CALGARY, Feb. 4 /CNW/ - Kallisto Energy Corp. (TSX Venture: KEC) (formerly Arrow Energy Ltd. - AOF) ("Kallisto" or the "Company") is pleased to announce that drilling operations have commenced on the fourth well of its planned twelve well Pembina, Alberta drilling program. The well, located at 14-33-47-3 W5, is expected to be drilled to a depth of 1,290 meters TVD with a 1,540 meter lateral in the Cardium formation. As many as 14 multistage fracture stimulations are planned for the well, which the Company has a 30% working interest in.
The Company has made an offer to purchase the minority interests in its subsidiary company, Dublin Resources Inc., and has purchased 717,141 shares of Dublin for cash consideration of $72,216. The Company currently owns 86.1% of the shares of Dublin and anticipates that it will acquire additional shares in the coming weeks. Should the Company acquire more than 90% of the shares of Dublin, it will seek to acquire the remaining shares by way of compulsory acquisition, an amalgamation, arrangement or other transaction.
Kallisto also announces that on February 3, 2010, the Board of Directors granted 600,000 stock options to directors, officers and employees. The stock options have an exercise price of $0.50 per share, vest over a two-year period and expire five years from the date of issue. The Company currently has 1,456,500 stock options issued.
Kallisto is a Calgary-based junior resource company engaged in the exploration, development and production of oil and natural gas 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 the willingness of Dublin shareholders to sell their shares, 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.
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SOURCE Kallisto Energy Corp.
For further information: For further information: Robyn Lore, President and CEO, Telephone: (403) 237-9996, Facsimile: (403) 264-0416