Kallisto Begins Drilling at Crossfield Well

Kallisto announced that its second Crossfield, Alberta well has spudded. The well, located at 08-20-028-01 W5, is a horizontal well targeting the Viking formation and is expected to be completed with multi-stage fracture stimulations. Kallisto has a 50% interest in the well.

The Company has also closed the Crossfield property acquisition previously announced on September 7, 2010. Following the exercise of rights of first refusal held by certain working interest owners, the Company acquired approximately 3.6 net sections of Viking rights and four Elkton gas wells with estimated net reserves of 124 Mboe.

Upon closing of this acquisition, Kallisto's land position at Crossfield is more than 30 net sections that are prospective for Viking horizontal oil development. The Company owns an additional 98 net sections of P&NG rights at Crossfield in zones other than the Viking.