CALGARY, ALBERTA–(Marketwired – Sept. 9, 2013) – Kallisto Energy Corp. (TSX VENTURE:KEC) (“Kallisto” or the “Company”) announces that is has acquired a 100% working interest in two sections of land in the Minnehik – Buck Lake area of Alberta (the “Lands”). The Lands were acquired pursuant to the terms of the Farmout and Settlement Agreement (the “Agreement”) announced on May 30, 2013 between Kallisto and a company with which it holds a secured loan facility (“Loanco”). The Lands are prospective for Cardium light oil.
As part of the settlement of the outstanding loan, the Agreement specified that Loanco would make a loan payment of approximately $850,000 on or before August 31, 2013. That payment was not made as contemplated. As a result, the interest of Loanco in the Lands was quit claimed, surrendered and conveyed to Kallisto pursuant to a Quit Claim, Surrender and Conveyance of Agreement dated September 1, 2013 in full satisfaction of the outstanding loan.
In addition, Loanco had previously entered into a farmout agreement (the “Farmout Agreement”) with an industry partner (the “Partner”) pursuant to which the Partner agreed to pay 37.5% of the capital costs of a test well to earn a 25% working interest in a portion of the Lands with an option to participate in the drilling of a second well on the same terms to earn a 25% working interest in the balance of the Lands. Kallisto has agreed, subject to certain modifications to the Farmout Agreement, to recognize the farmout terms with the Partner.
Subject to Kallisto completing the sale of certain non-core assets and/or other ongoing funding initiatives, it is expected that a horizontal well will be drilled on the Minnehik – Buck Lake lands in 2013.
Kallisto is a Calgary-based junior resource company engaged in the exploration, development and production of oil and natural gas, primarily in Alberta.
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 the timing of drilling activities on its Minnehik – Buck Lake lands, potential Cardium oil discoveries, the recognition by the Company of the Farmout Agreement with the Partner, the sale of non-core assets and other funding initiatives. 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 its ability to obtain funding and the amount, nature and sources thereof), competitive advantages, plans for and results of drilling activity, environmental matters, business prospects and opportunities and its ability to come to terms with the Partner on the Farmout Agreement. 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 and Annual Information Form dated April 30, 2013 which is filed under the Company’s SEDAR profile at www.sedar.com.
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President and Chief Executive Officer