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

NuLoch Resources Inc.

October 26, 2009 17:31 ET

NuLoch Resources Closes North Dakota Acquisition

CALGARY, ALBERTA--(Marketwire - Oct. 26, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

NuLoch Resources Inc. ("NuLoch" or the "Company") (TSX VENTURE:NLR.A) (TSX VENTURE:NLR.B) has closed its previously announced acquisition (the "Acquisition") of petroleum and natural gas properties in the Williston Basin of North Dakota. As a step in the process, each of the 23,600,556 subscription receipts of NuLoch issued on October 6, 2009 pursuant to the previously announced "bought deal" financing underwritten solely by Genuity Capital Markets, were exchanged for one NuLoch Class A share with a hold period expiring on Feb 7, 2010. Valiant Trust Company, as trustee for the Subscription Receipts, will issue and mail certificates for the NuLoch Class A common shares to the holders of subscription receipts within 5 business days.

The Company now has 78,287,799 Class A common shares and 652,500 Class B common shares issued and outstanding. Current production, including the acquisition, is estimated at 769 boe/d with a 55% weighting of light and medium oil.

North Dakota Acquisition

In North Dakota, NuLoch has acquired a 10% working interest in 31 producing oil wells and a working interest of approximately 10% in over 240,000 acres of largely contiguous lands. This acreage is adjacent to NuLoch's strategic land block at Tableland Saskatchewan bringing the combined position to over 57,000 net acres. NuLoch's working interest share of production included in the Acquisition, including well completions since announcement of the Acquisition on September 8, 2009, is approximately 142 barrels per day of high-quality light oil primarily from the Three Forks Sanish and Bakken formations. The purchase price, established effective August 1, 2009, is comprised of US$14,000,000 and 1,000,000 Class A common shares of NuLoch. The Company estimates that closing and post-closing adjustments will total to an additional US$950,000 and include drilling and completion operations on 3 horizontal Three Forks Sanish wells undertaken prior to the Acquisition closing date.

NuLoch is now involved in an active drilling program in North Dakota targeting the Three Forks Sanish with 1 gross horizontal well currently in the completion phase and 3 gross horizontal wells drilling or planned prior to fiscal 2009 year end.

Canadian Drilling Update

NuLoch is preparing to drill a horizontal Three Forks Sanish oilwell (0.7 net) at Tableland with spud anticipated in November. At Enchant, the Company is following up on its 2008 oil discovery with a well (1.0 net) planned for spud in November.

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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • NuLoch Resources Inc.
    R. Glenn Dawson
    President and CEO
    (403) 920-0455
    (403) 920-0457 (FAX)
    nuloch@nuloch.ca
    or
    NuLoch Resources Inc.
    2200, 444 - 5th Avenue SW
    Calgary, Alberta T2P 2T8