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CALGARY, March 29 /CNW/ - Kallisto Energy Corp. (TSX Venture: KEC) (formerly Arrow Energy Ltd. - AOF) ("Kallisto" or the "Company") today announced that it has closed on the previously announced private placement of up to 10,000,000 common shares at a price of $0.60 per common share (the "Offering"). Due to over-subscription, Kallisto increased the size of the Offering and issued a total of 12,498,266 commons shares for gross proceeds of $7,498,959.80 in closings that took place on March 23, 2010, March 25, 2010 and March 26, 2010. The Company paid finder's fees to each of Acumen Capital Partners ("Acumen"), Canaccord Financial Ltd. ("Canaccord") and CIBC World Markets ("CIBC") in the amount of 6% on subscriptions introduced to the Company. A total of $159,588 in fees was paid: $10,800 to CIBC; $13,302 to Acumen; and $135,486 to Canaccord. The common shares issued in connection with the Offering are subject to a hold period under applicable securities laws of four months, expiring on July 24, 2010, July 26, 2010 or July 27, 2010. Following completion of the Offering, Kallisto has 29,274,203 common shares outstanding.
In addition, the Company announces that as a result of a joint venture with two industry partners and the acquisition of petroleum and natural gas rights at the March 24, 2010 Alberta land sale, the Company now has approximately 3,000 net hectares on an emerging light oil resource play similar to the Pembina area Cardium horizontal well play currently being developed. The Company and its joint venture partners are finalizing a development plan and expect to drill several wells during 2010 to prove up the play.
Finally, the Company's fourth Cardium horizontal oil well in its Pembina, Alberta area, located at 13-33-047-3 W5, has been tied in and was placed on production March 10. As with the Company's reporting of production from the first three Pembina wells, production rates from this well will not be released by the Company until stable rates have been achieved. However, the well is performing up to Company expectations and is similar to the early production history of the first three wells the Company drilled on its 30% interest lands.
Kallisto is a Calgary-based junior resource company engaged in the exploration, development and production of oil and natural gas primarily in Alberta.
This press release contains forward-looking statements which include, but are not limited to: operations plans and outlook, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. Results of the Company may be affected by a variety of variables and risks associated with oil and gas exploration, production and transportation, loss of market, volatility of oil and gas prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, ability to access sufficient debt and equity capital from internal and external sources, ability to replace and expand oil and gas reserves, ability to generate sufficient cash flow from operations to meet its current and future obligations, and risks associated with existing and potential future lawsuits and regulatory actions made against the Company; as a consequence, actual results could differ materially from those anticipated or implied in the forward-looking statements. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement and are made as of the date of this news release. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, event, results or circumstances or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Kallisto Energy Corp.
For further information: For further information: Robyn Lore, President, Telephone: (403) 237-9996, Facsimile: (403) 264-0416