Gale Force Petroleum announces new conditional debt restructuring agreement,
intention to purchase new properties, new financing plans and intention to
merge
The Corporation has signed the following agreements:
(1) A new conditional agreement with its secured lender to write-down $1,380,000 of its $2,030,000 secured loan and convert the balance of $650,000 into shares of the Corporation at a price of one-half cent (CAD 0.005) per share. (2) Agreements with vendors of several oil and gas properties in Tennessee, Oklahoma, East Texas and West Texas, enabling the Corporation to conduct due diligence on and purchase working interests in any or all of the properties. (3) A memorandum of understanding was signed to merge with a private oil and gas company, which will remain confidential pending due diligence.
Additionally, the Corporation has announced that it is seeking to raise proceeds of at minimum CAD 850,000 (maximum CAD 5,000,000) via an equity private placement of units containing shares and warrants at a price of one-half cent (CAD 0.005) per share.
The stock of the Corporation will remain halted until further details about the properties it intends to acquire and further information as to the ultimate deal structure are disclosed. Further information will be provided when available.
ABOUT GALE FORCE PETROLEUM INC.(TM) - www.GaleForcePetroleum.com
"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: Michael McLellan, Chairman and CEO, (514) 333-9292
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