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News Releases
 May 13, 2014
GORDON CREEK ANNOUNCES PENDING NATURAL GAS SALES OPTION AGREEMENT AND PROVIDES FINANCING UPDATE

 Calgary, Alberta May 13, 2014 -- Gordon Creek Energy Inc. (TSX-V: GDN) (the "Company") announced that it has entered into a binding agreement with a Malaysian natural gas distribution company, whereby the Malaysian company has agreed to pay US$10 million to the Company in exchange for the ongoing right to purchase up to 100% of the Company's future production from its Gordon Creek natural gas field in Carbon County, Utah (the "Transaction"). The Malaysian company will pay the Company the prevailing Henry Hub prices for gas at the time of purchase, less a negotiated discount in the range of 10%. The Malaysian company was not able to meet the original closing date specified in the agreement, and discussions are ongoing as to a potential closing schedule. Further details of the transaction and a description of the buyer will be provided once the closing has been confirmed and a time frame for closing has been determined.

The Company also announced that it completed the extension of the due date of its 15% Gas Linked Debentures (TSX-V: GDN.DB) until October 31, 2014. Fifty percent (50%) of the quarterly interest payments on the Gas Linked Debentures are payable in shares of the Company, based on a discount from the weighted average trading price of the Company's shares during quarter. For the quarter ended January 31, 2014 the Company issued 1,848,300 shares at a deemed price of $0.102 per share representing 50% of the interest due, bringing the Company's issued and outstanding capital to 10,022,848 common shares. Due to the delays in completing the Malaysian gas purchase option, the Company has deferred the payment of the cash portion of the quarterly payment pending completion of that transaction or an alternative financing transaction.

The Company is presently in discussions with a number of parties concerning potential financial transactions. Operations at Gordon Creek have been curtailed and will recommence upon completion of a financing. The next stage of development will be to install high volume water pumps on some of the most recently drilled Gordon Creek wells and the recompletion and resumption of production from a number of additional standing wells.

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

For more information, contact:

Rupert Evans,
VP Geosciences
734 7th Avenue S.W.
Suite 1350, Calgary Alberta T2P 3P8
Tel: 403-453-1608
Email: revans@gordoncreekenergy.com

John Bell,
CFO
734 7th Avenue S.W.
Suite 1350, Calgary Alberta T2P 3P8
Tel: 403-453-1608
Email: jbell@gordoncreekenergy.com
 
 

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