NuLoch Resources Expands Borrowing Capacity

CALGARY, ALBERTA--(Marketwire - December 8, 2010) - NuLoch Resources Inc. (TSX VENTURE:NLR)(OTCQX:NULCF) (NuLoch or the Company) has expanded the borrowing base in respect of its $14 million demand revolving operating credit facility with a Canadian chartered bank. The line is now established at $25 million and is currently undrawn. In addition to this expanded facility, NuLoch has existing cash balances in excess of $14 million. To assist the bank in their assessment of the borrowing base, NuLoch provided an independent interim reserve report with a September 30, 2010 effective date that evaluated its Saskatchewan and North Dakota petroleum properties.

Glenn Dawson, NuLoch's President and CEO said, "The interim reserve report demonstrates that NuLoch has delivered significant reserves growth in Saskatchewan and North Dakota with 3.7 million barrels of oil equivalent (MMboe) proved and 6.4 MMboe on a proved plus probable basis. The expanded line of credit will enhance the strength in our balance sheet as we proceed with our development program in the Williston Basin."

NuLoch commissioned AJM Petroleum Consultants (AJM), its independent petroleum engineers, to prepare a report of the Company's Williston Basin petroleum reserves with an effective date of September 30, 2010. The properties were evaluated in accordance with NI 51-101. The Company's Alberta assets were not included in this evaluation.

Estimates of reserves of petroleum and natural gas and associated future net revenues as at September 30, 2010 arising solely from its Williston Basin properties in Saskatchewan and North Dakota (and excluding Alberta) are presented below.


Future Net

Company Gross Revenue

Reserves(1)(2) Before Tax(1)(3)

----------------------------- --------------------- -----------------

Light & Nat-

Medium ural ($ millions)

Oil Gas Total Discount Rate

Reserves Category Mbbl MMcf Mboe 0% 10% 15%

----- ------ ------ ----- ----- -----


----------------------------- --------------------- -----------------


Developed Producing 314 - 314 20.5 9.9 7.7

Developed Non-producing - - - - - -

Undeveloped 1,094 - 1,094 63.0 20.0 12.0

----- ------ ------ ------ ----- -----

Total Proved 1,408 - 1,408 83.4 29.9 19.7

Probable 1,136 - 1,136 107.1 21.9 13.2

----- ------ ------ ------ ----- -----

Total Proved plus Probable 2,544 - 2,544 190.5 51.8 32.9

----- ------ ------ ------ ----- -----

----- ------ ------ ------ ----- -----


----------------------------- --------------------- -----------------


Developed Producing 347 38 354 19.3 10.9 9.2

Developed Non-producing 62 - 62 3.2 1.5 1.1

Undeveloped 1,884 - 1,884 75.6 18.1 8.3

----- ------ ------ ------ ----- -----

Total Proved 2,293 38 2,299 98.1 30.5 18.6

Probable 1,544 31 1,549 114.9 21.9 12.3

----- ------ ------ ------ ----- -----

Total Proved plus Probable 3,837 69 3,849 213.1 52.4 30.9

----- ------ ------ ------ ----- -----

----- ------ ------ ------ ----- -----



----------------------------- ---------------------


Developed Producing 661 38 668

Developed Non-producing 62 - 62

Undeveloped 2,978 - 2,978

----- ------ ------

Total Proved 3,701 38 3,707

Probable 2,680 31 2,685

----- ------ ------

Total Proved and Probable 6,381 69 6,393

----- ------ ------

----- ------ ------

(1) Columns and rows may not add due to rounding.

(2) Six mcf of natural gas is considered equivalent to 1 barrel of oil (see


(3) Future net revenues do not represent fair market value.

(4) Future net revenues for Canadian and United States properties are not

added together because each property was evaluated using its functional



Future Development Costs

The following table sets forth the future development costs which have been deducted in determining future net revenue attributable to the reserves categories noted below.


Future Development Costs


Forecast Prices and Costs



Saskatchewan C$ North Dakota US$

-------------------- -------------------

Proved Proved

plus plus

Year Proved Probable Proved Probable

------------------------------ -------- --------- -------- --------

2010 Q4 5.0 7.3 5.2 6.8

2011 21.9 25.5 26.5 31.8

2012 2.4 6.2 12.8 18.1

Remaining - - - -

------------------------------ -------- --------- ------- --------

Total (undiscounted) 29.3 39.0 44.5 56.7

-------- --------- ------- --------

-------- --------- ------- --------


Future prices used in the forecast of net revenue are based on those estimated by AJM as at September 30, 2010. The first five years of forecast prices for certain benchmarks are summarized below:


Five-Year Forecast of Future Prices


Oil Oil

WTI Edmonton

Year ($US/bbl) ($CDN/bbl)

---- --------- ----------

2010 Q4 80.00 80.20

2011 85.15 85.50

2012 88.45 90.65

2013 92.85 95.30

2014 97.40 100.05

2015 104.90 107.85



Reserves Disclosure

Reserves information presented relates to NuLoch's working interest share of reserves and present values as at September 30, 2010. The reserves are reported using AJM's forecast prices and costs. Complete reserves disclosure will be included in the Company's Form 51-101F1 filing for the year ended December 31, 2010. The reserves definitions used in this document are consistent with the Company's last NI 51-101 annual reserves filing included in its Annual Information Form posted on SEDAR on April 30, 2010 (the AIF).

The Company gross reserves on a proved plus probable basis for Canada as a whole, as at December 31, 2009, as reported in NuLoch's AIF, was 2,783 Mboe and the present value of the associated future net revenue was C$31.9 million on a before tax basis using a 10% discount factor. The Company gross reserves on a proved plus probable basis for the United States as at December 31, 2009, as reported in NuLoch's AIF, was 672 Mboe and the present value of the associated future net revenue was US$7.9 million (C$8.3 million) on a before tax basis using a 10% discount factor. The AJM Report prepared with an effective date of September 30, 2010 did not evaluate all properties of NuLoch. The estimates of resources for individual properties may not reflect the same confidence level as estimates of resources for all properties, due to the effects of aggregation.

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.

Use of Estimates

The net present value of future net revenue attributable to the Company's reserves is stated without provision for interest costs and general and administrative costs, but after providing for estimated royalties, production costs, development costs, other income, future capital expenditures, and well abandonment costs for only those wells assigned reserves by AJM. The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to effects of aggregation. Actual recoveries may be greater than or less than the estimates provided herein and there is no guarantee that the estimated reserves will be recovered. It should not be assumed that the values of future net revenue attributable to the Company's reserves represent the fair market value of those reserves.

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.

Class A common shares outstanding: 122,332,907

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.
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