MONTREAL, March 29 /CNW Telbec/ - Gale Force Petroleum Inc. (TSX Venture: GFP, the "Corporation") today provided an update to investors concerning the closing date of the transactions that were closed in trust on February 10, 2010 (the "Transactions"), which are now expected to be completed before the end of next week.
The Transactions closed in trust include:
- The purchase of three oil and gas properties in Texas, Oklahoma and
- The debt forgiveness and conversion transaction with the Corporation's
secured creditor, and;
- An equity financing of units for minimum gross proceeds of $1,507,500
and maximum gross proceeds of $3,500,000; each unit being issued would
be issued at a price of $0.25 and would be comprised of one common
share of the Corporation and one-half of a warrant with an exercise
price of $0.375 and a term of one year.
For more details concerning the Transactions, please see the news released by the Corporation on February 10, 2010 and March 12, 2010.
The Corporation had received the conditional approval of the TSX Venture Exchange for the closing of the Transactions, which required that the Corporation meet various conditions including the filing on SEDAR of a full disclosure document providing all pertinent details about eh purchase of the target assets (the "Filing Statement"). The Corporation now anticipates publishing the Filing Statement on SEDAR next week, at which time the Transactions will be completed and released from escrow.
ABOUT GALE FORCE PETROLEUM INC. - www.GaleForcePetroleum.com
Gale Force Petroleum is a public corporation with a focus on the development and exploitation of oil and gas resources in mature basins, building shareholder value by making accretive acquisitions and developing its properties. It will own oil and natural gas properties in Texas, Oklahoma, Tennessee and Kentucky.
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, 2009 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.
"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