Kallisto Snaps Up Additional Stake in Alberta Well
Kallisto Energy has completed the acquisition of an additional working interest in two of its three producing Pembina, Alberta Cardium horizontal oil wells. These interests were acquired pursuant to options exercised under the terms of farmout agreements whereby the Company farmed out a portion of its interest in the two wells. The acquisitions completed are as follows:
- An 8.333% working interest in the 6-4-48-3W5 well for cash consideration of $390,296 (subject to certain purchase price adjustments), effective as of February 1, 2010. Following the acquisition, Kallisto has a 25% working interest in this well; and
- A 3.0% working interest in the 6-33-47-3 W5 well for cash consideration of $265,000, effective as of December 1, 2009. Following the acquisition, Kallisto has a 16.667% working interest in this well.
The Company has additional options to increase its working interest in 6-33-47-3 W5 and 16-34-47-3 W5 to 25% on terms similar to those of the 6-4-48-3 W5 well. Management expects to exercise those options within the next few weeks.
In addition, completion operations on the fourth horizontal well of its Pembina drilling program located at 13-33-47-3 W5, which included 14 multi-stage fracture stimulations, have been successfully concluded. Flow-back operations to recover completion fluid have commenced and it is expected that the well will be placed on production within the next few weeks. Kallisto has a 30% working interest in this well.