Gale Force Petroleum announces conditional debt restructuring agreement, letter of intent to purchase new property and refinancing plans

    MONTREAL, June 8 /CNW Telbec/ - Gale Force Petroleum Inc. (TSX Venture:
GFP, the "Corporation") today announced that it has reached a conditional
agreement with its lender to write-down a portion of its secured loan and
convert the balance of the loan into shares of the Corporation. The
Corporation also announced that it signed a letter of intent to purchase a 50%
working interest in an oil and gas property in Seminole County, Oklahoma.
Finally, the Corporation announced that it is seeking to raise proceeds of
approximately $850,000 in a private placement through the issuance of common
shares. The results of these transactions - if they are concluded - will be to
completely eliminate the Corporation's secured loan, improve the size and
potential of the Corporation's oil and gas reserves and provide sufficient
equity capital and operational cash flow to continue as a going concern.

    Secured Loan Agreement

    The Corporation has reached an agreement with the holder of its
$2,030,000 secured loan, Primatlantis Capital L.P. (the "Lender") to
write-down $1,430,000 of the loan and convert the remaining $600,000 into
shares at a price of one-half cent ($0.005), which would result in the Lender
being issued 120,000,000 shares in a shares for debt transaction
(collectively, the "Conditional Agreement"). The Conditional Agreement is
conditional upon the Corporation raising a minimum of $850,000 in equity in
the private placement (described below) and meeting other operational
conditions. In exchange for writing-down $1,430,000 of the loan, the
Corporation would assign to the Lender the right to receive the first
$1,430,000 million in net proceeds from a litigation brought by the
Corporation. The shares for debt conversion is subject to the approval of the
Corporation's shareholders and subject to the approval of the TSX Venture
Exchange and other customary regulatory approvals.

    Letter of Intent to Purchase the Seminole County Property

    The Corporation today signed a letter of intent to purchase a 50% working
interest in an oil & gas property with 13 existing wells in Seminole County,
Oklahoma (the "Seminole County Property") for USD$270,000. The vendor of the
Seminole County Property is at 'arm's-length' from the Corporation. The
acquisition of the Seminole County Property is subject to due diligence and
would entail a development program for the completion and activation each of
the wells to bring them on production. The purchase of the Seminole County
Property would be expected to close on or about the end of June, 2009.

    Private Placement

    The Corporation is seeking to obtain equity financing of approximately
$850,000 in a private placement of common shares of the Corporation issued at
a price of one-half cent ($0.005) per share (the "Common Shares"). By way of
example, if $850,000 is invested in the private placement at these terms,
170,000,000 shares will be issued to new investors. The Common Shares issued
would be subject to a four-month hold period. Insiders of the Corporation
would potentially invest approximately 10% of the gross proceeds of the
private placement. The proceeds of the financing would be used by the
Corporation to finance exploration and development expenditures on its
properties, for the purchase and development of the Seminole County Property
(or other properties) and for general corporate purposes. The private
placement is part and parcel with both the Conditional Agreement with the
Lender and with the purchase of the Seminole County Property. The private
placement is subject to TSX Venture Exchange and other customary regulatory
    If the proposed shares for debt and the private placement transactions
are concluded, the Corporation would be expected to issue approximately 320
million common shares. The Corporation would then implement a consolidation of
its common shares on a 50:1 basis following then approval of the shareholders.
    In any case, the proposed transactions - if they are concluded - would be
highly dilutive to existing shareholders. In light of the Corporation's
secured loan and current capital market conditions, the Corporation does not
believe that any other deal is possible under the circumstances that would
preserve as much (or any) value for the shareholders. Further details as to
any potential transactions will be announced when available.


    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.

    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 - especially but not limited to any geological or
reservoir information not supported by a NI 51-101 report - are based on
assumptions and estimates that are subject to various risks and uncertainties
including but not limited to geological risk, engineering risks, market risk
and the risks disclosed under the heading "Business Risks" in the
Corporation's periodic filings with Canadian securities regulators, including
most recently in its Management Discussion and Analysis for the annual
exercise ended June 30, 2008 available on SEDAR. 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.

    "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)

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