KALLISTO ANNOUNCES ADDITIONAL CROSSFIELD ACQUISITIONS AND PROVIDES DRILLING
UPDATE
CALGARY, Sept. 7 /CNW/ - Kallisto Energy Corp. (TSX Venture: KEC) ("Kallisto" or the "Company") is pleased to announce two property transactions at its Crossfield, Alberta Viking oil project:
1. The Company exercised on an option by acquiring a 50% interest in three and one-half sections of Viking P&NG rights at Crossfield. The land was originally acquired by one of the Company's joint venture partners at a recent Alberta land sale; 2. The Company entered into a purchase and sale agreement to acquire various P&NG rights, including four net sections of Viking rights. Closing of the transaction is expected to occur on or about October 20, 2010 following the completion of due diligence. Included in the acquisition are four Elkton gas wells with estimated net reserves of 124 Mboe. Certain of the lands (approximately 1.4 sections) are subject to rights of first refusal held by existing working interest owners.
Upon closing of the second transaction, Kallisto's land position at Crossfield will be approximately 30 net sections that is prospective for Viking oil development. The Company also owns more than 98 net sections of P&NG rights at Crossfield in zones other than the Viking.
The Company also announces that its first Crossfield, Alberta well has been drilled, cased and prepared for completion. The well is a horizontal well targeting the Viking formation and is expected to be completed with up to 11 multi-stage fracture stimulations. Completion operations are expected to commence within the next two weeks. The horizontal well is offsetting a vertical well which was completed in the Viking zone and produced approximately 13,700 barrels of light sweet oil with very low gas and water production. Kallisto has a 50% interest in the well, the first of its planned 5 well Crossfield Viking drilling program in which the Company will participate during 2010.
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, acquisitions, acreage estimates, well completion schedules, 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.
For further information: Robyn Lore, President, Telephone: (403) 237-9996, Facsimile: (403) 264-0416
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