Cairn Merchant Partners Advises Gale Force Petroleum
Gale Force Petroleum said it has engaged Cairn Merchant Partners as its financial advisor to assist the company in evaluating and considering strategic alternatives with a view to enhancing shareholder value. Strategic alternatives to be considered by the company include, but are not limited to, the sale of the company or a business combination.
“Given Gale Force’s attractive reserves base, cash-flow positive operations, potential for growth and public listing, our board of directors believes that the company can attain greater value for shareholders through a strategic transaction,” said Michael McLellan, co-chairman and CEO.
“The rationale for a strategic transaction was most recently discussed in detail in the company’s Management Discussion & Analysis for the quarter ended March 31, 2013, but in short, we believe that a strategic transaction will unlock latent value currently going unrecognized by the market and, depending upon the nature of the transaction, could be accretive to shareholders through the realization of economies of scale and operational synergies,” McLellan added.
The company cautions, however, that there can be no assurance that its ongoing strategic review process will result in any transaction, or, if a transaction is realized, as to its terms or timing.
Gale Force Petroleum is a public corporation focused on acquiring and exploiting underdeveloped 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, Tennessee and West Virginia.
Cairn Merchant Partners is a recently formed independent M&A advisory and merchant banking firm offering a full range of advisory services to public and private companies.