SOURCE: Brinx Resources Ltd.

May 23, 2006 09:30 ET

Brinx Resources Announces Discovery of Two Pay Zones in Natural Gas Well at Palmetto Point, Mississippi

ALBUQUERQUE, NM -- (MARKET WIRE) -- May 23, 2006 -- Brinx Resources Ltd. (OTCBB: BNXR) (the "Company" or "Brinx") is pleased to announce the first of ten Wells to be drilled at Palmetto Point, Mississippi has been completed. The results are positive as the initial core analysis and logs indicate two potentially productive gas zones within the sands of the Frio Formation.

This Well -- the F-40 -- was drilled to a total depth of 3,892 feet and casing was run to total depth. Based on initial core analysis and logs, the well appears to have two Frio Gas zones. The first zone appears from 2,749 feet to 2,751 feet and the second from 3,181 feet to 3,194 feet in depth. The F-40 Well is now awaiting a completion unit.

Also, the Drilling on the second Well at Palmetto Point -- the F-118 -- has commenced. Drill logs and sidewall cores indicate that the F-118 has at least 16 feet of Pay. The drilling rig will then move to the third Well at Palmetto Point -- the #121 -- and drilling should commence there sometime this week.

Brinx has 10% gross working interest in a 10-well drilling program at Palmetto Point. Targets are primarily but not exclusively natural gas and the Operator has already shot and analyzed extensive areas of 3D seismic and identified over 80 drill targets.

The Operator for the Drilling Program at Palmetto Point -- Griffin & Griffin Exploration -- will facilitate all aspects of the program including drilling, logging, testing, completing and equipping for production of all ten wells. Griffin & 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. Griffin has drilled, owned or operated more than 100 Frio wells in the region.

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 only 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 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, 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:

    1-888-32-BRINX (27469)

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