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"The Company now has an attractive cash position, zero debt, minimal overhead, valuable non-operated working interests, and is an attractive counterpart for a strategic transaction."
On my watch list.
Gale Force may come out of this bankrupsy procedure but dilution will be enormous. Under the current set up, the shares would be valued under .005 as new equity financing and debt restructuring would largely be met by issuing shares.
Following all this, assuming it is approved, GFP would then go into a 50-1 reverse split, bringing the shares to about .25, if it holds, and the new warrants exercisable at $2.50 (not .25 as per the PR, imo.)
Why would there be investors ready to pay .01 now and why is there no one to sell at that price? I can't explain; hoping somebody does,
g.p.
Bad news. Company update assessment: bankrupsy.
At best, mighty close! See today's update:
"Gale Force Petroleum announces status update on progress of restructuring, refinancing
MONTREAL, Jun 3, 2009 (Canada NewsWire via COMTEX) -- (Canada NewsWire)
Gale Force Petroleum Inc. (TSX Venture: GFP, the "Corporation") today announced a status update to shareholders regarding the progress of its debt restructuring and equity re-financing efforts.
The Corporation remains under bankruptcy protection as part of the Proposal to Creditors filed on February 4, 2009, under the Bankruptcy and Insolvency Act (Canada). Since the Proposal to Creditors was approved by the creditors and sanctioned by the Superior Court of Quebec, the Trustee is now soliciting unsecured creditors to provide their Proof of Claim until June 12, 2009, after which the unsecured creditors will be issued up to 45 million new common shares of the Corporation as a final dividend to settle their debts. Barring any unforeseen complications, this can be expected to occur prior to the end of June, 2009.
The Corporation is currently insolvent, but has sufficient resources to continue operations for a limited period of time while under the protection of the Proposal to Creditors. The Corporation is focusing its efforts on obtaining new equity financing, which is needed for working capital and to maintain the value of its assets.
Following the completion of the Proposal to Creditors, the Corporation will still hold a $2 million secured loan. This secured loan remains a major barrier for the Corporation in its efforts to obtain any new equity or other alternative financing. Therefore, the Corporation is currently negotiating with its secured lender, Primatlantis Capital L.P., to restructure the loan and convert a portion of the loan into equity, which would be subject to concurrently raising sufficient additional equity financing to provide a viable future for the Corporation.
The debt conversion and new equity financing transactions would be highly dilutive to all existing shareholders, including the new shareholders who are receiving payment in shares as part of the Proposal to Creditors. If the Corporation is able to convert part of its secured loan and obtain sufficient new equity financing, it would be expected to issue approximately 400 million new shares as part of these transactions. However, given the current financial situation of the Corporation and capital market conditions, such transactions appear to be the Corporation's sole viable alternative.
If the Corporation is unable to negotiate a conversion of its secured loan into equity and obtain new equity financing, it will not be able to continue as a going concern and will possibly be required to file for bankruptcy in the coming months. Further details will be announced in such circumstances.
ABOUT GALE FORCE PETROLEUM INC.(TM) - www.GaleForcePetroleum.com
Gale Force Petroleum is a public corporation focused on acquiring and exploiting unconventional and conventional gas resources in mature basins, building shareholder value through growth. It owns producing natural gas properties in Alberta, Canada and in Kentucky, USA.
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 - especially but not limited to any geological or reservoir information not supported by a NI 51-101 report - are based on assumptions and estimates that are subject to various risks and uncertainties including but not limited to geological risk, engineering risks, market risk and the risks disclosed under the heading "Business Risks" in the Corporation's periodic filings with Canadian securities regulators, including most recently in its Management Discussion and Analysis for the annual exercise ended June 30, 2008 available on SEDAR. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Corporation does not assume the obligation to update any forward-looking statements.
"The TSX Venture Exchange has not reviewed this release and therefore
does not accept responsibility for its adequacy or accuracy."
SOURCE: Gale Force Petroleum Inc.
Michael McLellan, Chairman and CEO, (514) 333-9292
Copyright (C) 2009 CNW Group. All rights reserved."
Any wonder that volume at .01. IMO, time to take the loss and move on.
g.p.
I know the company is working to reduce cost on their kentucky property with a new technology. This could be significant for GFP- they have 350M worth of gas on the property. Right now GFP has 12 producing natural gas wells. Financing is coming soon as mentioned in the last press release and rumors are that they will buy an oil property producing 50 barrels/day with 60% ROI on it. Don't ask yourself why the stock is moving : ). With oil the company will be more diversified.
Just my opinion but inflation will pick up shortly and oil and natural gas will go back up. The stock will follow. This is a good time to pick up cheap shares.
sorry, wrong board. GFP back at .01 on 99k
163K at 3:30, last at .16.
What's going on? .15 two weeks ago, back to .075 last week, and now....
g.p.
183,000 sahres @ the bid. The smart ones are buying. Natural gas is on the rise. @ 5$/MCF we are profitable we should be there soon.
who wants to do a trade ??? buy now @ 0,01$ you will sell much higher : )
GALE FORCE PETROLEUM CREDITORS ACCEPT PROPOSAL
Montreal, February 25, 2009 – Gale Force Petroleum Inc. (TSX Venture: GFP, the “Corporation”) today announced that the unsecured creditors overwhelmingly voted to accept the Proposal to Creditors in support of the Corporation’s restructuring plan at a Meeting of Creditors held yesterday. The Proposal to Creditors was filed on February 4, 2009 by the Corporation under the Bankruptcy and Insolvency Act (Canada).
There was as significant turnout in voting, with votes from 56 unsecured creditors counted at the Meeting of Creditors. With respect to Category I Unsecured Creditors, 96% in number and 98% in value voted in favour of the Proposal. With respect to Category II Unsecured Creditors, 100% in number and in value voted in favour of the Proposal.
“The results of the vote are very encouraging”, said Michael McLellan, President and CEO. “We very much appreciate the support of the creditors and investors in support of our restructuring efforts”.
According to the terms of the Proposal to Creditors, the Corporation will issue up to 47,000,000 common shares to settle all unsecured claims, upon presentation of a proof of claim by each of the unsecured creditors. The Final Approval of the Proposal is subject to sanction by the Court. The shares issued as payment of debts under the Proposal to Creditors are subject to prior applicable regulatory approval.
The Corporation also announced today that Ronald Bourgeois has stepped down from the board of directors, effective on today’s date. Mr. Bourgeois also stepped down from the position of Chief Operations Officer.
Jocelyn Boucher, Chairman of the Board, said, “On behalf of the board of directors and the Corporation, I would like to thank Ron Bourgeois for his service, in particular for his help supporting the Corporation carry out its restructuring plan in a highly volatile marketplace”.
As part of its restructuring plan, the Corporation is now seeking new financing and further business development opportunities. Further details will be announced when available.
Trading to resume at 8:15 PT.
g.p.
The plan will probably be adopted. The stock will most probably jump to 0,05$-0,06$. We will know wednesday
Creditors did not want shares because of market conditions. Unfortunately it is not looking good for us. The big problem is that natural gas prices are way down
GALE FORCE PETROLEUM TO FILE PROPOSAL TO CREDITORS
Montreal, February 3, 2009 – The Board of Directors of Gale Force Petroleum Inc. (TSX Venture: GFP, the “Corporation”) today announced that it has performed an in-depth review of the Corporation’s business activities. The Board of Directors has concluded that in order to continue as a going concern, a restructuring of the Corporation’s debts and concurrent refinancing is now necessary. Therefore, as a first step, the Corporation will file a Proposal to Creditors under the Bankruptcy and Insolvency Act (Canada) (the “Proposal”), effective on today’s date.
Michael McLellan, President and CEO, described the situation as follows:
“When your board of directors initially adopted the restructuring plan in September 2007, there was a belief that management could obtain sufficient new funding and create enough value to overcome an unhealthy balance sheet, ultimately growing to create value for shareholders.
We began the restructuring plan with liabilities that exceeded $6 million, assets worth less than $1 million and minimal revenues. We needed to raise sufficient equity to build new assets while simultaneously paying down or reducing our debts. We have faithfully executed this strategy, raising equity financing totalling $4.9 million, reducing the total debts of the Corporation to $3.7 million and investing shareholder’s money in new higher-quality natural gas properties in Alberta and Kentucky.
In the last several months, oil and natural gas prices have diminished, credit has become unavailable and general economic conditions have deteriorated such that the Corporation can no longer rely on raising financing in equity markets that would be needed to complete the restructuring.
It is apparent that unless there is a major reduction and restructuring of the Corporation’s debts, the Corporation will not be able to meet its short-term obligations, nor will it be possible for the Corporation to continue as a going concern.
The Corporation is convinced that it possesses valuable assets. Notably, it believes that its Kentucky Shale Gas Property has the potential to provide extended growth in both revenues and net asset value, if financing could be made available to continue the development of the property and if natural gas prices recover.
The Corporation’s recent workover and completion program proved that there is consistent gas potential across the Kentucky Property and confirmed that there is low-risk, low-cost drilling for the Devonian Shale target, with the potential for excellent economic returns to investment. The recent Farmout Agreement concluded by the Corporation on January 13, 2009, will ensure the continued development of the Kentucky Property in the near term.
However, in the event of a bankruptcy today, even if there is an orderly sale of the Corporation’s assets, in current market conditions there would be no value remaining for the Corporation’s shareholders or for its unsecured creditors.
As a result, the Corporation has determined that the best option to realize a possible future for the Corporation, its shareholders and its creditors, is to file a Proposal to Creditors under the Bankruptcy and insolvency Act (Canada).”
The Proposal will address all classes of creditors and observe standard practice, regulatory and financial requirements.
For the Proposal to be “Approved”, it must receive approval in each class of creditor by at least 66.67% in dollars and 50.00% plus one in the number of eligible creditors who vote. It also must be accepted by the Court.
The Proposal offers payment of all debts owing to the Corporation’s unsecured creditors and potential claimants totalling approximately $2.5 million by the issuance of common shares of the Corporation. Category I unsecured creditors will be offered full payment of their claims at $0.05 per share, or, twenty (20) common shares of the Corporation per each dollar of debt. Category II unsecured creditors will be offered full payment of their claims at $0.067 per share, or, fifteen (15) common shares of the Corporation per each dollar of debt. If the Proposal is Approved, the Corporation will issue approximately 47,000,000 common shares to settle all claims. There are currently 19,468,284 common shares of the Corporation issued and outstanding.
The Corporation has also reached an agreement with its lender and sole secured creditor, Primatlantis Capital, which is subject to the Approval of the Proposal. According to the terms of this agreement, $133,000 in interest and fees owing to Primatlantis will be paid as a Category I unsecured creditor under the Proposal. Additionally, there will be several amendments to the loan agreement, including: the Maturity Date will be extended until December 31, 2010; the loan will not earn any interest nor will there be any fees owing on the loan until after December 31, 2009; after December 31, 2009 the loan will earn interest at 12% per annum; after December 31, 2009, the loan will be convertible in full or in part into securities of the Corporation, at the election of the lender, upon terms and conditions similar to those offered to purchasers of securities of the Corporation participating in any private placement of the Corporation following the Proposal, and; the loan is repayable in full or in part at the election of the Corporation at any time without penalty. Because there will be no scheduled interest payments or capital repayments on the loan until after December 31, 2009, the lender will not put the Corporation into default until at least after December 31, 2009, which will provide the Corporation with time to attempt to obtain funding to reimburse the loan and/or pursue other growth strategies.
The Proposal to Creditors was designed by the Corporation to be fair and equitable to all creditors and stakeholders, with the goal of providing the best chance at realizing value for the creditors, claimants and shareholders under the circumstances. For the filing of the Proposal, the Corporation has contracted Raymond Chabot Inc. to act as Trustee.
The shares issued as payment of debts under the Proposal as well as the amended convertible loan agreement are subject to prior applicable regulatory approval.
The Board of Directors of the Corporation is composed of five members, being Jocelyn Boucher (Chairman), Ron Bourgeois, Mazen Haddad, Antoinette Lizzi and Michael McLellan. As part of the restructuring, the directors had decided against drawing any salary or board fees since July 1, 2008, and will not draw any fees until at least after the restructuring of the Corporation is complete and new financing is obtained. Also, all current directors and officers of the Corporation have forfeited their options to purchase shares of the Corporation.
If the Proposal is Approved, the Corporation will require a minimum amount of equity financing for the restructuring to be successful and for the Corporation to continue as a going concern. The Corporation is therefore examining financing opportunities. Further details will be announced when available.
if we see a 2nd day like yesterday this is at .09 and .14
It will go back down 110K @ the ask. We need good news to get it up and stay up.
what a beauty, 100k at 05 up!!!!!
looks like could be the winner of the week
still needs more support and this is a gas deal so as there is some light this will make up huge ground, i will buy as much as i can under 07
starting to get more action, very strategic
support @ 0.02-0.025. Market cap 500,000$. 1M$ in investment by the farmee. 1M$ already invested in kentucky by GFP. Producing wells. Good news should bring us up to 0,1$+
gfp.v is looking good to start its move
We are buying !!!
its starting to get some attn, i think we should get about .15 by mid feb
It's time to buy - it is undervalued. Great prospects with top management.
well done I am doing the same
well i got lucky picked up some extra at .03
yes some holders probably needed to let go,
Only the beginning...
some buying today or tomorrow should bring it up to 0,05$+
i think so, its all just about to kick off
We should see good volume next week.
lets get it moving..
We should be moving to 0.045$ today
Actually Talisso,
I expect more like a X8 from the curent bid price. Then the company will grow from there. This is a longterm hold
The bid is growing good sign
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