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Press release from CNW Group

Kallisto Provides Pembina Update and Announces Receipt of Crossfield Drilling License

Monday, February 27, 2012

Kallisto Provides Pembina Update and Announces Receipt of Crossfield Drilling License08:00 EST Monday, February 27, 2012CALGARY, Feb. 27, 2012 /CNW/ - Kallisto Energy Corp. (TSX Venture: KEC) ("Kallisto" or the "Company") is pleased to announce that its ninth successful Pembina, Alberta horizontal Cardium oil well has been drilled, completed, flow-tested and is awaiting tie-in of a gas conservation pipeline to allow the well to be placed on production. The well, located at 12-34-047-03 W5M, commenced drilling on February 1, 2012. Completion operations, which included an 18 stage energized water fracture stimulation, were completed on February 16, 2012. The cost of drilling and completing the well is expected to be approximately $2,373,000 million, ($712,000 net to the Company).In addition, the eighth Pembina oil well, located at 5-34-047-03 W5M, was placed on production November 25, 2011. Production for the first 30 days from the 5-34 well averaged approximately 226 boe per day (68 net to the Company), including approximately 198 bbls per day of oil (59 net to the Company).Kallisto has a 30% working interest in all of its Pembina oil wells.Crossfield Drilling License ApplicationOn September 2, 2011 the Company submitted an application to the Energy Resources Conservation Board ("ERCB") to drill a well at 11-26-027-01 W5M to test the Lower Manville formation. Kallisto previously confirmed commercial productivity of this formation with the drilling of a well located at 10-34-027-1 W5M. CrossAlta Gas Storage & Services Ltd. filed an objection to Kallisto's license application. The ERCB held a public hearing into the drilling application commencing on January 10, 2012 and announced its decision to grant Kallisto the drilling license on February 24, 2012. The drilling license was issued the same day. Conditions of the license restrict fracture completions to 40 tonnes and require certain pressure measurements. The Company expects to spud the 11-26 well in early March, subject to weather conditions and rig availability. Should the 11-26 well be successful, management anticipates completing an expanded 3D seismic program on its lands to identify additional drilling locations.  Kallisto holds more than 5,000 net acres of land in the Crossfield area it believes to be prospective for this geological target.Kallisto is a Calgary-based junior resource company engaged in the exploration, development and production of oil and natural gas in Alberta.Forward Looking InformationThe 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, and timing of well development and operations including the anticipated dates for the drilling of wells. 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: Robyn Lore President and Chief Executive Officer Telephone: (403) 237-9996