DALLAS, TX, Jan. 29, 2014 /CNW/ - Gale Force Petroleum Inc. (TSXV: GFP) (OTCQX: GFPMF) (the "Company") today announced that it has provided a general and strategic update to its shareholders.
Production
The Company's oil and gas production for the quarter ended December 31, 2013 increased to over 18,100 BOE, comprised of 13,200 barrels of oil and 29,100 MCFs of liquids-rich natural gas, as can be seen in the chart (photo):
Technical Review & Disclosure
In the next six months, the Board of Directors of the Company is seeking to conclude the Company's strategic review process. To do this, the Company will first publish a new statement of reserves data in the form required by National Instrument 51-101 (the "Reserves Report") and an Annual Information Form (the "AIF"), expected in or before April, 2014. These new disclosure documents will integrate new engineering, geological and geophysical studies currently being performed on the Company's properties, and will provide shareholders and strategic counterparts alike with additional information about the Company and its assets.
Operating Personnel
The Company has recently hired Christian M. Snyder, a petroleum engineer with over 17 years' experience as a field and reservoir engineer in Texas, to join the Company's operating team as its Chief Engineer. Mr. Snyder's mandate is to design and manage any field operations, and work with third-party engineers, geologists and geophysicists to re-engineer the Company's properties in view of completing the AIF and Reserves Report.
Financings and Non-Core Property Sales
To finance the technical studies, the workover of five wells and the purchase of additional interests in properties already owned by the Company, as well as to cover a working capital deficit, the Company plans to increase its bank line of credit, obtain short-term subordinate loan financing, and to sell non-core properties. Depending on the results of ongoing technical review and its strategic direction, the Company may look at other additional sources of financing.
Shares for Services
As was announced last week, the Company has now issued a total 375,000 common shares for services performed by its Land Manager and an outside consultant.
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.
Cautionary Statement Regarding use of BOE
Please note that the Company has used the term "BOE" herein, which may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
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.
Image with caption: "Historical Production (CNW Group/Gale Force Petroleum Inc.)". Image available at: http://photos.newswire.ca/images/download/20140129_C5945_PHOTO_EN_36021.jpg
For further information:
Michael McLellan, CFA
Chief Executive Officer
Gale Force Petroleum Inc.
416-543-8047
MMcLellan@GaleForcePetroleum.com
