GALE FORCE PETROLEUM ANNOUNCES ANNUAL RESERVES ESTIMATES
MONTREAL, Oct. 27 /CNW Telbec/ - Gale Force Petroleum Inc. (TSX Venture: GFP, the "Company") announced that it will publish its annual oil and gas disclosure on SEDAR today, a summary of which is provided below.
Over the past 6 months, the Company has concluded five acquisitions with 781,650 barrels of proved oil reserves and 785,100 mcfs of proved natural gas reserves, estimated at June 30, 2010 to have a net present value of $25,149,280," said Michael McLellan, Chairman and CEO of Gale Force Petroleum Inc. Our strategy is to continue purchasing and developing undervalued, oil and gas properties in mature basins in the Gulf Coast and Central USA, with existing oil and natural gas production plus additional production opportunities, building scale into its operations and increasing oil and natural gas production."
In a report entitled "Appraisal of Certain Oil and Gas Properties Owned by Gale Force Petroleum Inc. Located in Oklahoma, Tennessee, and Texas as at June 30, 2010", dated October 7, 2010, the reserves of the Company were estimated by an independent qualified reserves evaluator, Michele K. Mudrone, P. Eng., of MKM Engineering, as set forth in the following table:
Reserve Category | Light & Medium Oil |
Natural Gas |
Future Net Income (US$s) |
Present Value of Future Net Income Before Income Taxes @ 10% Discount Rate (US$s) |
Net Reserves (bbls) |
Net Reserves (mcfs) |
|||
Proved Developed Producing | 183,860 | 188,400 | $10,114,350 | $5,434,120 |
Proved Developed Non-Producing | 503,240 | 64,850 | $28,042,880 | $13,225,080 |
Proved Undeveloped | 94,550 | 531,850 | $9,658,520 | $5,033,810 |
Total Proved | 781,650 | 785,100 | $47,915,750 | $25,149,280 |
Probable | 2,430 | - | $52,720 | $38,730 |
Total Proved Plus Probable | 67,400 | 785,100 | $47,968,470 | $25,188,010 |
The reserves were estimated and valued using Sproule Associates Ltd. price forecast as at June 30, 2010. Please note that the estimated values disclosed herein do not represent fair market value.
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 "Business Risks" in the Corporation's periodic filings on SEDAR, for example, in its Management Discussion and Analysis for the annual exercise ended June 30, 2009. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Corporation does not assume the obligation to update any forward-looking statements.
"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."
For further information:
Please contact:Michael McLellan, CFA, Chairman & CEO, +1.514.221.2030
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