SOURCE: Brinx Resources Ltd.

July 06, 2006 09:30 ET

Owl Creek Well Flowing Naturally and Begins Selling Oil and Gas

ALBUQUERQUE, NM -- (MARKET WIRE) -- July 6, 2006 -- Brinx Resources Ltd. (OTCBB: BNXR) (the "Company" or "Brinx") is pleased to report that the Powell #2 well at Owl Creek, Oklahoma continues to flow naturally under its own pressure at rates over 200 barrels of oil per day. Also, the well is currently selling between 62,000 and 65,000 cubic feet of natural gas per day.

During its first nine days of production (to July 1, 2006) the Powell #2 well has sold 1547 barrels of oil. Significant amounts of oil exceeding the 1547 barrels were produced during these nine days but not all of it was sold by the end of the month. On June 27th the well was hooked up to a nearby pipeline and started selling natural gas.

Brinx is now actively taking steps to develop the Field at Owl Creek by evaluating the next development location for drilling to start as soon as possible. The next well will be an offset to the Powell #2 and may potentially contain the same lower pay zone as the Powell #2. The Company notes that it may drill up to 24 additional wells at Owl Creek on 40-acre spacing.

"The positive results at the Powell #2 Well are very exciting for our company," says Brinx President Leroy Halterman, "and it appears that Brinx has made a significant new Field discovery with the Owl Creek Project." Halterman also points out that "of particular note is a second hydrocarbon showing in the Powell #2, found in the Viola Formation. This showing is over 50 feet thick, and the logs indicate that it may also be productive. And while completion of this second zone will not take place until sometime in the future, it appears very promising."

The Owl Creek Prospect can now be classified as a new discovery in the Trenton zone of the Viola Formation. The Powell #1 Well -- which was completed and has been producing and selling oil and gas for approximately 6 months -- also has a second potential pay zone -- the Upper Viola -- and will be tested in the future.

The Powell #2 well was drilled to a total depth of 5617 feet on May 18, 2006. Completion began on June 6th and after a remedial cement job the well was re-perforated in the lower zone on June 21st. The well started naturally flowing oil and gas under its own pressure after only a small amount of the load water was removed by swabbing. Initially, the well flowed at a rate of 10 to 15 barrels of fluid per hour (240 to 360 barrels per day) with 80% - 90% being oil and the remainder being load water.

Brinx Resources hold a 50% working interest in the 1100 acres in the Owl Creek Prospect. In addition to the Trenton zone of the Viola, 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 (50% 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:

    250-Media
    1-888-32-BRINX (27469)
    WWW.BRINXRESOURCES.COM

    Brinx Resources Ltd.
    820 Piedra Vista Road NE
    Albuquerque, NM 87123-1954

    Corporate Office:
    505.291.0158
    Fax: 505.291.0158