NuLoch Resources Inc.

NuLoch Resources Inc.

July 07, 2005 16:15 ET

NuLoch Announces Completion of Plan of Arrangement Involving Enerplus Resources Fund

CALGARY, ALBERTA--(CCNMatthews - July 7, 2005) - NuLoch Resources Inc. ("NuLoch") has commenced operations as a junior oil and gas company following the successful closing of the Plan of Arrangement involving Enerplus Resources Fund ("Enerplus") and TriLoch Resources Inc. ("TriLoch") (the "Arrangement"). NuLoch will be engaged in the exploration for, and the acquisition, development and production of, oil and natural gas primarily in the Province of Alberta. NuLoch Class A Shares and Class B Shares have been conditionally approved for listing on the TSX Venture Exchange and are expected to start trading on or about July 15, 2005 under the symbols NLR.A and NLR.B.

As a result of the Arrangement, NuLoch retained certain exploratory assets located in the Shouldice area of Alberta that include a 37.5 percent working interest in a natural gas well, 160 gross (80 net) acres of undeveloped land and a farm-in commitment to drill one exploratory well. At Enchant, Alberta, NuLoch has access to approximately 43 sections of farm-in and option lands with shallow gas potential. On those lands, it has options to drill up to 35 wells to earn interests in 22,400 gross acres.

NuLoch's initial strategy will be to focus on the exploration and development of these retained assets. Additionally, NuLoch intends to pursue strategic land, farm-in, joint venture, asset and corporate acquisition opportunities in circumstances where further exploitation and exploration prospects exist.

NuLoch's management team consists of Allan E. Spurgeon, Chairman and Director; James N. McIndoe, President, Chief Executive Officer and Director; R. Glenn Dawson, Executive Vice-President and Director; Brian D. Murray, Chief Financial Officer; Terry A. Schneider, Vice-President, Operations; Bruce A. Lawrence, Director; and John R. (Jack) Perraton, Director. These individuals were all directors or officers of TriLoch Resources Inc. In addition to the officers and directors listed above, NuLoch will initially have three other people employed at its office in Calgary, Alberta. The officers and directors and employees of NuLoch beneficially own approximately 46 percent of NuLoch's outstanding Class A Shares.

Initial financing for NuLoch has been provided by two private placements. The first private placement offered NuLoch Class A Shares to employees and directors of NuLoch at $0.25 per share and realized aggregate proceeds of $700,000. The second private placement of 7,250 NuLoch units with each unit comprised of 400 Class A Shares at $0.25 each and 90 Class B Shares at $10.00 each was closed on July 7, 2005 for aggregate proceeds of $7,250,000.

NuLoch now has approximately 7,712,695 Class A Shares and 652,500 Class B Shares outstanding with net proceeds and assets of approximately $7.7 million.

At the Annual and Special Meeting of TriLoch security holders held on June 29, 2005 the Class A Shareholders of TriLoch approved the NuLoch stock option plan which authorizes the NuLoch Board of Directors to issue stock options to directors, officers, employees or other service providers of NuLoch. The security holders also approved the grant of options by NuLoch entitling the holder to acquire a NuLoch Class A share at $0.35 per share exercisable for a period of five years.

Allan E. Spurgeon, James N. McIndoe and R. Glenn Dawson will each receive 145,000 options; Terry Schneider and Brain D. Murray will each receive 120,000 options; and Bruce A. Lawrence and John R. (Jack) Perraton will each receive 25,000 options. In addition, certain employees of NuLoch will be granted an aggregate of 97,500 options.

The corporate information contained in these pages contains forward-looking information. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by NuLoch at the time of preparation, may prove to be incorrect. The actual results achieved in future periods will vary from the information provided herein and the variations may be material. Consequently, there is no representation by NuLoch that actual results achieved during future periods will be the same in whole or in part as the information contained herein.

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

Contact Information

  • NuLoch Resources Inc.
    Allan E. Spurgeon
    (403) 920-0455
    NuLoch Resources Inc.
    James N. McIndoe
    President and CEO
    (403) 920-0455
    (430) 920-0457 (FAX)
    NuLoch Resources Inc.
    2200, 444 - 5th Avenue SW
    Calgary, Alberta T2P 2T8