Kallisto Purchases Additional Interest at Crossfield Project
Kallisto announced two property transactions at its Crossfield, Alberta Viking oil project:
- The Company exercised on an option by acquiring a 50% interest in three and one-half sections of Viking P&NG rights at Crossfield. The land was originally acquired by one of the Company's joint venture partners at a recent Alberta land sale;
- The Company entered into a purchase and sale agreement to acquire various P&NG rights, including four net sections of Viking rights. Closing of the transaction is expected to occur on or about October 20, 2010 following the completion of due diligence. Included in the acquisition are four Elkton gas wells with estimated net reserves of 124 Mboe. Certain of the lands (approximately 1.4 sections) are subject to rights of first refusal held by existing working interest owners.
Upon closing of the second transaction, Kallisto's land position at Crossfield will be approximately 30 net sections that is prospective for
Viking oil development. The Company also owns more than 98 net sections of P&NG rights at Crossfield in zones other than the Viking.
The Company also announced that its first Crossfield, Alberta well has been drilled, cased and prepared for completion. The well is a horizontal well targeting the Viking formation and is expected to be completed with up to 11 multi-stage fracture stimulations. Completion operations are expected to commence within the next two weeks. The horizontal well is offsetting a vertical well which was completed in the Viking zone and produced approximately 13,700 barrels of light sweet oil with very low gas and water production. Kallisto has a 50% interest in the well, the first of its planned 5 well Crossfield Viking drilling program in which the Company will participate during 2010.