MONTREAL, Sept. 4 /CNW Telbec/ - Gale Force Petroleum Inc. (TSX-V: GFP,
the "Corporation") today announced that it has signed agreements with trade
creditors to settle debts totalling $712,250 by the issuance of 1,424,500
common shares of the Corporation at a price of $0.50 per share. The shares to
be issued will be subject to a four-month hold period.
"We very much appreciate the support of these creditors, and I think it
demonstrates a belief in the prospects of the Corporation by our suppliers,
who are people inside the industry who know the industry best," said Michael
McLellan, President and Chief Executive Officer. "This issuance of shares for
debts significantly reduces our short-terms debts and brings us close to
finalizing the clean-up of our balance sheet in accordance with the
restructuring initiated by the Corporation last year. Also, issuing shares for
debt comes with a much lower cost of capital and less dilution than by raising
funds from equity via a private placement."
The issuance of the common shares is subject to TSX Venture Exchange
approval. Disinterested shareholder approval is also required for the payment
of 154,500 common shares to two members of the board, Ron Bourgeois and
Louis-Robert Lemire, who have agreed to be paid in shares in lieu of cash
compensation for non-board related services, as they are not at arm's length
to the Corporation. This disinterested shareholder approval will be sought at
the next Annual General Meeting of the shareholders. All other creditors with
whom settlements have been reached are at arm's length to the Corporation.
ABOUT GALE FORCE PETROLEUM INC. - www.GaleForcePetroleum.com
Gale Force Petroleum is a public oil and gas corporation focused on
acquiring and developing oil and gas properties in North America, building
shareholder value through growth.
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 exercise ended
June 30, 2007 available on SEDAR. 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
"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: Gale Force Petroleum Inc.: Michael McLellan,
President and CEO, (514) 333-9292