DALLAS, TX, Feb. 13, 2013 /CNW Telbec/ - Gale Force Petroleum Inc. (TSXV: GFP) (OTCQX: GFPMF) (the "Company" or "Gale Force") today provided a strategy update and announced the renewal and extension of its bank facility.
The Company has been actively marketing two of its non-core properties for sale, and has generated significant interest in both properties. The rationale for the sale of these properties was provided in a news release by the Company on December 17, 2012. In brief, the Company would intend to take the capital generated by the sale of these properties to continue drilling and development of other properties that it views as having greater return potential.
The Company has also been seeking partners with which to jointly develop its Texas Reef properties. The Company views finding a partner to help finance the development of this asset preferable when compared with issuing equity to finance further development given the current price of the Company's shares. At the current market price, the Company believes that any equity issuance is too dilutive when compared with its current asset value, and is therefore its least attractive financing option.
The Company also announced that its bank line of credit now has a maturity date of July 1, 2014, and continues to be interest only at least until after a borrowing-base redetermination is carried out in May, 2013. The line of credit has an interest rate of 5.0% and the current borrowing base is set at $10 million.
For further insight, Michael McLellan, Co-Chairman and CEO, was recently interviewed by OSIX News, which can be heard here: http://osixmedia.com/media.aspx?subchannel=nbX1JOooZw
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, +1.888.440.3411
