CALGARY, March 8 /CNW/ - Kallisto Energy Corp. (TSX Venture: KEC) (formerly Arrow Energy Ltd. - AOF) ("Kallisto" or the "Company") is pleased to announce that Glenn Gradeen, P. Eng. has been appointed a director of the Company. Mr. Gradeen is currently Chief Operating Officer of Cirrus Energy Corporation and previous positions have included President and CEO of Berkana Energy Corp. and President and Chief Operating Officer at Ocelot Energy Inc. Mr. Gradeen is also a director of Caltex Energy Inc., a private Canadian E&P company.
The Company also announces that it has completed the acquisition of an additional working interest in two of its three producing Pembina, Alberta Cardium horizontal oil wells. These interests were acquired pursuant to options exercised under the terms of farmout agreements whereby the Company farmed out a portion of its interest in the two wells. The acquisitions completed are as follows:
1. An 8.333% working interest in the 6-4-48-3W5 well for cash
consideration of $390,296 (subject to certain purchase price
adjustments), effective as of February 1, 2010. Following the
acquisition, Kallisto has a 25% working interest in this well; and
2. A 3.0% working interest in the 6-33-47-3 W5 well for cash
consideration of $265,000, effective as of December 1, 2009.
Following the acquisition, Kallisto has a 16.667% working interest in
The Company has additional options to increase its working interest in 6-33-47-3 W5 and 16-34-47-3 W5 to 25% on terms similar to those of the 6-4-48-3 W5 well. Management expects to exercise those options within the next few weeks.
In addition, completion operations on the fourth horizontal well of its Pembina drilling program located at 13-33-47-3 W5, which included 14 multi-stage fracture stimulations, have been successfully concluded. Flow-back operations to recover completion fluid have commenced and it is expected that the well will be placed on production within the next few weeks. Kallisto has a 30% working interest in this well.
The Company is reviewing several financing alternatives to fund a portion of its 2010 acquisition and drilling programs.
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 oil and gas production and transportation, loss of market, volatility of oil and gas prices, imprecision of reserve estimates, environmental risks, competition from other producers, ability to access sufficient debt and equity capital from internal and external sources, and ability to generate sufficient cash flow from operations to meet its current and future. 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.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE Kallisto Energy Corp.
For further information: For further information: Robyn Lore, President and CEO, Telephone: (403) 237-9996, Facsimile: (403) 264-0416