CALGARY, ALBERTA–(Marketwired – March 20, 2014) – Kallisto Energy Corp. (TSX VENTURE:KEC) (“Kallisto” or the “Company”) is pleased to announce it has increased proved & probable reserves by approximately 27% over the previous year. The additions are the result of a new discovery, reserve revisions and the Company’s acquisition at Minnehik – Buck Lake. Details of the reserves changes are:
|December 31, 2013||Company Share of
Reserves (Gross) (1)
|Company Share of
Net Present Value
(Before Income Tax) (1)
|Proved developed producing||351.3||1,162.7||20.9||565.9||15,117.1||12,870.5|
|Total proved & probable||989.3||2,255.5||58.7||1,423.9||26,133.7||20,613.1|
|December 31, 2012|
|Proved developed producing||404.1||991.4||12.2||581.5||15,569.4||13,232.9|
|Total proved & probable||787.1||1,776.0||38.9||1,121.9||22,261.1||18,019.9|
|(1)||McDaniel & Associates Consultants Ltd., Evaluation of Oil and Gas Reserves Based on Forecast Prices and Costs as of December 31, 2013|
Kallisto has a diversified asset base with abundant near term drilling opportunities, including:
- Cardium light oil at Minnehik – Buck Lake, Alberta;
- Elkton light oil and Basal Quartz liquids-rich gas at Crossfield, Alberta;
- Shaunavon crude oil at Chambery, Saskatchewan; and
- Doe Creek light oil at Valhalla, Alberta.
Kallisto is targeting to spend $6,000,000 – $8,000,000 on these drilling opportunities in 2014. To complete the drilling program, Kallisto will use internally generated cash flow but will also require additional sources of capital. Such additional capital may come through: joint venture or farm-out agreements; disposition of non-core infrastructure assets; additional equity financing; or corporate transactions. Management is in discussions with various parties on all these options and will finalize its 2014 drilling program and capital budget and report back to shareholders when additional capital sources have been secured.
The Company is rationalizing certain of its non-core assets in an effort to partially fund its 2014 drilling program:
- Negotiations are in the final stages on the sale of an infrastructure asset in the Crossfield, Alberta area. The sale is expected to be completed by June 30, 2014;
- In January 2014, the Company engaged Sayer Energy Advisors to assist in the disposition of its Dawson oil transportation pipeline; and
- On March 3, 2014, the Company sold minor producing properties in the Crossfield, Alberta area for $350,000.
Kallisto regrets to announce that Mr. Ross Clark, Executive Vice-President of the Company, is retiring effective March 28, 2014. Ross joined Kallisto in 2008 and was instrumental in the turnaround of the Company, including the development of its Pembina, Alberta property. The board, management and staff wish to express their appreciation to Ross for his work and dedication to the Company and wish him well.
Kallisto also announces that it has filed its Consolidated Financial Statements for the year ended December 31, 2013 and the accompanying Management’s Discussion and Analysis. These documents are available for viewing under Kallisto’s profile at www.sedar.com.
Kallisto is a Calgary-based junior resource company engaged in the acquisition, exploration, development and production of oil and natural gas, primarily in Alberta.
Forward Looking Information
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: future drilling opportunities on Company lands; the Company’s 2014 drilling program; the potential sources of capital to fund the 2014 drilling program; the potential sale of non-core assets; and the volume and net present value of Company proved & probable reserves. 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 and Annual Information Form dated April 30, 2013 which is filed under the Company’s SEDAR profile at www.sedar.com.
NEITHER THE 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.
President and Chief Executive Officer