CALGARY, July 26 /CNW/ - Kallisto Energy Corp. (TSX Venture: KEC) ("Kallisto" or the "Company") is pleased to announce that it has acquired interests in two Alberta properties through the closing of several transactions.
The Company has acquired a 45% working interest in approximately six and one-half sections in its Crossfield, Alberta core area from two vendors. These lands are on the same trend as lands previously acquired by the Company and which it is believed to be prospective for development of Viking oil wells utilizing horizontal drilling and multi-stage fracture stimulation completions. In addition, the Company has acquired, through participation in public land sales, a 100% working interest in one and one-half sections at Crossfield which is also prospective for Viking oil development.
The Company has also acquired a 45% interest in two sections in the Ferrier, Alberta area. Included in the acquisition is a multi-zone, Cretaceous, liquids-rich gas well which the Company expects to commence to tie-in in the third quarter of 2010. Kallisto has granted the vendor a re-purchase option on this property until March 31, 2011.
The aggregate cash consideration paid in the above transactions totaled $2.565 million.
Following these acquisitions at Crossfield, Alberta, Kallisto owns approximately 23.5 net sections that are prospective for Viking oil development. The Company expects to participate in the drilling of up to five horizontal oil wells on these lands in 2010, the first of which is expected to spud in the first week of August.
Kallisto also announces that its fifth Pembina, Alberta Cardium oil well has been placed on production. Production from the well, located at 04-34-047-03W5, is in line with management expectations and will be reported once rates have stabilized. The Company has been very pleased with the results of the Pembina development program as the average gross production rates for the first 30 days from the first four wells was approximately 250 boe per day. These wells were drilled horizontally in the Cardium formation and completed with multi-stage fracture stimulations at an average gross cost of $2.485 million. Kallisto has a 30% working interest in its Pembina wells.
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 drilling, production and transportation, loss of market, volatility of oil and gas prices, imprecision of reserve estimates, environmental risks, competition from other producers. 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