NuLoch Resources Inc.

NuLoch Resources Inc.

June 06, 2006 16:39 ET

NuLoch Expands into North-West Alberta and Provides Operational Update

CALGARY, ALBERTA--(CCNMatthews - June 6, 2006) - NuLoch (TSX VENTURE:NLR.A) (TSX VENTURE:NLR.B) (the Company) has expanded its operations into north-west Alberta with plans to drill 3 (1.3 net) wells in 2006. The targets, located 150 km north-west of Grand Prairie, at Balsam, include sweet natural gas and light oil. The Company will earn mineral interests in 1,280 acres. Two of the locations offset known pools while the third will explore for a new natural gas reservoir.

NuLoch has agreed to reimburse certain land and seismic costs incurred by the operator. The first location, a 2,100 metre step-out well targeting natural gas, is drilling. NuLoch will pay two-thirds of the drilling costs to casing-point and will have a 50 percent working interest in the well and 640 acres. The exploration well is planned for drilling on this 50 percent working interest land later in 2006 and will be the third well in the program.

The second well to be drilled will target crude oil on 640 acres. NuLoch will pay 45 percent of the well costs to earn a 31.5 percent working interest.

NuLoch's existing core area is at Enchant in southern Alberta where the Company currently produces approximately 2.0 mmcf/d of natural gas from 38 wells in the Second White Specks formation. There are 25 additional locations to drill to fully develop the prospect on 4-well-per-section spacing and the Company has plans to commence drilling six of them in the fall of 2006.

Over the next two months, NuLoch expects to drill five wells in the Enchant region targeting natural gas in the Mannville Group. The first of these locations was spud on June 4, 2006.
Cautionary Statements

Certain statements in this document or incorporated herein by reference may constitute "forward-looking statements". These forward-looking statements can generally be identified as such because of the context of the statements including words such as the Company "believes", "anticipates", "expects" or words of a similar nature. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions which will, among other things, impact demand for and market prices of the Company's products; industry capacity; the ability of the Company to implement its business strategy, including exploration and development activities; the ability of the Company to complete its capital programs; successful negotiations with bankers and other third parties; the success of exploration and development activities; production levels; government regulations and the expenditures required to comply with them (especially safety and environmental laws and regulations); site restoration costs; and other circumstances affecting revenues and expenses.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • NuLoch Resources Inc.
    James N. McIndoe
    President and CEO
    (403) 920-0455
    (403) 920-0457 (FAX)
    NuLoch Resources Inc.
    2200, 444 - 5th Avenue SW
    Calgary, Alberta T2P 2T8