DALLAS, April 12, 2013 /CNW/ - Gale Force Petroleum Inc. (TSXV: GFP) (OTCQX: GFPMF) (the "Company" or "Gale Force") today announced that it has concluded the sale of its Oklahoma Properties for $650,000, as part of a total $6.5 million property sales transaction, previously announced on March 15, 2013. There are only three leases in Gregg & Rusk Counties remaining to be sold as part of the transaction, which will fetch the remaining $300,000 of the total sales price for the properties, expected in June, 2013, per the sale agreement.
"Gale Force has strengthened its balance sheet, streamlined its operations, and freed up capital to invest in its core properties with significant upside potential," said Michael McLellan, Co-Chairman and CEO. "Gale Force is also now a highly attractive target for acquisition or merger, and we will be exploring various strategic transaction options that will re-value the Company in the market."
The properties now sold, the Company is currently producing slightly more than 300 BOE per day and generating nearly $200,000 cash per month from operations.
The Company has begun a development program to increase production on existing properties through a combination of activities, including well reactivations, infrastructure improvements and drilling of new wells. To fund these activities, the Company will use a combination of the proceeds from the property sales and cash generated in operations, and the Company intends to invest over $2.0 million in its existing properties in the next 6 to 9 months.
As a next step in the execution of its strategy to create value for shareholders that was outlined at the end of 2012, the Company will also now be actively seeking strategic partners for investment, merger, acquisition, or business combination that will allow it to either restart accretive growth or re-value the Company in the market.
ABOUT GALE FORCE PETROLEUM INC. − www.GaleForcePetroleum.com
Gale Force Petroleum is a public corporation focused on acquiring and exploiting underdeveloped and undervalued 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, Oklahoma, Tennessee and West Virginia