NuLoch Resources Inc.
TSX VENTURE : NLR.A
TSX VENTURE : NLR.B

NuLoch Resources Inc.

January 08, 2008 09:07 ET

NuLoch Resources Announces Significant Exploration Success and Production Gains

CALGARY, ALBERTA--(Marketwire - Jan. 8, 2008) - NuLoch Resources Inc. (TSX VENTURE:NLR.A)(TSX VENTURE:NLR.B) provides the following operational update.



Highlights

- Boosted average production to 465 boe/d during part of December 2007
- Enhanced oil production to 200 boe/d at Balsam
- Active Q4 2007 drilling program resulted in two natural gas
discoveries
- Incremental behind-pipe production from Q4 program estimated at 300
to 400 boe/d
- achieved facilities optimization of Balsam light oil production
- building exploration inventory and momentum going forward


Estimated Average Daily Production Q4 2007 (i)

Oil and NGL (bbls/d) 72
Natural gas (mcf/d) 1,625
Combined (boe/d) 343

(i) based on field estimates of daily net sales


Balsam Oil Facilities Optimization

In Q3 2007, NuLoch participated in the drilling of a follow-up well (0.3 net) at Balsam. Combined initial gross productive capability of the two Kiskatinaw wells exceeds 600 barrels of oil per day (34 degree API gravity) necessitating pumping, treating and storage upgrades. That work was largely completed in December 2007 and the first eleven days of optimized production averaged approximately 200 boe/d net to NuLoch.

Exploration Success

The Company drilled 4 (3.6 net revenue-interest) wells during Q4 2007.

Two of those wells (2.0 net), located at Enchant, encountered natural gas in highly permeable zones. These wells are expected to add approximately 2.0 mmcf/d to NuLoch's production base when placed on-stream late in Q1 2008.

At Pembina, completion operations are underway in the Mannville on a 60 percent revenue-interest well that may result in a third natural gas discovery attributable to the Q4 2007 program. There is an additional up-hole zone of interest.

One (1.0 net) well drilled in Q4 2007 was dry and abandoned.

Drilling Opportunities

At Enchant, the Company is currently evaluating potential follow-up locations on two sections of option land (65 percent revenue-interest) offsetting one of the Q4 2007 exploration discoveries.

At Little Bow, pursuant to a one section farm-in, NuLoch intends to drill an 1100 m well (50 percent revenue-interest) targeting known Glauconite oil reservoirs. The Company shot 3D seismic over the farm-in lands in Q4 2007 and has options to drill additional locations if successful.

At Pembina, Nuloch has earned two sections of land with options on two additional sections with multi-zone potential. An additional section of land (60 percent working interest) was acquired at a recent Alberta land sale. Depending upon the results of completion operations described above, the Company may drill wells on this new exploration project.

At Farrow, NuLoch has an option to drill a well (70 percent revenue-interest) based upon an on-going evaluation of 3D seismic shot late in Q4 2007. The target is light oil and natural gas in the Glauconite.

The Company has 25 (25.0 net) shallow natural gas development locations at Enchant that have been deferred given high service industry costs and recent commodity pricing trends. These locations can be drilled and brought on-stream quickly if those external parameters improve.

Advisories

Use of Barrels of Oil Equivalent (boe)

Disclosure provided herein in respect of boe units may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf of natural gas to 1 bbl of crude oil is based on an energy equivalency conversion method primarily applicable at the burner tip and may not represent a value equivalency at the wellhead.

Forward-Looking Statements

Certain statements in this document or incorporated herein by reference constitute "forward-looking statements". These forward-looking statements can generally be identified as such because of the context of the statements, including words indicating that the Company "believes", "anticipates", "expects", "plans" 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); asset retirement obligations; 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.
    R. Glenn Dawson
    President and Chief Executive Officer
    (403) 920-0455
    or
    NuLoch Resources Inc.
    2200, 444 - 5th Avenue SW
    Calgary, Alberta T2P 2T8
    (403) 920-0455
    (403) 920-0457 (FAX)
    Email: nuloch@nuloch.ca