2010-12-15-2010-11-29

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
4MM
Description

To acquire interests in E TX Colgate properties, gaining 105 BO/d.

Gale Force Petroleum Inc., Montreal, (Toronto Venture: GFP) plans to acquire interests in properties in East Texas from an undisclosed seller for US$3.75 million in cash and equity.

Gale Force will pay US$2.75 million in cash and C$1 million (US$1 million) in company units, for a total 3.33 million shares at C$0.30 each.

The Colgate properties are within five miles of the company's existing properties in East Texas and consist of mainly 100% working interests in oil and gas properties that are currently producing 105 barrels per day.

Gale Force chairman and chief executive Michael McLellan says, "This acquisition will significantly increase the company's overall production, revenues and cash generation. Due to its proximity and size, the acquisition will build scale and integrate well into our existing operations in East Texas."

Gale Force plans to fund the deal by obtaining a bank-debt financing for a significant portion of the cash purchase price, with the balance of funds required being raised in a private placement of units.

The deal was expected to close by year-end.