Key Developments: Petrole Gale Force Inc (GFPMF.PK)
0.18USD
17 Jun 2013
$-0.02 (-7.93%)
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$0.18
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2,000
20,921
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Latest Key Developments (Source: Significant Developments)
Gale Force Petroleum Inc Increases Ownership Of Texas Reef Properties; Announces New CFO
Gale Force Petroleum Inc announced that it has increased its ownership of the Texas Reef Properties, hired a Chief Financial Officer (CFO) and a new Controller, and provided an update on the Great Gulfcan Assets purchase. The Company has purchased an additional 2% working interest in the Texas Reef properties for $130,000, comprised of USD60,000 in cash and CAD70,000 in common shares of the Company issued at a price of CAD0.35 per share. The shares are subject to a 4-month hold period, and the transaction is subject to the acceptance of the TSX Venture Exchange. The purchase increases the Company's ownership of the three existing wells to approximately 77% and the ownership of the remainder of the project including 7,000 gross acres/2,100 net acres to approximately 82%. The Company has also hired Guillaume Dumas, LL.B., as its Interim Chief Financial Officer (CFO), and Nancy Porter, CPA, as its new Controller. Antoinette Lizzi, who stepped down from the position of Chief Financial Officer(CFO), will continue serving the Company as a consultant. The Company has also hired Guillaume Dumas, LL.B., as its Interim Chief Financial Officer, and Nancy Porter, CPA, as its new Controller. Antoinette Lizzi, who stepped down from the position of Chief Financial Officer, will continue serving the Company as a consultant. Full Article
Gale Force Petroleum Inc Buys Wet Gas Marcellus Shale Gas Properties
Gale Force Petroleum Inc announced that it has purchased non-operated interests in the liquids-rich Marcellus shale gas field in Wetzel and Marshall Counties, West Virginia (the Marcellus Properties). The Marcellus Properties consist of approximately 10,000 acres, operated by a multi-billion dollar public oil and gas company with favourable service contracts. As per the terms of the investment, the Company will earn payout of its initial investment plus an internal rate of return (IRR) of 35%, prior to its WIs being reduced by approximately 40%. The initial investment made by the Company for the interests in the existing wells on the Marcellus Properties will be approximately USD1,500,000 for its share of drilling, completions and tie-in costs over the next 3 months. Additionally, the Company has the option to fund its share of any new wells drilled over the next 2 to 3 years on the property, expected to require between $2.5 million and $10 million, depending on the drilling programs determined by the operator of the project. A finder's fee of USD90,000 is payable to IROMAD, a specialized oil and gas consultancy, for its role in sourcing and performing due diligence on the acquisition. To finance the purchase of the Marcellus Properties the Company borrowed CAD500,000 from Palos Merchant Bank L.P. and will conclude a CAD500,000 equity private placement with a strategic US oil and gas investor, Young Capital Partners, for a total CAD1,000,000 in new capital raised. Full Article
Gale Force Petroleum Inc Joins OTCQX
OTC Markets Group Inc. announced that Gale Force Petroleum Inc is now trading on the highest tier of the OTC market, OTCQX. Full Article
Gale Force Petroleum Inc Buys Thunder Properties
Gale Force Petroleum Inc announced that it has purchased properties in South Texas. The Thunder Properties include interests in 795 acres with four producing wells and one salt water disposal well, which are currently producing, in the aggregate, approximately 32 BOE per day (25 bbls of oil and 70 mcfs per day of liquids-rich gas). The purchase price for the Thunder Properties is $1,600,000. Upon closing of the purchase, the Company would own a 100% interest in the production from the Thunder Properties, after which the Company's interests reduce to a 50% working interest ownership in the properties. To finance the purchase, the Company used $900,000 drawn from its $15 million credit facility with an interest rate of 5% per annum, while pledging only 50% of the property as collateral. The credit facility is now drawn to $5.1 million. The remaining $700,000 of the purchase price was financed by the Seller with a $700,000 note maturing April 22, 2012, with $50,000 per month principal payments and an interest rate of 7% per annum. Full Article
Gale Force Petroleum Inc Obtains Increase In Borrowing Base of Line of Credit to $6.1 Million
Gale Force Petroleum Inc announced that it has obtained an increase to $6.1 million in the borrowing base on its $15 million line of credit with Green Bank of Houston, Texas. The line of credit has an interest rate of 5.0% per annum, and is currently drawn to $4.2 million. Full Article
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