Gallic announces termination of private placement

CALGARY , Dec. 14 /CNW/ - Gallic Energy Ltd. ("Gallic" or the "Company") (TSXV: GLC) announced today that it will not be proceeding with its previously announced private placement. On October 14, 2009 , Gallic announced a non-brokered private placement of up to 13,333,333 class A common shares at a price of $0.15 per share for gross proceeds of up to Cdn $2 million . Gallic has decided to terminate the private placement. Management and the Board are in discussions with agents and institutions to replace the terminated financing with one which suits the Company's requirements.

Gallic Energy Ltd. has 19,716,154 class A shares outstanding, and trades on the TSX Venture Exchange under the symbol GLC.

Forward-looking Statements

This press release contains forward-looking statements. Any statements that are contained in this press release that are not statements of historical fact may be considered forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects" and similar expressions. Forward-looking statements in this press release include, but are not limited to statements concerning the potential replacement of the terminated private placement.

Although Gallic believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Gallic can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These forward-looking statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses and health, safety and environmental risks), acquisitions, commodity price and exchange rate fluctuation and uncertainties resulting from competition from other producers and ability to access sufficient capital from internal and external sources. Additional information on these and other factors that could affect Gallic's operations and/or financial results are included in Gallic's reports on file with Canadian securities regulatory authorities.

Readers are cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

The forward-looking statements contained in this press release are made as of the date hereof and Gallic undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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: Mr. Mark Woods, President and Chief Operating Officer, Tel: [phone], Fax: [phone], [email protected]