MONTREAL, Sept. 25 /CNW Telbec/ - Gale Force Petroleum Inc. (TSX Venture: GFP, the "Corporation") today announced several agreements, which could permit the Corporation to stave off bankruptcy, complete its restructuring, and provide a viable future for the Corporation.
The Corporation has signed the following agreements:
(1) A new conditional agreement with its secured lender to write-down
$1,380,000 of its $2,030,000 secured loan and convert the balance of
$650,000 into shares of the Corporation at a price of one-half cent
(CAD 0.005) per share.
(2) Agreements with vendors of several oil and gas properties in
Tennessee, Oklahoma, East Texas and West Texas, enabling the
Corporation to conduct due diligence on and purchase working
interests in any or all of the properties.
(3) A memorandum of understanding was signed to merge with a private oil
and gas company, which will remain confidential pending due
Additionally, the Corporation has announced that it is seeking to raise proceeds of at minimum CAD 850,000 (maximum CAD 5,000,000) via an equity private placement of units containing shares and warrants at a price of one-half cent (CAD 0.005) per share.
The stock of the Corporation will remain halted until further details about the properties it intends to acquire and further information as to the ultimate deal structure are disclosed. Further information will be provided when available.
ABOUT GALE FORCE PETROLEUM INC.(TM) - www.GaleForcePetroleum.com
Gale Force Petroleum is a public corporation focused on acquiring and exploiting unconventional and conventional gas resources in mature basins, building shareholder value through accretive opportunistic acquisitions and development of its properties. It owns producing natural gas properties in Alberta, Canada and in Kentucky, USA.
"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, Chairman and CEO, (514) 333-9292