Brinx has completed the sale of seven and one-half per cent of future drill sites on the Owl Creek Project located in Garvin and McClain counties, Okla. Brinx Resources retains a 42.5% working interest in future wells to be drilled on the project. The agreement calls for a one-time cash payment of $100,000 to Brinx Resources (received) and for each party to be responsible for their portion of the cost to drill and complete the upcoming Isbill #1 and future drill sites. Brinx retains a 70% working interest owner in its previously drilled Johnson #1 and the Powell #1 wells, and a 50% interest in the Powell #2 well including the spacing units where the wells are located. This sale provides Brinx funds to continue developing its share of the Owl Creek Project.
"We are pleased to bring another capable and well managed partner to the Owl Creek Project, which we feel merits full development and the drilling of ten or more additional wells. Having an additional partner in the program gives us a stronger likelihood of being able to bring this significant asset on-stream," said Leroy Halterman, President.
The next well to be drilled in the Owl Creek Project will be the Isbill #1 that is an offset well to the producing Powell #1 and Powell #2 well. It is anticipated drilling of this well will start later this month.
The Powell #2 well was complete in the lower zone over one and one-half months ago and has been flowing naturally under its own pressure since that time. As of August 7, 2006 a total of 7,783 barrels of oil have been sold thus far from the Powell #2. The Powell #2 is also producing high btu natural gas at a rate of between 40 and 50 mcf per day. Both of the Powell wells have two significant untested hydrocarbon shows. This upper show that has not been tested in either well was over 50 feet thick in the Powell #2 well and was located in the upper Viola.
Additional development well locations for the Owl Creek Project are now being evaluated for possible drilling in October. Brinx has a 42.5% to a 70% working interest in the Owl Creek project and the 1,200 acres leased in the project area.
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, Okla. (42.5% to 70% 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.
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