Kallisto Announces Spudding of Crossfield Elkton Oil Test
Kallisto Announces Spudding of Crossfield Elkton Oil Test
CALGARY, ALBERTA--(Marketwired - Aug. 19, 2013) - Kallisto Energy Corp. (TSX VENTURE:KEC) ("Kallisto" or the "Company") is pleased to announce that it has spudded its 16-26-027-01W5 ("16-26") well. The 16-26 well is being drilled to test for Elkton light oil.
As announced on July 24, 2013, the Company was issued a well license following a public hearing held by the Alberta Energy Regulator. The owners of the Crossfield Gas Storage facility, CrossAlta Gas Storage & Services Ltd., TransCanada Pipelines Limited and TransCanada Energy Ltd., had filed an objection to Kallisto's license application due to a concern over proximity of the 16-26 well to their gas storage facility.
The Company has farmed out a portion of its interest in the 16-26 well, resulting in Kallisto paying 40% of the cost of the well and retaining a 64% working interest. The farmee has paid Kallisto a prospect fee and equalized with the Company on certain other expenses.
Kallisto's Elkton oil development activities are focused on recovering oil from an interpreted oil leg to a prolific Elkton natural gas reservoir which is now used as a gas storage facility. The interpreted oil leg is on the same trend as multiple reservoirs that have similar characteristics. The Company engaged Sproule Associates Limited to complete an independent review of the oil potential on section 26. Their report, entitled "Geological Review of the Oil Potential within the Elkton Formation on Section 26-027-01W5, Crossfield East Elkton Pool D" ("Elkton Geological Review") estimates oil initially in place to be 8.462 million barrels. Kallisto's land holdings applicable to the Elkton Geological Review have been highlighted in yellow on the map found on page 6 of the Company's Annual Information Form dated April 30, 2013. Management believes that the 16-26 well location, being at the lowest point in the interpreted oil leg, is well positioned to exploit the oil initially in place. The Elkton Geological Review and the Company's Annual Information Form can be viewed on the Company's website at www.kallistoenergy.com. While the Company's evaluation and the independent evaluation suggest that there is oil initially in place, there can be no certainty that any portion of the oil will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the oil.
Kallisto is a Calgary-based junior resource company engaged in the exploration, development and production of oil and natural gas, primarily in Alberta.