Kallisto Energy Corp.

Kallisto Energy Corp.

August 19, 2013 09:00 ET

Kallisto Announces Spudding of Crossfield Elkton Oil Test

CALGARY, ALBERTA--(Marketwired - Aug. 19, 2013) - Kallisto Energy Corp. (TSX VENTURE:KEC) ("Kallisto" or the "Company") is pleased to announce that it has spudded its 16-26-027-01W5 ("16-26") well. The 16-26 well is being drilled to test for Elkton light oil.

As announced on July 24, 2013, the Company was issued a well license following a public hearing held by the Alberta Energy Regulator. The owners of the Crossfield Gas Storage facility, CrossAlta Gas Storage & Services Ltd., TransCanada Pipelines Limited and TransCanada Energy Ltd., had filed an objection to Kallisto's license application due to a concern over proximity of the 16-26 well to their gas storage facility.

The Company has farmed out a portion of its interest in the 16-26 well, resulting in Kallisto paying 40% of the cost of the well and retaining a 64% working interest. The farmee has paid Kallisto a prospect fee and equalized with the Company on certain other expenses.

Kallisto's Elkton oil development activities are focused on recovering oil from an interpreted oil leg to a prolific Elkton natural gas reservoir which is now used as a gas storage facility. The interpreted oil leg is on the same trend as multiple reservoirs that have similar characteristics. The Company engaged Sproule Associates Limited to complete an independent review of the oil potential on section 26. Their report, entitled "Geological Review of the Oil Potential within the Elkton Formation on Section 26-027-01W5, Crossfield East Elkton Pool D" ("Elkton Geological Review") estimates oil initially in place to be 8.462 million barrels. Kallisto's land holdings applicable to the Elkton Geological Review have been highlighted in yellow on the map found on page 6 of the Company's Annual Information Form dated April 30, 2013. Management believes that the 16-26 well location, being at the lowest point in the interpreted oil leg, is well positioned to exploit the oil initially in place. The Elkton Geological Review and the Company's Annual Information Form can be viewed on the Company's website at www.kallistoenergy.com. While the Company's evaluation and the independent evaluation suggest that there is oil initially in place, there can be no certainty that any portion of the oil will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the oil.

Kallisto is a Calgary-based junior resource company engaged in the 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 the timing of drilling activities and potential oil discoveries. 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.


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