- Announces 3D Seismic Purchase, Increases Working Interest -
DALLAS, TX, Oct. 3, 2012 /CNW Telbec/ - Gale Force Petroleum Inc. (TSXV: GFP) (OTCQX: GFPMF) (the "Company" or "Gale Force") today announced that it has commenced drilling of a well at its Texas Reef Properties. It also announced that it has come to agreements to acquire additional working interests in the Texas Reef properties and to purchase 2D and 3D seismic data covering the properties.
"In the last three months, we have doubled our acreage position, increased our working interest, and acquired additional geophysical data to support the Texas Reef project," said Michael McLellan, Co-Chairman & CEO. "This week we are spudding the first well of what we expect to be a 10-well low-risk PUD drilling program at Texas Reef over the next 18 - 24 months, and this does not include the drilling and development plans we have at our other properties."
The well drilled this week at the Texas Reef properties is the first of a 4-well company-wide low-risk, PUD (proved undeveloped reserves) drilling and completion program that is expected to be completed around the end of the first quarter of 2013. Further wells are expected to be drilled thereafter throughout the Company's properties.
The additional working interests purchased by the Company will increase its ownership throughout the 4,100+ acre Texas Reef properties to approximately 82.5%, for which the Company shall pay US$259,950 through the issuance of 866,500 common shares at a price of CA$0.30 per share
The 2D and 3D seismic contributes to a greater geological understanding of the Texas Reef properties, and should reduce risks and potentially improve the economics of wells being drilled. In exchange for the seismic, the Company shall pay $83,333 through the issuance of 250,000 Units of the Company at $0.30 per Unit, each Unit being comprised of one common share and one warrant with an exercise price of $0.30 expiring April 10, 2014.
All securities issued shall be subject to a minimum 4-month hold period. Half of the common shares in the Units shall have a 12-month hold period, and the other half shall have an 18-month hold period. All transactions are subject to the acceptance of the TSX Venture Exchange.
ABOUT GALE FORCE PETROLEUM INC. − www.GaleForcePetroleum.com
Gale Force Petroleum is a public corporation focused on acquiring and exploiting underdeveloped and 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, Tennessee and West Virginia.
"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:
Michael McLellan, CFA, Co-Chairman & CEO, +1.514.221.2030