NuLoch Resources Reports Increase in Bank Line and Establishes Repeatability in Three Forks Sanish in Saskatchewan and North Dak
June 29 2010 - 5:57AM
Marketwired
NuLoch Resources Inc. (TSX VENTURE: NLR.A) (TSX VENTURE: NLR.B)
(OTCQX: NULCF) corporate production achieved 1,100 boe/d in late
May consisting of 73% light oil. This production included 315 bopd
from Tableland, Saskatchewan and 240 boe/d from North Dakota. There
are 6 wells (1.7 net) currently drilling or awaiting completion.
The Company's available line of credit with a Canadian chartered
bank is currently undrawn and has been increased by 65% to $14.0
million.
NuLoch has drilled six (4.5 net) horizontal oilwells in the
Three Forks Sanish formation at Tableland, Saskatchewan since Q4
2009. The average initial gross production rate over 30 days
(IP-30) is 165 bopd for the first four (3.1 net) of those wells. A
fifth well (0.7 net) is still in its initial 30 day period while
the sixth (0.7 net) awaits its multi-stage fracture completion. In
addition to the IP-30 oil rates, these wells produce approximately
20 boe of liquids-rich natural gas per 100 barrels of crude oil.
Capturing this value with centralized processing facility will be
part of the development of this field.
Glenn Dawson, President and CEO of NuLoch, stated, "We have
successfully extended our quickly developing Three Forks Sanish
crude oil resource play in North Dakota onto our extensive 32,000
net acre position in Saskatchewan. A 100% success rate on our first
five wells is a considerable achievement in any emerging play.
There are some variations in our completion techniques and we
continue to evaluate our cased-hole hydraulic fracturing methods to
enhance oil rates and ultimate recoveries. The geology at Tableland
is similar to North Dakota and we have de-risked future development
for light oil (40 degree API) on 20% of our 52 net sections in
Canada. We have identified an inventory of 32 locations to develop
these de-risked lands at three wells per section. Drilling will
continue in the second half of 2010 as we plan to step out to prove
more of our land."
In North Dakota, the 300 bopd IP-30 we averaged over the last
five Three Forks Sanish one-mile horizontal wells (0.5 net) and
early positive results from four two-mile wells (0.2 net) has
accelerated the pace of development on NuLoch's 32,500 net acres in
Divide and Burke counties. Two additional drilling rigs are being
brought to the play that will result in approximately four wells
being drilled each month in the second half of 2010. At that pace,
with interests in more than 400 sections of land in North Dakota,
NuLoch has eight years of drilling inventory in the Three Forks
Sanish formation assuming only one well per section. Portions of
this land is also prospective in the Middle Bakken with one well
(0.1 net) drilling and another (0.2 net) planned for this summer
utilizing 2-mile horizontal laterals with 30 fracture stages.
NuLoch's working interest ranges from 10% to 30% on most of the
land.
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.
Common Shares Outstanding
Class A : 95,448,538
Class B : 652,500
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.
Contacts: NuLoch Resources Inc. R. Glenn Dawson President and
CEO (403) 920-0455 (403) 920-0457 (FAX) nuloch@nuloch.ca NuLoch
Resources Inc. 2200, 444 - 5th Avenue SW Calgary, Alberta T2P
2T8
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