NuLoch Resources Inc.

NuLoch Resources Inc.

May 15, 2009 14:15 ET

NuLoch Resources Increases Stake in Bakken/Sanish Prospect

CALGARY, ALBERTA--(Marketwire - May 15, 2009) - NuLoch Resources Inc. (TSX VENTURE:NLR.A)(TSX VENTURE:NLR.B) has increased its stake in the Bakken / Sanish oil prospect at Tableland, Saskatchewan.

In 2008, pursuant to a farm-in, the Company earned approximately 51 gross (20 net) sections of land by drilling a horizontal well in the Sanish formation at a depth of 2,250 metres. The earning represented 50% of the Farmor's interest in the lands to depth drilled.

Through a purchase closed today, NuLoch has now acquired:

- the remaining 50% of the Farmor's interest in the 51 gross sections;

- the Farmor's interests in all of its other lands at Tableland; and

- the Farmor's 100% before payout working interest in a producing Sanish oil well.

A total of 16,800 net undeveloped acres is included in the transaction.

As consideration, NuLoch issued 1,400,000 Class A common shares at a deemed price of $0.25 per share to the Farmor. NuLoch now has 32,179,695 Class A common shares outstanding.

Advantages of the Acquisition

Nuloch is expanding its net undeveloped acreage position at Tableland from 19,500 acres to 36,300 acres. The land is largely contiguous. NuLoch's working interests now range from 50% to 100% and average 74%. There is Bakken and Sanish production in the vicinity.

The horizontal oil well (1.0 net) included in this transaction is producing approximately 15 barrels of oil per day at a 66% water cut.

NuLoch's earning well (1.0 net), drilled in 2008, recovered formation oil and natural gas during extended testing operations. However, water cuts were much higher than expected, load oil was never fully recovered, and the well is currently not producing. A planned follow-up location will use a different completion technique to minimize or eliminate contact with water bearing zones in adjacent formations. A positive technical result combined with improved oil prices could lead to a high-impact development program at Tableland.

Advisory - 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
    NuLoch Resources Inc.
    2200, 444 - 5th Avenue SW
    Calgary, Alberta T2P 2T8
    (403) 920-0455
    (403) 920-0457 (FAX)