NuLoch Resources Files Year-End 2010 Financials

NuLoch Resources Inc. (TSX VENTURE:NLR) (OTCQX:NULCF) advises that it has filed
its audited annual financial statements as at December 31, 2010 and 2009 and for
the years then ended along with the associated Management Discussion and
Analysis at www.sedar.com and on its website at www.nuloch.ca.


Monetary amounts are in Canadian dollars unless otherwise indicated.

On January 19, 2011, NuLoch announced its intention to merge with Magnum Hunter
Resources Corporation in an all-share transaction pursuant to a plan of
arrangement.


2010 Accomplishments

Production increase

Increased production 30% to average 917 boe/d in Q4 2010 compared to 708 boe/d
in Q4 2009. Production capability, including forecasts for newly completed
wells, reached 1,550 boe/d in January 2011;


Oil production weighting

Moved to 76% oil production weighting in Q4 2010 compared to 55% in Q4 2009;

Resource acquisitions

Expanded the land position into Burke County, North Dakota with a purchase of
8,500 net acres in January 2010. Focus in 2010 shifted from acquisition to
development of significant blocks of the Company's land;


Capital program

Managed a record capital program in 2010 that totaled $58 million compared to
$21 million in 2009. Eighty percent of the 2010 program was drilling, completion
and related equipment;


Reserve additions

Proved and probable reserves of petroleum and natural gas increased by 190% to
end 2010 at 10,003 Mboe. The associated value of $152 million (before tax, 10%
discounted cash flow) is a 279% increase. All-in finding, development and
acquisition costs in the year were $21.93 per boe (three year average $24.94 per
boe);


Market capitalization

NuLoch's market capitalization increased from $75.7 million on December 31, 2009
to finish 2010 at $254.5 million;


Equity financings

Two equity financings totaling $51.4 million were completed in 2010 and the
Company had no outstanding bank debt at December 31, 2010; and


Production target

Targeting 2011 exit rate of 2,500 boe/d (greater than 90% crude oil) based on a
2011 capital program of $80 million.




HIGHLIGHTS 
----------------------------------------------------------------------------
                                             Periods ended December 31,
                                       -------------------------------------
                                         Three months             Years
                                       ---------------       ---------------
                                         2010    2009          2010    2009
                                       ------- -------       ------- -------
OPERATING
----------------------------------------------------------------------------
Production - daily average
  Oil and NGL              (bbls/d)       695     392           620     239
  Natural gas              (Mcf/d)      1,336   1,899         1,626   2,020
  Combined oil equivalent  (boe/d)(1)     917     708           891     576
Average sales prices
  Oil and NGL              ($/bbl)      77.01   73.26         75.04   65.43
  Natural gas              ($/Mcf)       3.54    4.57          4.06    4.31
  Combined oil equivalent  ($/boe)      63.47   52.77         59.63   42.31

FINANCIAL
($ thousands except per share amounts)
----------------------------------------------------------------------------
Petroleum and natural gas revenue       5,357   3,436        19,383   8,888

Funds flow from operations(2)           1,634   1,282         6,639   2,957
  Per share - basic                      0.01    0.02          0.06    0.06
  Per share - diluted                    0.01    0.02          0.06    0.06

Net earnings (loss)(3)                   (660)  1,238        (2,563)  1,884
  Per share - basic                     (0.01)   0.02         (0.03)   0.04
  Per share - diluted                   (0.01)   0.02         (0.03)   0.04

Working capital (deficiency)
  - end of period                      (2,072)    374        (2,072)    374
Undrawn line of credit                 25,000   7,000        25,000   7,000

Capital expenditures using cash        20,263  19,561        58,069  20,879

COMMON SHARES
(thousands)
----------------------------------------------------------------------------
Class A, end of period                122,333  78,288       122,333  78,288
Class B, end of period                      -     653             -     653
Employee options, end of period        11,816   7,415        11,816   7,415
Underwriter options, end of period        648   1,106           648   1,106
Basic, weighted average combined      119,279  77,407       102,159  49,031
Diluted, weighted average             119,279  77,407       102,159  49,735
----------------------------------------------------------------------------

(1) Six Mcf of natural gas is considered equivalent to 1 barrel of oil (see
    Advisories).
(2) Cash flow from operations before changes in non-cash operating working
    capital (see Advisories).
(3) In Q3 2009 the Company recorded a $2,281,000 gain from an extraordinary
    item.



Outlook

On January 19, 2011, the Company entered into an agreement to be acquired by
Magnum Hunter Resources Corporation (Magnum Hunter) that was unanimously
approved by the boards of directors of both organizations. The transaction is
expected to be completed through a plan of arrangement (the Arrangement) whereby
shareholders of NuLoch will receive 0.3304 of a common share of Magnum Hunter.
Magnum Hunter is a Texas based public company and its common shares trade on the
NYSE under the symbol "MHR". The Arrangement is subject to approval in court and
by the Company's and Magnum Hunter's shareholders. Upon completion of the
Arrangement, NuLoch will be an indirect wholly owned subsidiary of Magnum.


The pending merger with Magnum Hunter has not changed the business plan for
NuLoch. The 2011 capital budget is a continuation of the record levels of
investment undertaken in 2010 with potential for a program of $80 million.
Capital expenditures totaled $58.1 million in 2010 with more than 90% directed
to the Williston Basin in Saskatchewan and North Dakota. The fourth quarter of
2010 accounted for $20.3 million of the total but was less than originally
expected. While drilling activity remained on-pace with six rigs running, harsh
weather and a shortage of services left 13 wells (3.3 net) awaiting completion
at year-end. The Company was working through the completion inventory during
January and February and seven wells (2.5 net) were fracture stimulated. Six
rigs are currently operational.


NuLoch's most significant asset is its petroleum and natural gas property
located in the Williston Basin. AJM Petroleum Consultants, NuLoch's independent
reserves evaluator, assigned 3.5 Mboe of reserves in Saskatchewan and 4.6 Mboe
in North Dakota (proved plus probable, company working interest) at December 31,
2010. Most of the Company's production and reserves in the Williston are
attributable to the Three Forks Sanish (TFS) formation that lies directly below
the shale of the Lower Bakken formation. Since acquiring its North Dakota
position in 2009, 17 wells (1.4 net) have been completed that have at least 30
days of production history (IP30). The average IP30 is 267 bbls/d of oil. During
the same period, six successful wells (4.5 net) were produced in Canada with an
average IP30 rate of 143 bbls/d of oil.


One notable well result in 2010 (0.2 net well) was from the siltstone of Middle
Bakken Formation (BK) in Burke County. BK production is observed from a number
of locations across our North Dakota acreage. However most of these wells were
completed a number of years ago using inferior techniques. The Gustafson
29-32-161-99 averaged 471 bbls/d of oil from the BK over its first 30 days
(IP30) ranking it among the best results obtained by Nuloch last year. Further
identification of this BK potential is an important objective for 2011. A
considerable portion of our acreage may be prospective in both the TFS and BK.


As in 2010, NuLoch will be focusing its capital activity in the Williston Basin
and, therefore, its non-Williston production, primarily in Alberta, is expected
to decline from 450 boe/d to 350 boe/d by year end. The Company has accumulated
more than a year of operational history since commencing its program in the
Williston Basin. Current productive capability is 600 boe/d in Saskatchewan and
500 boe/d in North Dakota. NuLoch targets a corporate exit rate for 2011 at
2,500 boe/d with over 90% derived from light and medium crude oil. Although
there is always risk that our drilling plans will be adjusted, achieving these
targets is also highly dependent upon the pace of completion activity and
repeatability of results to date.


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.


Use of Estimates in Reserves

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.


Calculation of Finding and Development Costs

Finding costs per boe of reserves added are a rough measure of the average per
unit costs of finding and developing petroleum and natural gas reserves.


The aggregate of the exploration and development costs incurred in the most
recent financial year and the change during that year in estimated future
development costs generally will not reflect total finding and development costs
related to reserve additions for that year.


Non-GAAP Measurement - Funds Flow

Funds flow from operations, calculated as cash flow from operating activities
before changes in non-cash working capital, is used by the Company as a key
measure of performance. Funds flow from operations does not have a standardized
meaning prescribed by Canadian GAAP and therefore may not be comparable with the
calculation of similar measures for other companies. Funds flow from operations
as presented is not intended to represent operating profits for the period, nor
should it be viewed as an alternative to cash provided by operating activities,
net earnings or other measures of financial performance calculated in accordance
with GAAP. Many of the Company's peers in the oil and natural gas industry use
the same definition and, therefore, disclosure herein enhances comparability
with those peers. Funds flow from operations per share is calculated using the
same share bases which are used in the determination of earnings per share.


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