Gale Force announces Board of Directors changes and settlement with Iroquois
DALLAS, Nov. 1, 2013 /CNW/ - Gale Force Petroleum Inc. (TSXV: GFP) (OTCQX: GFPMF) (the "Company") announces changes to the composition of its Board of Directors (the "Board"):
Ruben Alba, Guillaume Dumas, Robert Johnson and Scott Paterson have stepped down from the Board in order to allow for the appointment of Allan Bezanson, Harry Knutson and Randy Wilkins, who will join Charles Marleau and Michael McLellan on the newly constituted five-member Board. Mr. Knutson will serve as the Chairman of the Board.
Brief biographies of each new member of the Board are provided at the end of this press release. Information about the new Board members can also be found on the Company's Board of Directors page on its website at www.GaleForcePetroleum.com/Board-of-Directors.
"I look forward to working with Management and the other members of the Board to continue to strengthen and grow the Company. We will use our knowledge and relationships to create positive change for the shareholders," said Harry Knutson, Chairman of the Board.
"The Company thanks each departing member of its Board for their outstanding service to the Company and its shareholders through the Company's turnaround and growth into the valuable business that it is today," said Michael McLellan, Director and Chief Executive Officer. "We are pleased that Harry, Allan and Randy have agreed to lend their considerable talents and expertise to the Board. We look forward to working with our new Board as we continue to focus on creating shareholder value."
These changes to the Board result from an agreement reached with Iroquois Capital Opportunity Fund LP, Iroquois Master Fund Ltd. and various other shareholders acting with them ("Iroquois") which had indicated their intention to engage the Company in a proxy contest regarding the composition of the Company's Board. The Board and Management determined that it was in the best interest of the Company and its stakeholders to arrive at this settlement with Iroquois and thereby avoid the cost and distraction which would have results from a proxy fight with Iroquois at this important juncture.
Under the terms of the Company's settlement with Iroquois, Iroquois has undertaken to support the reconstituted Board until at least the Company's 2014 Annual General Meeting. It was also agreed that the Company will postpone the date of its 2013 Annual General Meeting from November 21, 2013 to December 18, 2013, or such later date as may be determined by the Board. Further details in this regard shall be announced by the Company in due course.
The agreement reached with Iroquois also provides that the Company will reimburse up to $150,000 of the expenses incurred by Iroquois in connection with this matter, $100,000 of which will be paid by the issuance of a secured promissory note payable as to $50,000 on May 1, 2014 and as to the balance in equal monthly installments for the period from June 1, 2014 to December 1, 2014. The remaining $50,000 in expenses will be paid by the issuance to Iroquois of an aggregate of 333,333 common shares, subject to the approval of the TSX Venture Exchange.
New Board member biographies:
Harry L. Knutson
Mr. Knutson has been the Chairman and Chief Executive Officer of Nova Bancorp Group and has been responsible for the growth and performance of the firm since its inception in 1982. Prior to that he held a number of other senior management positions in the financial services industry.In 1997, Mr. Knutson was instrumental in the reorganization of Bonavista Energy Corporation (formerly known as Bonavista Petroleum Ltd.) and continues as an active director. Mr. Knutson is also a director of Novus Energy Inc., Knol Resources Corp. and Petroforte International Ltd. He has previously been a director of AgriMarine Holdings Inc., Kasten Chance Applied Research, Pure Energy Services Ltd. (formerly Canadian Sub-Surface Energy Services Corp.), Serrano Energy Ltd., Terrex Energy Inc., Velo Energy Inc. (formerly Aureus Ventures Inc.) and Western GeoPower Corp. Mr. Knutson earned a joint Honours Bachelor of Arts Degree in Economics and Commerce from Simon Fraser University in 1969 and holds a Canadian Chartered Director designation from The Directors College, McMaster University.
Allan J. Bezanson
Mr. Bezanson has been the Interim President of Range Energy Resources Inc. since September 7, 2012 and the Managing Partner of Cornerstone Capital Partners since February 2010. Mr. Bezanson has also served as the President and Partner of Oballan Capital and Osprey Capital Partners. He began his career in Calgary, where he developed deep energy industry experience, structuring, financing and leading domestic and international mergers and acquisitions for Nowsco, including postings in the Netherlands and Guernsey. Mr. Bezanson served as Managing Director of Nowsco (IFC) BV, where he structured and financed the international operations of Nowsco Well Service Ltd. Prior to Oballan, Mr. Bezanson was the President of a fixed income arbitrage hedge fund, based out of North Carolina and Barbados. Prior to joining Osprey Capital in August of 2005, Mr. Bezanson ran his own boutique advisory firm, Oballan Capital. In 1992, Mr. Bezanson became chairman of the board of Bluewave Energy, and embarked on a roll-up of other energy distribution businesses including the downstream distribution assets of Shell Canada. He served as President and Partner at Phoenix Research and Trading, and President of Protec Trading Inc. until 1997, when he formed Oballan Capital. He has been a director of Hawkstone Energy Corp. (also known as Range Energy Resources Inc.) since April 4, 2011 and Brilliant Resources Inc. since October 8, 2013. He serves as Director of iLOOKABOUT Corp. He served as a director of Longford Energy Inc. since August 8, 2012. Mr. Bezanson has a Bachelor of Commerce from Dalhousie.
Mr. Wilkins is President and Chief Executive Officer of Sydri Energy, Inc. He has over thirty years in the energy industry working in a variety of technical and executive capacities. Mr. Wilkins began his career at Pennzoil Exploration and Production Company as a Field Drilling/Completion Engineer. Later, Mr. Wilkins served in the same capacity for Enron Oil and Gas. Following his employment with Enron, Mr. Wilkins served as Operations Manager for Tana Oil and Gas Corporation. Following the sale of all of Tana's assets to an affiliate of Unocal Corporation in 2000, Mr. Wilkins then served as Vice President of Engineering for Basa Resources, Inc. While serving in that capacity, Mr. Wilkins evaluated, negotiated and acquired over thirty five million ($35MM) dollars of oil and gas properties. In addition, Mr. Wilkins was responsible for all operations and preparation of the company reserve report. In 2003, Mr. Wilkins formed Sydri Energy Partners, Ltd. (SEP) and Sydri Energy Inc. (SEI) to manage non operated working oil and gas interests. In January 2007, Mr. Wilkins elected to devote his full resources and energies to the growth of SEP and SEI. In August 2007, Mr. Wilkins formed Sydri Energy Investment, Ltd., and with SEP, acquired a forty two percent (42%) non operated interest in the Bryan Woodbine Operating Company. In March 2008, SEP acquired an operated interest in the Sinton field located in San Patricio County, Texas. Mr. Wilkins then formed Sydri Operating, LLC to operate and manage those properties.
Mr. Wilkins received a Bachelor of Science Degree in Petroleum Engineering from the University of Texas at Austin in August, 1982 and Mr. Wilkins is a Registered Professional Engineer in the State of Texas. Mr. Wilkins is a current Director for the Texas Alliance of Energy Producers, the Dallas Petroleum Club and Mike Ryan Ministries. Mr. Wilkins is also a current member of the Dallas Producers Club and Dallas Wildcatters.
ABOUT GALE FORCE PETROLEUM INC. − www.GaleForcePetroleum.com
Gale Force Petroleum is a public corporation focused on acquiring and exploiting underdeveloped 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, Tennessee and West Virginia.
Neither the 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.