The Colgate Properties are located within five miles of the company’s existing properties in East Texas and consist of mainly 100% working interests in oil and gas properties that are currently producing, in the aggregate, 105 barrels per day.
Gale Force Petroleum chairman and CEO Michael McLellan said that this acquisition will significantly increase the company’s overall production, revenues and cash generation.
"Due to its proximity and size, the acquisition will build scale and integrate well into our existing operations in East Texas," McLellan said.
The purchase of the working interests in the Colgate Properties is subject to due diligence and financing, and it is a condition of the agreement that the purchase be concluded prior to the end of 2010.
