TORONTO, Sept. 18, 2015 /CNW/ - Montana Exploration Corp.
("Montana") (TSXV:MTZ) and Gale Force Petroleum Inc.
("Gale Force") (TSXV:GFP) (OTCQX:GFPMF) are pleased to
announce that they have completed the plan of arrangement (the
"Arrangement"), pursuant to which Montana has acquired all
of the issued and outstanding shares of Gale Force in exchange for
common shares of Montana (the "Common Shares").
Simultaneously, CA$9,304,364 of Montana's secured debts and
CA$374,141 of Gale Force's short-term debts (including directors'
fees, trade account payables and severance pay) were converted into
Common Shares.
In total, 42,751,429 Common Shares were issued to the Gale Force
security holders, 93,043,640 Common Shares were issued to the
converting Montana secured debtholders and 3,741,412 Common Shares
were issued to the converting Gale Force short-term debtholders.
Montana now has 242,287,751 total issued and outstanding
Common Shares.
"The Arrangement with Gale Force and the debt conversion
transactions, together, significantly improves Montana's balance
sheet," said Charles Selby, Chairman
and Chief Executive Officer of Montana. "Furthermore, the
cash and other producing oil and gas assets acquired from Gale
Force provide a broader base for Montana as we seek additional
financing to continue conventional natural gas and oil exploration
of Montana's extensive prospects in the state of
Montana."
Montana also announced that it has nominated Allan Bezanson, formerly the Chairman of Gale
Force, to its Board of Directors. Michael McLellan, formerly Gale Force's Chief
Executive Officer, has been retained under a 6 month contract in
the position of Vice-President of Corporate Finance and Interim
Chief Financial Officer.
In connection with the Arrangement, 7,300,000 stock options of
Gale Force were cancelled and replaced with 3,394,500 stock options
of Montana, each stock option having an exercise price of
$0.13 and an expiry date of
September 16, 2016.
Former holders of common shares and series III preferred shares
of Gale Force can obtain Common Shares by submitting the applicable
letters of transmittal and the appropriate documents prescribed
thereby to the depositary for the Arrangement, Computershare
Investor Services Inc. The forms of the letters of transmittal are
available under Gale Force's profile on the SEDAR website
(www.sedar.com). Former holders of Gale Force options will
receive replacement options directly from Montana.
ABOUT MONTANA EXPLORATION CORP.
MTZ is an oil and gas
exploration and production company focusing on the Shaunavon oil and Eagle gas opportunities
underlying its extensive land holdings in the state of Montana. In
the United States, the company
operates through its wholly-owned subsidiary, Montana Land & Exploration, Inc. MTZ's
common shares are listed on the TSX Venture Exchange under the
trading symbol "MTZ". Additional information regarding MTZ is
available under MTZ's profile at www.SEDAR.com or at
www.MontanaExplorationCorp.com.
Forward Looking Statements
This press release
contains statements that constitute "forward-looking information"
or "forward-looking statements" (collectively "forward-looking
information") within the meaning of applicable securities
legislation. Forward-looking information is often, but not always,
identified by the use of words such as "anticipate", believe",
"expect", "plan", "intend", "forecast", "target", "project",
"guidance", "may", "will", "should" "could", "estimate", "predict"
or similar words suggesting future outcomes or language suggesting
an outlook.
Forward-looking statements and information contained in this
press release are based on our current beliefs as well as
assumptions made by, and information currently available to, us.
Although we consider these assumptions to be reasonable based on
information currently available to us, they may prove to be
incorrect.
By their very nature, the forward-looking statements included in
this press release involve inherent risks and uncertainties, both
general and specific, and risks that predictions, forecasts,
projections and other forward-looking statements will not be
achieved. We caution readers not to place undue reliance on these
statements as a number of important factors could cause the actual
results to differ materially from the beliefs, plans, objectives,
expectations and anticipations, estimates and intentions expressed
in such forward-looking statements. When relying on our
forward-looking statements to make decisions with respect to MTZ
and Gale Force, investors and others should carefully consider
other uncertainties and potential events. Furthermore, the
forward-looking statements contained in this press release are made
as of the date of this document and we do not undertake any
obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by applicable law.
The forward-looking statements contained in this press release are
expressly qualified by this cautionary statement.
Neither the 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.