DALLAS, Nov. 18, 2014 /CNW/ - Gale Force Petroleum Inc. (TSXV: GFP) (OTCQX: GFPMF) ("Gale Force" or the "Company") today announced that it has reorganized its corporate structure to reflect the declining size of its operations, as it continues to execute its plans to sell properties to free-up capital.
The Company's Chief Operating Officer, Emery Johnson, who is also a large shareholder of the Company, has voluntarily stepped down. "I would like to thank Mr. Johnson immensely for his exemplary contribution since 2011," said Michael McLellan, Chief Executive Officer. "Mr. Johnson was responsible for overseeing well-run, cost-effective operations, and we couldn't have had the successes we did without him".
Two other Company positions have been eliminated recently, and a further two positions have been reduced to half-time, also reflecting the Company's now smaller operations.
Common Share Issuances
As announced on August 18, 2014, the Company was to issue common shares in payment of Finder's fees, Director fees, Consulting fees and legal fees. Since then, the Company has issued 236,114 common shares in payment of the Finder's fees, which represented CA$17,385.46 of the total CA$105,184 worth of common shares issuances announced on that date, leaving $87,799 still payable.
The Company has announced that it will now issue common shares of the Company to settle amounts owing totalling CA$124,424 (instead of the previously announced $87,799), subject to TSX Venture Exchange approval. In the aggregate, 2,488,474 common shares of the Company will be issued, all at an issue price of CA$0.05 per share.
These share issuances are part of the Company's plans to conserve cash and provide ownership in the Company to key decision makers. As a result, the Company will be issuing common shares for all Directors' fees earned in 2014, as well as a $54,943 reduction in cash compensation of Managers.
Stock Options Issuances
The Company also announced that it has issued stock options to Directors, Officers, Employees and Consultants, increasing the number of stock options issued under its Stock Option Plan from 3,650,000 to 7,900,000. All stock options issued have an exercise price of CA$0.06 per share, vest in six equal quarterly amounts over 18 months or immediately upon the closing of a Strategic Transaction, and expire the later of 90 days following the termination of the individual's employment with the Company or one year following the closing of a Strategic Transaction. The intent of the stock options is to incentivize and align the interests of Directors, Officers and Employees with the interests of shareholders. The stock options issuance represents the majority component of compensation paid to Directors and a significant part of the compensation to Officers and Employees, further reducing cash salaries and fees paid by the Company.
ABOUT GALE FORCE PETROLEUM INC. − www.GaleForcePetroleum.com
Gale Force Petroleum is a public corporation focused on acquiring and exploiting underdeveloped 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, Tennessee and West Virginia.
Neither the 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: Michael P. McLellan, CFA, Chief Executive Officer at +1.888.440.3411.