DALLAS, TX, Jan. 10, 2012 /CNW Telbec/ - Gale Force Petroleum Inc. (TSXV: GFP) (OTCQX: GFPMF) ("Gale Force" or the "Company") announced today that it exited 2011 with a daily production rate of 275 BOE per day, comprised of 247 barrels of light crude oil per day and 170 MCFs of natural gas per day. The increases in production attained by the Company are the result of the Company's development program, announced on July 25, 2011, which is now 90% completed. The Company expects additional steady increases in daily oil and gas production through the next two quarters, with a daily production target of between 350 and 400 BOE per day by end of June, 2012, from increases in oil production from existing properties.
"The Company has made steady gains in its daily production and cash-flow generation", said Michael McLellan, Chairman and CEO. "We intend to build on this success and continue the rapid growth of operations".
The Company has also signed shares-for-services agreements to settle a total of $124,000 owing to Ruben Alba and Daniel Smith, P.E., for technical oil and gas services rendered during 2011. Mr. Alba will be issued 80,000 common shares of the Company at a price of 21.4 cents per share, to settle amounts owing of $17,000, and Mr. Smith will be issued 500,000 common shares at a price of 21.25 cents per share, plus 500,000 warrants with an exercise price of 33 cents and a term of 24 months, to settle amounts owing of $107,000.
"It is encouraging that some of the Company's technical personnel have elected to take payment in equity", said Mr. McLellan. "We are grateful for their services rendered and the results they have helped us achieve".
The common shares and warrants are subject to a 4-month hold period, and the issuance is subject to TSX Venture Exchange approval.
ABOUT GALE FORCE PETROLEUM INC. − www.GaleForcePetroleum.com
Gale Force Petroleum is a public corporation focused on acquiring and exploiting undervalued 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.
Cautionary statement concerning use of BOEs:
Please note that the Company has used the term "BOE" herein, which may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
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 "Risks and Uncertainties" in the Company's periodic filings on SEDAR, for example, in its Management Discussion and Analysis for the year ended June 30, 2010. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statements, except as required under 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."
For further information:
Michael McLellan, CFA, Chairman & CEO, +1.514.221.2030