GALE FORCE BUYS ADDITIONAL TEXAS REEF INTERESTS, RENEWS AND EXTENDS BANK FACILITY
Dallas, February 26, 2014 � Gale Force Petroleum Inc. (TSXV: GFP) (OTCQX: GFPMF) ("Gale Force" or the �Company�) today announced that it has purchased additional interests in its Texas Reef properties, increasing its working interest in its best producing well in the field from 72% to 97%, and eliminating back-in interests to give the Company a 90% working interest or greater throughout the 3,700 acres.
�This is an add-on purchase that makes sense on a cash-flow basis, and also simplifies the ownership structure of the properties, finalizing Gale Force�s series of acquisitions in the area,� said Michael P. McLellan, Chief Executive Officer.
In consideration of the purchase, the Company paid $250,000 cash and issued a $525,000 interest-free note payable, requiring 18 equal monthly payment of $29,167.
The Company also announced that it renewed its bank loan facility with Green Bank, which included an increase in the borrowing base from $5.5 million to $5.75 million and an extension of the maturity date of the facility to July 1, 2015. Also, the next date for a borrowing base redetermination was moved from April 1, 2014 to September 1, 2014, at which time it will be determined if monthly borrowing base reductions will be necessary. The interest rate on the facility remains unchanged at 5% interest per annum. Currently, interest payments are approximately $24,000 per month. |