Gordon Creek Energy Inc.

Gordon Creek Energy Inc.

October 31, 2014 19:38 ET

Gordon Creek Energy Inc.: Corporate Update

CALGARY, ALBERTA--(Marketwired - Oct. 31, 2014) - Gordon Creek Energy Inc. (TSX VENTURE:GDN) (the "Company") today provided an update regarding its ongoing efforts to secure a long term financing solution for the development of the Gordon Creek natural gas field. The Company is continuing to work with Houston Merchant Advisory Partners ("HMEP") as a strategic advisor to assist with the evaluation and sourcing of various financing alternatives as announced August 22, 2014. Follow up discussions are ongoing with a number of interested parties introduced by HMEP to date, and marketing efforts are continuing.

The Company is also at an advanced stage of negotiations to secure a $2.5 to $3.0 million bridge loan facility that will be focused on re-working and re-activating up to 14 previously drilled development wells in order to increase cash flows and reserves. Further details of the bridge loan facility will be provided upon the completion of negotiations.

The Company will not be redeeming the $10 million 15% Gas Linked Debenture issue, currently due October 31, 2014 until a re-capitalization financing has been completed. Until redemption occurs, the Company intends to continue the present policy of paying the 50% quarterly interest payment in common shares of the Company, and suspending and accruing the 50% cash portion of the quarterly interest payments. The next quarterly share interest payment will be made mid-November.

Gordon Creek Energy Inc. is an oil and gas exploration and production Company with interests in the US Rockies.

Website: www.gordoncreekenergy.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward-Looking Information

Information in this news release, including information respecting the Company's financing and capitalization plans, constitute forward-looking information. Statements containing forward-looking information express, as at the date of this news release, the Company's plans, expectations, or beliefs as to future events or results are believed to be reasonable based on the information currently available to the Company. The Company does not undertake to update any such forward-looking statements unless required by applicable securities legislation. Statements including forward-looking information involve known and unknown risks, uncertainties and other factors which may cause the actual results of the Company and its operations to be materially different from estimated costs or results expressed or implied by such forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

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