CALGARY, April 27, 2012 /CNW/ - Kallisto Energy Corp. (TSX Venture: KEC) ("Kallisto" or the "Company") is pleased to announce that pressure data recorded at its Crossfield 11-26-027-01 W5M well confirms the discovery of a virgin pool in the Lower Mannville formation. The data, recorded during a 16 day buildup, indicates a reservoir pressure of approximately 21.7 MPa or approximately 3,150 psi.
Kallisto previously confirmed commercial capability of the Lower Mannville formation with the drilling of a well located at 10-34-027-1 W5M. Buildup pressures taken from the 10-34 well in conjunction with completion operations indicated reservoir pressure to be approximately 20.9 MPa or approximately 3,030 psi. The independent reserve evaluation completed for the Company (as of December 31, 2011) placed the value of the 10-34 reserves at $2,873,000 (2P, NPV 10% BT).
Completion operations on the 11-26 well are expected to commence as soon as local road bans are lifted. The initial log and core analysis completed on the 11-26 well indicate a sandstone reservoir containing hydrocarbons, very similar to the 10-34 well.
Kallisto also announces that the ninth and tenth wells of its Pembina drilling program have been placed on production.
The 12-34-047-03 W5 well was placed on production February 26, 2012. The first 30 days gross production for the 12-34 well averaged approximately 275 boe per day, including 240 bbls of oil per day. Current production from the well is approximately 246 boe per day, including 204 bbl of oil per day.
The tenth well of the program, located at 13-04-048-03 W5, was placed on production on March 27, 2012. Gross production for the first 26 days averaged 186 boe per day, including 176 bbls of oil per day. Current gross production from the 13-04 well is approximately 207 boe per day, including 195 bbls of oil per day.
Current total gross production from the Company's ten Pembina area wells is approximately 690 boe per day, including 575 bbls of oil per day. Kallisto has a 30% interest in its Pembina wells. Since the beginning of production operations, the ten wells drilled on Kallisto Pembina lands have produced approximately 376,000 boe, including 325,000 bbls of oil. The independent reserve evaluation completed for the Company (as of December 31, 2011) placed the value of Kallisto's Pembina reserves at $15,998,000 (2P, NPV 10% BT).
Kallisto is a Calgary-based junior resource company engaged in the exploration, development and production of oil and natural gas in Alberta.
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, timing of well completions and operations. 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.
For further information:
President and Chief Executive Officer
Telephone: (403) 237-9996