DALLAS, Dec. 3, 2013 /CNW/ - Gale Force Petroleum Inc. (TSXV: GFP) (OTCQX: GFPMF) (the "Company") today announced that it has signed a Loan Amendment Agreement with its senior lender, Green Bank, and entered into new swap contracts in 2015.
The Company's bank line of credit now has a maturity date of January 1, 2015, remains an interest-only loan at least until a borrowing-base redetermination to be carried out as of April 1, 2014, at which time, should there be no change in the Company's assessed reserves, borrowing base reductions of $75,000 will be required each month. The line of credit has an interest rate of 5.0% and is currently drawn to $5.5 million. Currently, interest payments are approximately $23,000 per month.
The Company also announced that to hedge against fluctuating oil prices, lock-in profitable pricing on some of its oil production, and to meet the requirements of its bank loan facility, it has entered into additional swap contracts. The following table summarizes the oil production swaps now in place for the Company:
|Dec 2013||3,500 bbls||$100.33|
|Jan 2014 - Jun 2014||3,000 bbls||$96.63|
|Jul 2014 - Dec 2014||2,000 bbls||$98.25|
|Jan 2015 - Dec 2015||2,000 bbls||$87.32|
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.