KALLISTO PROVIDES CROSSFIELD AND PEMBINA UPDATE, AKALLISTO PROVIDES CROSSFIELD AND PEMBINA UPDATE, ANNOUNCES INCREASED BANK LINE
CALGARY, Oct. 12, 2010 (Canada NewsWire via COMTEX News Network) --
Kallisto Energy Corp. (TSX Venture: KEC) ("Kallisto" or the "Company") is pleased to announce that its first Crossfield, Alberta Viking horizontal oil well has been placed on production. The well, located at 1-29-28-1 W5, was completed with 11 multi-stage fracture stimulations. Production rates will be released once stabilized rates have been established. Kallisto has a 50% working interest in this well. The Company owns in excess of 30 net sections at Crossfield that are prospective for Viking oil development and an additional 98 net sections of P&NG rights at Crossfield in zones other than the Viking. "We are excited about the Viking play", said Robyn Lore, President and CEO of Kallisto. "Our Crossfield capital program for the remainder of 2010 will be finalized in the coming weeks".
In addition, drilling operations at the Company's sixth Pembina, Alberta Cardium horizontal well, located at 12-33-47-3 W5, have concluded and the well is expected to be completed within the next two weeks with up to 16 multi-stage fracture stimulations. This is the sixth well of a planned 12 well drilling program at Pembina. Kallisto has a 30% interest in the Pembina wells.
Kallisto also announces that its lenders have agreed to increase the amount the Company can draw under its loan facility from $4,500,000 to $6,500,000. This increase is a result of the Company's very successful Pembina drilling program.
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, well completion schedules, well production, capital programs and 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.