Gallic announces private placement

    GALLIC ENERGY LTD. (TSX Venture Exchange: GLE.A)

    CALGARY, Jan. 2 /CNW/ - Gallic Energy Ltd. along with its wholly owned
subsidiaries (collectively, "Gallic" or the "Company") is pleased to announce
a non-brokered private placement of up to 75,000,000 common shares at a price
of $0.02 per share for gross proceeds of up to $1,500,000. The Company
anticipates that insiders and other non arm's length parties will participate
for up to a maximum of 25% of this private placement, being 18,750,000 shares
and $375,000 of the total gross proceeds. The Company intends to pay a
finders' fee to registered dealers in connection with this private placement,
to be paid in shares equal to up to 10% of the shares subscriber for.
    The securities issued pursuant to this private placement will be subject
to a four-month hold period. The gross proceeds are intended to be used for
anticipated working capital costs to take the Company through the first year
of its operations on the Ger and Ledeuix permits in France, and to enable the
Company to continue to evaluate further opportunities. The private placement
is subject to applicable regulatory approvals, including TSX Venture Exchange
    The securities will not be registered with the U.S. Securities and
Exchange Commission and may not be offered or sold within the United States
without registration or an applicable exemption from the registration
requirements of the United States Securities Act of 1933 and any applicable
state securities laws.

    Gallic's objective is to build an inventory of significant oil and gas
prospects with varying risk profiles in politically and economically stable
jurisdictions, on which it can commence operations. The common shares of
Gallic Energy Ltd. are listed on the TSX Venture Exchange under the symbol

    Forward-looking Statements

    This press release contains forward-looking statements concerning the
Company's expectations as to operations, continued evaluation of expansion of
its oil and gas property interests and concerning the Company's proposed
financing. These statements are based on current expectations that involve a
number of risks and uncertainties, which could cause actual results to differ
from those anticipated. These risks include, but are not limited to: the risks
associated with the oil and gas industry (e.g., operational risks in
development, exploration and production; delays or changes in plans with
respect to exploration or development projects or capital expenditures; the
uncertainty of reserve estimates; the uncertainty of estimates and projections
relating to production, costs and expenses, and health, safety and
environmental risks), acquisitions, commodity price, price and exchange rate
fluctuation and uncertainties resulting from competition from other producers
and ability to access sufficient capital from internal and external sources.
Additional information on these and other risk factors that could affect the
Company's operations and/or financial results are included in the Company's
reports on file with Canadian securities regulatory authorities. The reader is
cautioned not to place undue reliance on these statements, as there can be no
assurance that the plans, intentions or expectation upon which they are based
will occur. By their nature, forward-looking statements involve numerous
assumptions, known and unknown risks and uncertainties, both general and
specific, that contribute to the possibility that the predications, forecasts,
projections and other forward-looking statements will not occur or that actual
results would differ materially from estimated or implied results.
    The forward-looking statements or information contained in this news
release are made as of the date hereof and the Company undertakes no
obligation to update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events or
otherwise, unless so required by applicable securities laws.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

For further information:

For further information: Mr. Richard W. DeVries, Chairman and Chief
Financial Officer, Tel: (718) 874-8319, Fax: (403) 770-8810

Organization Profile

Gallic Energy Ltd.

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