CALGARY, Jan. 12 /CNW/ - Kallisto Energy Corp. (TSX Venture: KEC) ("Kallisto" or the "Company") announces that it spudded its third Crossfield, Alberta Viking
horizontal oil well on January 7, 2011. The well, located at
15-07-028-01 W5, is operated by Kallisto and is expected to be
completed with up to 15 multi-stage fracture stimulations utilizing GASFRAC Energy Services Inc's. proprietary Liquefied Petroleum Gas
Fracturing Process. This is the same completion process that has been
successfully used in other Viking horizontal oil wells in the
Crossfield area. Kallisto has a 65% working interest in the 15-7 well.
The second well drilled at Crossfield, 08-20-028-01 W5, has been drilled
and is awaiting completion. Discussions are ongoing with the operator
to finalize a completion program. Management believes that the fracture
stimulation on its first well, 01-29-028-01 W5, was ineffective,
possibly due to low fracture conductivity and induced formation damage.
Kallisto has a 50% working interest in both the 1-29 and 8-20 wells.
The Company's sixth Pembina, Alberta Cardium horizontal oil well,
12-33-047-03 W5, produced an average of approximately 176 boe per day
during its first 30 days of production, including 3 days where the well
was producing only part of the day. Unlike earlier wells, production
from this well has been purposely limited by pump capacity. On January
7, 2011, after the initial 30 day production period, the well produced
approximately 250 boe per day, including 206 bbls of oil. Kallisto's
working interest in the Pembina wells is 30%. Kallisto has been
notified by its joint venture partner that they expect to spud the
seventh horizontal well in the program, 04-33-047-03 W5, within the
next few days.
Completion and testing operations at the Company's liquids-rich
Ellerslie gas well at 10-34-027-01 W5 are expected to commence within
the next two weeks. Kallisto has a 50% working interest in this well
which has approximately twelve meters of potential 12% porosity net
Pipeline construction to tie-in the Company's multi-zone Cretaceous well
at Ferrier, Alberta is expected to commence before the end of January,
2011. The Company has a 45% interest in the well, which is expected to
produce liquids-rich gas.
Kallisto's current production is approximately 300 boe per day,
including approximately 145 bbls of oil. In addition, the Company has
50 boe per day of shut-in gas production.
The Company also announces that the Board of Directors has approved cash
and stock bonuses to officers of the Company in recognition of their
performance in 2010. The Company has received approval from the TSX
Venture Exchange to issue 299,000 common shares as part of the bonus
program at a deemed price of $0.72, being the last closing price of the
Company's shares prior to the Board approving the bonuses. Following
this transaction, the Company will have 54,960,978 common shares issued
Kallisto is a Calgary-based junior resource company engaged in the
exploration, development and production of oil and natural gas,
primarily in Alberta.
Forward Looking Information
The reader is advised that some of the information herein may constitute
forward looking statements within the meaning assigned by National
Instrument 51-102 and other relevant securities legislation. In
particular these include, but are not limited to, statements with
respect to current oil and gas production volumes, potential results
from drilling and completion operations and encountering commercial
quantities of oil, natural gas and natural gas liquids. These
statements are based on management's current expectations. The reader
is cautioned that assumptions used in the preparation of such
information, although considered reasonable by Kallisto 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.
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
Facsimile: (403) 264-0416