Gale Force Petroleum Inc. (TSXV: GFP) (OTCQX: GFPMF) has signed a loan amendment agreement with its senior lender, Green Bank, and has entered into additional swap contracts.
The company's bank line of credit now has a maturity date of January 1, 2015, remaining an interest-only loan at least until a borrowing-base redetermination to be carried out as of April 1, 2014, at which time, should there be no change in the company's assessed reserves, borrowing base reductions of $75,000 will be required each month. The line of credit has an interest rate of 5.0% and is currently drawn to $5.5 million. Currently, interest payments are approximately $23,000 per month.
Gale Force also announced that, to hedge against fluctuating oil prices, lock in profitable pricing on some of its oil production, and meet the requirements of its bank loan facility, it has entered into additional swap contracts.
Gale Force Petroleum is a public corporation focused on acquiring and exploiting underdeveloped oil and gas reserves in mature basins. The company owns producing oil and gas properties in Texas, Tennessee, and West Virginia.