Published:
Brinx Resources Acquires Additional Natural Gas Interest in Palmetto Point, Mississippi; Ten Well Drilling Program to Commence Shortly
Brinx Resources Ltd. (OTC BB: BNXR) (BNXR)
(the "Company") has agreed to purchase for cash, a 10% interest in a new
10-hole drilling program at Palmetto Point, Mississippi. The targets are
primarily but not exclusively natural gas, and the first drilling is
expected to commence during the month of March.
Drill locations are typically identified by 3D seismic and the Company
notes that over 80 targets have already been identified. The operator has
acquired or shot extensive areas of both 2D and 3D seismic and has a long
history of operations in the area. The operator of the drilling program is
Griffin & Griffin Exploration, L.L.C., which has drilled, owned or operated
more than 100 Frio wells in the region.
"Depending upon the success of this ten well program, we are most
interested in our ability to participate in a long-term development project
of potentially over eighty wells at Palmetto Point," said Leroy Halterman,
President of Brinx Resources, who added that "this project has the
potential to deliver significant value to our Company."
Griffin has utilized seismic "bright spot" technology, a technology that
helps to identify gas reservoirs and to delineate the reservoir geometry
and limits. Utilizing these critical factors has improved reserve estimates
and the geologic success ratio.
The drilling program will consist of the drilling, logging, testing,
completing and equipping for production (or if applicable, the plugging and
abandonment) of ten wells. Griffin anticipates drilling to a subsurface
depth equal to such depth as is necessary to penetrate the sands of the
Frio Formation identified as potentially productive of oil and/or gas.
The prospect wells are located in the Frio Geological formation. Frio wells
typically enjoy low finding costs and have a high degree of success. The
gas targets occur at shallower depths, and have minimal completion costs.
The Frio in the area of Southwest Mississippi and North-Central Louisiana
is a very complex series of sand representing marine transgressions and
regression and therefore the presence of varying depositional environments.
Structurally, the Frio gas accumulations are a function of local structure
and/or structural nose formed as a result of differential compaction
features. However, stratigraphic termination (i.e. up dip shales outs of
sands) also plays a role in most Frio accumulations. The stratigraphy is so
complex that seismic HCL evaluations are the only viable exploratory tool
for the Frio prospect.
Brinx expects the acquisition to close within 30 days.
About Brinx Resources
Brinx Resources is an expanding growing exploration company focused on
developing North American oil and natural gas reserves. The Company's
current focus is on the continued exploration of its land portfolio
comprised of working interests in the Three Sand Project in McClain County,
Oklahoma (70% interest), the Owl Creek Project in Noble County, Oklahoma
(40% interest), and its newest interest in its Mississippi Prospect in
Palmetto Point (10% interest). Brinx Resources is seeking to expand its
portfolio to include additional interests North America.
Leroy Halterman C.P.G., R.P.G., LPG, President
The Company has no official gas or oil reserves at this time and may not
have sufficient funding to thoroughly explore, drill or develop its
properties. Statements which are not historical facts are forward-looking
statements. The Company makes forward-looking public statements concerning
its expected future operations, performance and other developments. Such
forward-looking statements are necessarily estimates reflecting the
Company's best judgment based upon current information and involve a number
of risks and uncertainties, and there can be no assurance that other
factors will not affect the accuracy of such forward-looking statements. It
is impossible to identify all such factors but they include and are not
limited to the existence of underground deposits of commercial quantities
of oil and gas; cessation or delays in exploration because of mechanical,
operating, financial or other problems; capital expenditures that are
higher than anticipated; or exploration opportunities being fewer than
currently anticipated. Factors which could cause actual results to differ
materially from those estimated by the Company include, but are not limited
to, government regulation, managing and maintaining growth, the effect of
adverse publicity, litigation, competition and other factors which may be
identified from time to time in the Company's public announcements and
filings.
Brinx Resources, Ltd.
820 Piedra Vista Road NE
Albuquerque, NM 87123-1954
Corporate Office: 505.291.0158
Fax: 505.291.0158
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