MONTREAL, Feb. 1 /CNW Telbec/ - Gale Force Petroleum Inc. (TSX Venture: GFP) (the "Company") today announced that it has concluded a private placement financing for gross proceeds of CA$1,080,302, through the issuance of 3,601,008 units ("Units") at $0.30 per Unit.  Each Unit is comprised of one common share of the Company and one common share purchase warrant with an exercise price of $0.50, expiring July 31, 2012.

In connection with the private placement, the Company paid an aggregate of $70,988 in commissions and issued an aggregate of 32,000 Units and 194,400 non-transferable broker's warrants ("Broker's Warrants") to members of the selling group and various other finders.  Each Broker's Warrant entitles its holder to acquire one Unit at an exercise price of $0.30 at any time on or before July 31, 2012.

The selling group included All Group, BMO Nesbitt Burns, Canaccord Capital, HSBC Securities (Canada), Odlum Brown and Raymond James, with Kingsmont Investment Management acting as agent, all of which are at arm's length from the Company.

All of the securities issued by the Company in connection with this private placement are subject to resale restrictions which expire on June 1, 2011.

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.

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

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890