MONTREAL, Dec. 30 /CNW Telbec/ - Gale Force Petroleum Inc. (TSX Venture: GFP, the "Company") today announced that its option to purchase the Colgate Properties has been extended to January 31, 2010, and it expects to conclude the purchase by the end of January, 2011.
The Company has also received approval from its bank, Green Bank, for an increase in the borrowing base of its $15 million bank loan facility to cover a significant portion of the purchase price, subject to the Colgate Properties passing due diligence.
As previously disclosed, the Colgate Properties are located within 5 miles of the Company's existing properties in East Texas and consist of mainly 100% working interests in oil and gas properties that are currently producing, in the aggregate, 105 barrels per day. The purchase price for the Colgate Properties is US$2.75 million in cash and CA$1 million in Units of the Company issued at a price of $0.30 per Unit. Each Unit consists of one common share of the Company and one common share purchase warrant of the Company. Each warrant entitles the holder thereof to purchase one common share for $0.50 for a period of 18 months following the Closing Date.
ABOUT GALE FORCE PETROLEUM INC. − www.GaleForcePetroleum.com
Gale Force Petroleum is a public corporation focused on acquiring and exploiting 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.
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 "Business Risks" in the Corporation's periodic filings on SEDAR, for example, in its Management Discussion and Analysis for the annual exercise ended June 30, 2010. 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.
"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: For further information:
Michael McLellan, CFA, Chairman & CEO, +1.514.221.2030