Kallisto Energy Corp. announce that its application to drill an Elkton oil test at 16-26-027-01W5 ("16-26") has been approved by the Alberta Energy Regulator (AER).

In August, 2012, Kallisto applied for a license to drill the 16-26 well. The owners of the Crossfield gas storage facility, CrossAlta Gas Storage & Services Ltd., TransCanada Pipelines Limited and TransCanada Energy Ltd. (collectively "TransCanada"), 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 AER conducted a public hearing on the application, commencing on February 12, 2013 and concluding on April 4, 2013. The AER announced its decision to grant Kallisto the drilling license on July 23, 2013. Conditions of the license require certain measurements systems to be put in place as well as certain drilling and abandonment requirements, none of which are considered by the Company to be onerous.

The Company expects to spud the 16-26 well in mid-August, subject to weather conditions and rig availability. Should the 16-26 well be successful, management anticipates drilling additional locations.

Tags: Kallisto Energy