SOURCE: Brinx Resources Ltd.

August 29, 2006 09:00 ET

Brinx Commences Drilling on Isbill #1 - 3 Well

ALBUQUERQUE, NM -- (MARKET WIRE) -- August 29, 2006 -- Brinx Resources Ltd. (OTCBB: BNXR) (the "Company" or "Brinx") is please to announce that it has now started drilling the first of several direct offset wells to the Powell #2 at Owl Creek--the Isbill #1-3. Drilling began on August 24, 2006 and will take approximately 2 to 3 weeks to reach the projected depth of 5,700 feet.

Seismic indicates that the Isbill well should be structurally very similar to the successful Powell #2 well. Potential pay zones include both the current lower producing zone in the Powell #2, as well as having the same potential for additional prospective pay zones including, but not limited to the upper Viola.

At present, the Powell #2 well at Owl Creek continues to flow naturally under its own pressure. The flowing tubing pressure has remained constant over the last month and during its first 62 days of production the Powell #2 well has sold a total of over 10,000 barrels of oil. And, the well is currently selling up to 50,000 cubic feet of natural gas per day.

"The commencement of drilling on the Isbill is very exciting when we consider the current production levels at Powell #2," says Brinx President Leroy Halterman. "The seismic data looks quite similar to the Powell #2 and therefore very favorable for the Isbill. Drilling this first new offset well location," says Halterman, "is another positive step towards developing Brinx's New Field discovery at Owl Creek."

Brinx Resources hold a 70% working interest in the Powell #1, a 50% working interest in the Powell #2 and 42.5% working interest in the Isbill #1 and the 1,200 acres in the Owl Creek Prospect. In addition to the lower zone and the Powell #2 and the Trenton zone of the Viola in the Powell #1, other wells in the immediate vicinity have had oil and gas shows in the upper Viola, Hunton, Hart, Bromides, and Gibson zones. Additional drilling will help further define the project potential in these other pay zones.

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 Three Sand Project in Noble County, Oklahoma (40% interest); the Owl Creek Project in McClain County, Oklahoma (42.5% to 70% interest); and the Palmetto Point Project in Mississippi (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.

Contact Information

  • For More Information Contact:

    Brinx Resources Ltd.
    Jesse Keller
    Investor Relations
    Toll Free: 1-888-33-BRINX (27469)
    International: + 250-491-1786

    Brinx Resources Ltd.
    820 Piedra Vista Road NE
    Albuquerque, NM 87123-1954
    Corporate Office: 505.291.0158
    Fax: 505.291.0158