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

NuLoch Resources Inc.

September 25, 2007 17:00 ET

NuLoch Resources Operations Update and Presentation

CALGARY, ALBERTA--(Marketwire - Sept. 25, 2007) - NuLoch Resources Inc. (TSX VENTURE:NLR.A) (TSX VENTURE:NLR.B) has cased its previously announced step-out development well at Balsam. Completion operations will commence immediately. This well is a follow-up to the 160 bbls/d (50 bbls/d net) oil well drilled last year. The Company has a 31.5 percent working interest in both of these wells.

This activity is in addition to NuLoch's prospect inventory of five (3.5 net) southern Alberta drilling locations on Company-owned lands. 3D seismic programs have been commenced to set the stage for fall drilling. NuLoch's existing reserves are mostly natural gas and, in a quest for better balance, the Company is focusing effort to the development of oil opportunities. That may include the pursuit of prospects with longer lead-times with higher risk and higher reward. NuLoch continues to negotiate additional farm-in opportunities with several industry participants.

The Company has a large inventory of development operations on its Enchant shallow natural gas property (100 percent working interest) comprised of 25 wells and nine re-completions. However, the price disparity between oil and natural gas on an energy-equivalent basis continues to widen. These shallow natural gas locations will remain in inventory pending a rebound in natural gas prices and further easing of service industry costs.

Production averaged 269 boe/d in the first half of 2007 and is currently 360 boe/d. Capital investment totalled $2.8 million in the six months ended June 30, 2007 with plans to invest a further $5.0 million over the last half of the year.

NuLoch Resources Inc. is an emerging junior oil and natural gas exploration and development company based in Calgary. Additional information can be found at www.sedar.com and the Company's corporate presentation is available at www.nuloch.ca.

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.

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

Contact Information

  • NuLoch Resources Inc.
    James N. McIndoe
    Chief Executive Officer
    (403) 920-0455
    or
    NuLoch Resources Inc.
    R. Glenn Dawson
    President
    (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
    Website: www.nuloch.ca