CALGARY, ALBERTA--(Marketwire - April 15, 2008) - NuLoch Resources Inc. (TSX VENTURE: NLR-A.V) (TSX VENTURE: NLR-B.V) is reporting progress in various field operations and is currently producing in excess of 500 boe/d.
Tableland, Saskatchewan NuLoch has finished drilling its first horizontal well in the Bakken / Sanish prospect at Tableland. A single lateral section measuring 1,434 metres has been drilled in the Sanish formation at a sub-surface depth of 2,250 metres. An un-cemented liner, fitted with expandable packers, has been run in the hole and will permit well completion with 11 sequential fracture stimulation operations over the length of the horizontal section. This completion is scheduled to commence after spring break-up and a meaningful evaluation of results is not expected until late-May. The Lower Bakken Member is a fractured, over-pressured, oil-generating source rock. The Dolomitic Sanish Sandstone is a fractured, low-permeability, oil-saturated unit that lies conformably below the Lower Bakken Shale Member and provides a stable pathway for horizontal drilling. A successful well will confirm an extension to a developing light oil resource play pioneered by a large, private, energy company based in the United States and could set up a significant development program in Canada. After undertaking the completion operation, NuLoch will have earned a 70 percent working interest, before payout, in the well and working interests varying from 35 to 50 percent in approximately 51 sections of largely contiguous farm-in lands. A decision to proceed with follow-up locations will be taken once results of the well have been fully evaluated. Alberta Well Tie-ins Three natural gas wells drilled in Q4 2007 are now being brought on-stream with a planned combined net rate of 2 MMcf/d. One well (0.6 net) commenced production in early April with a gross rate of 1 mmcf/d. A second well (1.0 net) has been tied-in but is not producing as planned. Remedial completion operations are possible. The third well (1.0 net) had the strongest rates on test and is capable of meeting the balance of the 2 MMcf/d additions target. However, the reservoir is slightly sour and requires a complicated four mile tie-in to the nearest plant. A shorter, two mile, tie-in to an existing sweet gathering system with a wellsite sweetening unit is being constructed. Although first production had been expected by now, the Company believes that regulatory hurdles may keep this well behind pipe for several more months. Production Average production in the first quarter of 2008 is estimated at 400 boe/d. Oil production contributed 40 percent of the total due to strong rates from the Company's two oil wells (0.6 net) at Balsam. The tie-ins noted above have added 100 boe/d net and production now exceeds 500 boe/d. Q1 2008 Drilling In addition to the Tableland location, NuLoch drilled four wells (3.0 net) during Q1. Three wells (2.2 net) have been cased and are in various stages of completion. Detailed results will be available after spring break-up. The fourth well (0.8 net) was D&A. Year-End Financial Results NuLoch expects that its audited financial results for the year ended December 31, 2007 will be available on April 17, 2008. 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.ContactsR. Glenn DawsonNuLoch Resources Inc.
President and CEO
(403) 920-0455
(403) 920-0457 (FAX)
Email: nuloch@nuloch.ca
2200, 444 - 5th Avenue SW
NuLoch Resources Inc.
Calgary, Alberta T2P 2T8
2.28 (0.02%)