six equal quarterly installments over a period of 18 months, subject to
an accelerated vesting and expiry date in the event that the holder of
the options is terminated from the Company without cause. The grant of
these incentive stock options reflects the recommendations resulting
from a recently concluded compensation study that was initiated by the
Board of Directors in 2012, and is intended to align the interests of
the Company's officers and employees with those of its shareholders in
the context of the Company's strategic review.
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.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release contain forward-looking
statements. All forward-looking statements are based on the Company's
current expectations, estimates, projections, beliefs and assumptions
based on information available at the time the statement was made and
in light of the Company's experience and its perception of historical
trends. Some of the forward-looking statements may be identified by
words like "expected", "subject to", "will be" and similar expressions.
In addition, all other statements that address expectations or
projections about the future, including statements about potential
future transactions, are forward-looking statements. Forward-looking
statements are not guarantees of future performance and involve a
number of risks and uncertainties, some that are similar to other oil
and gas companies and some that are unique to the Company, and the
other risks described in the Company's continuous disclosure filings
with securities regulators available under the Company's profile at www.sedar.com. The Company's actual results may differ materially from those
expressed or implied by the Company's forward-looking statements and
you are cautioned not to place undue reliance on them. The Company does
not assume any obligation to update any forward-looking statements
contained in this press release, except as required by 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 release.
SOURCE: GALE FORCE PETROLEUM INC.
For further information:
Michael McLellan, CFA, Co-Chairman & CEO, +1.888.440.3411