NR - Gale Force Petroleum Obtains Increase in Borrowing Base of Line of Credit to $6.1 Million, Buys | GFP:CA Message Board Posts


Gale Force Petroleum

  GFP:CA website

GFP:CA   /  Message Board  /  Read Message

 

 






Keyword
Subject
Between
and
Rec'd By
Authored By
Minimum Recs
  
Previous Message  Next Message    Post Message    Post a Reply return to message boardtop of board
Msg  18 of 24  at  10/18/2011 1:27:08 PM  by

com.manager


NR - Gale Force Petroleum Obtains Increase in Borrowing Base of Line of Credit to $6.1 Million, Buys Hedges

Gale Force Petroleum Obtains Increase in Borrowing Base of Line of Credit to $6.1 Million, Buys Hedges

DALLAS, TX, Oct. 18, 2011 - Gale Force Petroleum Inc. (TSXV: GFP) ("Gale Force" or the "Company") announced today that it has obtained an increase to $6.1 million in the borrowing base on its $15 million line of credit with Green Bank of Houston, Texas. The line of credit has an interest rate of 5.0% per annum, and is currently drawn to $4.2 million.

The Company also announced that it purchased additional hedges or "floors", consisting of a series of put options, to provide a floor price of $70.00 for 1000 to 2000 barrels per month of crude oil until February, 2013. The cost of the new hedges was US$169,900.

"The increase in the borrowing base of our line of credit reflects sizeable increases in Gale Force's proved producing reserves", said Michael McLellan, Chairman & CEO. "And the hedges help ensure that we are managing risks associated with any borrowing."

The following table summarizes the hedges now held by the Company:
Expiry Previously
Owned
(Qty) New
Hedges
(Qty) Total
Company Hedges
(Qty) Floor Price
31-Oct-11 3000 bbls - 3000bbls $70.00
30-Nov-11 3000 bbls - 3000bbls $70.00
31-Dec-11 2000 bbls 1000 bbls 3000bbls $70.00
31-Jan-12 2000 bbls 1000 bbls 3000bbls $70.00
28-Feb-12 2000 bbls 1000 bbls 3000bbls $70.00
31-Mar-12 2000 bbls 1000 bbls 3000bbls $70.00
30-Apr-12 2000 bbls 2000 bbls 4000bbls $70.00
31-May-12 1000 bbls 2000 bbls 3000bbls $70.00
30-Jun-12 1000 bbls 2000 bbls 3000bbls $70.00
31-Jul-12 1000 bbls 2000 bbls 3000bbls $70.00
31-Aug-12 1000 bbls 2000 bbls 3000bbls $70.00
30-Sep-12 - 2000 bbls 2000 bbls $70.00
31-Oct-12 - 2000 bbls 2000 bbls $70.00
30-Nov-12 - 2000 bbls 2000 bbls $70.00
31-Dec-12 - 2000 bbls 2000 bbls $70.00
31-Jan-13 - 2000 bbls 2000 bbls $70.00
28-Feb-13 - 2000 bbls 2000 bbls $70.00


ABOUT GALE FORCE PETROLEUM INC. − www.GaleForcePetroleum.com

Gale Force Petroleum is a public corporation focused on acquiring and exploiting 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 and Tennessee.

Forward looking statements:

Statements included herein, including those that express management's expectations or estimates of our future performance, constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are based on assumptions and estimates that are subject to various risks and uncertainties, including the risks disclosed under the heading "Risks and Uncertainties" in the Company's periodic filings on SEDAR, for example, in its Management Discussion and Analysis for the year ended June 30, 2010. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statements, except as required under 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."


     e-mail to a friend      printer-friendly     add to library      
|  
Recs: 0  
   Views: 110 []
Previous Message  Next Message    Post Message    Post a Reply return to message boardtop of board




Financial Market Data provided by
.
Loading...