DENVER, CO--(Marketwired - Jan 28, 2014) - Brinx Resources Ltd. (OTCQB: BNXR) ("Brinx Resources" or "Brinx" or the "Company") is pleased to provide this update regarding the status of the ongoing Oklahoma-2013 project and the latest exploration well, OK-13-4.
The OK-13-4 well is the fourth of eight Phase-1 exploration wells expected to be drilled at the ongoing Oklahoma-2013 program. Following an extended period of drilling, evaluation, and completion, the operator has reported that the OK-13-4 well appears to have reached a stabilized production rate of approximately 65 barrels of oil and 17 barrels of water per day. Although there is no commercial volume of natural gas, there is a sufficient amount to run the surface production equipment.
The OK-13-4 well is currently producing oil from the Viola zone. Drilling logs indicate that there are three separate porosity zones of which the middle and lower ones are currently on production. The upper zone remains behind pipe and not perforated at this time.
During the extensive period of evaluation, the OK-13-4 well has generated significant revenue for the partners. Thru December 31, 2013, after approximately 6 weeks of production, the OK-13-4 well generated in excess of $490,000 net of taxes. This large amount of initial revenue has allowed the well to be 26% paid out in a relatively short period of time.
The Oklahoma-2013 operator has indicated that the OK-13-4 location could potentially support 1-2 additional development wells. The Company anticipates that at least one of the additional development wells will be drilled this year, perhaps as early as this summer.
The Oklahoma-2013 project is a multi-phase multi-well oil and gas exploration drill program currently being conducted by Brinx Resources and it partners. Phase-1 of the Oklahoma-2013 drill program consists of 8 wells targeting the first selections from at least 34 high-graded prospects generated by the partnership's proprietary 3D seismic database that covers the entire 83,043 acres or 130 square miles project area. To date, four Phase-1 exploration wells have been drilled resulting in one commercially productive oil well. Drilling at the multi-phase Okalahoma-2013 project is expected to continue through 2014.
Further updates regarding the Oklahoma-2013 project and other Brinx Resource business will be made as additional information becomes available.
About Brinx Resources
Brinx Resources is an expanding exploration company focused on developing onshore North American oil and natural gas reserves. The Company's current focus is on the continued exploration and development of its current land portfolio in Oklahoma, as well as the drilling and production of the new Oklahoma-2013 Project (5% interest). Brinx Resources is seeking to further expand its portfolio to include additional interests in North America and internationally.
Safe Harbor Statement: 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. 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. 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.