Published:
Brinx Resources Completes First 6 of the 10 Well Drilling Program at Palmetto Point
Brinx Resources Ltd. (OTCBB: BNXR) (the
"Company" or "Brinx") is pleased to announce additional gas and oil
discoveries at Palmetto Point, Mississippi that are exceeding the Company's
expectations.
Six wells have been drilled of the current ten-well program. Production
casing has been set on four of these wells -- F-118, F-42, F-40, and F-39.
All four of these Wells encountered zones of natural gas, and two of the
four wells contain oil zones in addition to the natural gas. The results
of the four successful wells to date are as follows:
Well Number Thickness of Thickness of
and Total Depth Natural Gas Pay(s) Oil Pay
F-118 3800 feet 13 feet 3 feet
F-42 3050 feet 6 feet 4 feet
F-40 3892 feet 2 feet 13 feet
F-39 3900 feet 15 feet 4 feet
At present the F-118 and F-42 wells are being hooked up to the natural gas
pipeline, and gas production should begin within three weeks. Connections
to the pipeline should be complete for the F-40 and F-39 soon after.
Potential flow rates will not be known until after connections are complete
and production established, and will be reported at that time. The drill
rig has now moved onto the P-36-2: the seventh well in the 10 well program.
Brinx President Leroy Halterman says that, "Brinx is keenly interested in
our ability to participate in the long-term development of potentially over
eighty wells at Palmetto Point." Halterman added that "the Palmetto project
along with our Oklahoma assets have the potential to deliver significant
value to our Company."
Brinx intends to evaluate the results of the ten-well program, as well as
the technical information being generated through the drill program, and
will determine the extent of its involvement in additional drill programs.
As announced March 8, Brinx has acquired an initial 10% interest in a
10-Well drilling program at Palmetto Point. Targets are primarily but not
exclusively natural gas and the Operator -- Griffin & Griffin Exploration
-- has already shot and analyzed extensive areas of 3D seismic and
identified over 80 drill targets.
Griffin & Griffin Exploration is facilitating all aspects of the program
including drilling, logging, testing, completing and equipping for
production of all ten wells. The prospect wells are located in the Frio
Geological Formation. Frio wells typically enjoy low finding costs and have
a high degree of success. 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 gas targets occur at shallow 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
regressions and 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 pinchout of sands
within shales) also plays a role in most Frio accumulations. The
stratigraphy is so complex that seismic HCL evaluations are the primary
viable exploratory tool for the Frio prospect.
About Brinx Resources
Brinx Resources is an expanding exploration company focused on developing
North American oil and natural gas reserves. The Company's current focus is
on the continued exploration and development of its land portfolio
comprised of working interests in the Owl Creek Project located in McClain
County, Oklahoma (50% interest), the Three Sands Project located 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, 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.
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