Kallisto announces production update on Pembina wells

CALGARY , Dec. 15 /CNW/ - Kallisto Energy Corp. (TSX Venture: KEC) (formerly Arrow Energy Ltd. - AOF) ("Kallisto" or the "Company") is pleased to provide an update of production results from its Pembina, Alberta drilling program. The three wells are averaging a combined 600 BOE per day (88 BOE per day net to Kallisto). Subject to regulatory approval, the Company expects that up to nine additional wells may be drilled on its Pembina lands with the next well expected to be drilled early in the first quarter of 2010.

Management anticipates that production from the Pembina wells will perform similar to industry and analyst expectations for wells drilled in the Cardium formation and completed using multi-stage fracture stimulations, with initial production rates of between 200 and 300 barrels per day, decreasing by more than 50% during the first six months. It is expected that each well will produce between 150,000 and 180,000 barrels of oil over its economic life.

Kallisto has a 16.6667% working interest in the first two wells and a 13.6667% working interest in the third well. The Company can increase its working interest to 25% in the wells through the exercise of purchase options. The funds required to exercise the purchase options are largely expected to be generated by Kallisto's working interest revenues from the Pembina wells.

Kallisto is a Calgary-based junior resource company engaged in the exploration, development and production of natural gas and oil primarily 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 exploration, production and transportation, such as 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.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

For further information: Robyn Lore, President and CEO, Telephone: [phone], Facsimile: [phone]