CALGARY, Feb. 27, 2012 /CNW/ - Kallisto Energy Corp. (TSX Venture: KEC)
("Kallisto" or the "Company") is pleased to announce that its ninth
successful Pembina, Alberta horizontal Cardium oil well has been
drilled, completed, flow-tested and is awaiting tie-in of a gas
conservation pipeline to allow the well to be placed on production. The
well, located at 12-34-047-03 W5M, commenced drilling on February 1,
2012. Completion operations, which included an 18 stage energized water
fracture stimulation, were completed on February 16, 2012. The cost of
drilling and completing the well is expected to be approximately
$2,373,000 million, ($712,000 net to the Company).
In addition, the eighth Pembina oil well, located at 5-34-047-03 W5M,
was placed on production November 25, 2011. Production for the first 30
days from the 5-34 well averaged approximately 226 boe per day (68 net
to the Company), including approximately 198 bbls per day of oil (59
net to the Company).
Kallisto has a 30% working interest in all of its Pembina oil wells.
Crossfield Drilling License Application
On September 2, 2011 the Company submitted an application to the Energy
Resources Conservation Board ("ERCB") to drill a well at 11-26-027-01
W5M to test the Lower Manville formation. Kallisto previously confirmed
commercial productivity of this formation with the drilling of a well
located at 10-34-027-1 W5M. CrossAlta Gas Storage & Services Ltd. filed
an objection to Kallisto's license application. The ERCB held a public
hearing into the drilling application commencing on January 10, 2012
and announced its decision to grant Kallisto the drilling license on
February 24, 2012. The drilling license was issued the same day.
Conditions of the license restrict fracture completions to 40 tonnes
and require certain pressure measurements. The Company expects to spud
the 11-26 well in early March, subject to weather conditions and rig
availability. Should the 11-26 well be successful, management
anticipates completing an expanded 3D seismic program on its lands to
identify additional drilling locations. Kallisto holds more than 5,000
net acres of land in the Crossfield area it believes to be prospective
for this geological target.
Kallisto is a Calgary-based junior resource company engaged in the
exploration, development and production of oil and natural gas in
Forward Looking Information
The reader is advised that some of the information contained herein may
constitute forward looking statements within the meaning assigned by
National Instrument 51-102 and other relevant securities legislation. It includes, but is not limited to, statements with respect to well
production and performance, and timing of well development and
operations including the anticipated dates for the drilling of wells.
Forward-looking information is frequently characterized by words such
as "plan", "expect", "project", "intend", "believe", "anticipate",
"estimate", "scheduled", "potential", or other similar words, or
statements that certain events or conditions "may", "should" or "could"
occur. Forward-looking information is based on the Company's
expectations regarding its future growth, results of operations,
production, future capital and other expenditures (including the
amount, nature and sources of funding thereof), competitive advantages,
plans for and results of drilling activity, environmental matters,
business prospects and opportunities. Such forward-looking information
reflects management's current beliefs and assumptions and is based on
information currently available to it. The reader is cautioned that
assumptions used in the preparation of such information, although
considered reasonable by the Company at the time of preparation, may
prove to be incorrect and readers are cautioned not to place undue
reliance on forward-looking information, which speaks only as of the
date hereof. The Company does not undertake any obligation to release
publicly any revisions to forward-looking information contained herein
to reflect events or circumstances that occur after the date hereof or
to reflect the occurrence of unanticipated events, except as may be
required under applicable securities laws.
Forward-looking information involves significant known and unknown risks
and uncertainties. A number of factors could cause actual results to
differ materially from the results discussed in the forward-looking
information including risks associated with the impact of general
economic conditions, industry conditions, governmental regulation,
volatility of commodity prices, currency fluctuations, imprecision of
reserve and resource estimates, environmental risks, competition from
other industry participants, the lack of availability of qualified
personnel or management, stock market volatility and the Corporation's
ability to access sufficient capital from internal and external
sources. Additional risks and uncertainties are described in the
Company's Short Form Prospectus dated February 7, 2011 and Annual
Information Form which are filed on SEDAR at www.sedar.com.
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:
President and Chief Executive Officer
Telephone: (403) 237-9996