DALLAS, Feb. 26, 2014 /CNW/ - Gale Force Petroleum Inc. (TSXV: GFP) (OTCQX: GFPMF) ("Gale Force" or the "Company") today announced that it has purchased additional interests in its Texas Reef properties, increasing its working interest in its best producing well in the field from 72% to 97%, and eliminating back-in interests to give the Company a 90% working interest or greater throughout 3,700 net acres.
"This is an add-on purchase that makes sense on a cash-flow basis, and also simplifies the ownership structure of the properties, finalizing Gale Force's series of acquisitions in the area," said Michael P. McLellan, Chief Executive Officer.
In consideration of the purchase, the Company paid $250,000 cash and issued a $525,000 interest-free note payable, requiring 18 equal monthly payments of $29,167 beginning March 22, 2014 and ending August 22, 2015.
The Company also announced that it renewed its bank loan facility with Green Bank, increasing the borrowing base from $5.5 million to $5.75 million and extending the maturity date of the facility to July 1, 2015. Also, the next date for a borrowing base redetermination was moved from April 1, 2014 to September 1, 2014, at which time it will be determined if monthly borrowing base reductions will be necessary. The interest rate on the facility remains unchanged at 5% interest per annum. Currently, interest payments are approximately $24,000 per month.
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.
Neither the 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 P. McLellan, CFA, Chief Executive Officer at +1.888.440.3411.