DALLAS, May 22, 2013 /CNW/ - Gale Force Petroleum Inc. (TSXV: GFP) (OTCQX: GFPMF) (the "Company" or "Gale Force") today announced that it has reached agreements to purchase two sets of minority working interests in its Texas Reef Properties, which will increase its ownership in such properties by approximately 10%, to a total of 90%. The interests are to be purchased from two sellers for total consideration of 885,000 common shares of the Company and $240,000 in cash, paid in six monthly installments of $40,000.
"These working interests will increase the Company's ownership in its highly-profitable wells at the Texas Reef Properties, as well as in the prospective acreage and 5-mile gas gathering line system," said Michael McLellan, Co-Chairman and CEO. "The other advantage of this transaction is that it simplifies the ownership structure and operation of the properties, making them a more attractive part of the Company as we seek a strategic alternative."
The closing of the acquisition of the Texas Reef Properties interests is subject to the approval of the TSX Venture Exchange.
Gale Force also announced that it has issued a total of 3,700,000 incentive stock options to its officers and employees, including 2,500,000 options granted to Michael McLellan, Co-Chairman and CEO, and 600,000 options granted to Emery Johnson, COO. All stock options are subject to the terms of the Company's stock option plan, have an exercise price of $0.15 and an expiry date of May 23, 2013, and vest in six equal quarterly installments over a period of 18 months, subject to an accelerated vesting and expiry date in the event that the holder of the options is terminated from the Company without cause. The grant of these incentive stock options reflects the recommendations resulting from a recently concluded compensation study that was initiated by the Board of Directors in 2012, and is intended to align the interests of the Company's officers and employees with those of its shareholders in the context of the Company's strategic review.
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.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release contain forward-looking statements. All forward-looking statements are based on the Company's current expectations, estimates, projections, beliefs and assumptions based on information available at the time the statement was made and in light of the Company's experience and its perception of historical trends. Some of the forward-looking statements may be identified by words like "expected", "subject to", "will be" and similar expressions. In addition, all other statements that address expectations or projections about the future, including statements about potential future transactions, are forward-looking statements. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, some that are similar to other oil and gas companies and some that are unique to the Company, and the other risks described in the Company's continuous disclosure filings with securities regulators available under the Company's profile at www.sedar.com. The Company's actual results may differ materially from those expressed or implied by the Company's forward-looking statements and you are cautioned not to place undue reliance on them. The Company does not assume any obligation to update any forward-looking statements contained in this press release, except as required by applicable law.
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.
SOURCE GALE FORCE PETROLEUM INC.