MONTREAL, April 19 /CNW Telbec/ - Gale Force Petroleum Inc. (TSXV: GFP) ("Gale Force" or the "Company") today announced that it has obtained a $300,000 increase in its 60-day interim loan from an arms-length shareholder (the "Bridge Loan"), which now totals $600,000.
"As before, the purpose of the Bridge Loan is to ensure the development of our properties in the short-run" said Michael McLellan, Chairman and CEO. "We expect to put the funds to good use to increase oil production, and to repay the loan swiftly when additional financing is concluded."
The Bridge Loan earns interest of 1.25% per month and is secured by the Company's assets and is subordinate to the senior facility provided by the Company's bank. It is a requirement that the Bridge Loan is reimbursed in priority out of the net proceeds of any future financing concluded by the Company, and that the funds are used for the development of the Company's properties.
ABOUT GALE FORCE PETROLEUM INC. − www.GaleForcePetroleum.com
Gale Force Petroleum is a public corporation focused on acquiring and exploiting 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 and Tennessee.
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 are based on assumptions and estimates that are subject to various risks and uncertainties, including the risks disclosed under the heading "Risks and Uncertainties" in the Company's periodic filings on SEDAR, for example, in its Management Discussion and Analysis for the year ended June 30, 2010. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statements, except as required under applicable law.
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