Brinx Resources and Partners Announce Successful Drilling of First Well at 10,000 Acre King City Project in California
ALBUQUERQUE, N.M., Jan. 24, 2012 /PRNewswire/ — Brinx Resources Ltd. (OTCQB: BNXR) is pleased to report that the Company and its partners have drilled the first discovery well (“SBV-2-32 ) at the King City Project in California.
The SBV-2-32 well was spudded on November 22, 2011 and was drilled to a total depth of 3,468 feet on November 29, 2011. Casing was set and cemented in place to total depth. Two significant intervals showed promise for the production of commercial quantities of hydrocarbons. The first interval of approximately 30 feet with 12 API gravity showed good oil staining on drilling and provided a good log response. The second interval of interest indicated approximately 70 feet of oil pay with 17 – 18 API gravity also with good oil staining during drilling and a very good log response.
“We expect that both sands will be tested within the next 30 days with completion efforts to follow shortly thereafter,” said Leroy Halterman, President of Brinx Resources. “Following a successful completion of this initial well, Brinx and partners expect to drill and test additional wells in the area upon obtaining the required permitting from the County.”
King City Project Background
On May 25, 2009, Brinx entered into a Farm-out agreement with Sunset Exploration to participate in the drilling and exploration of approximately 10,000 acres of land located in Monterey County, California. The King City Project is offsetting a large, historic, and relatively shallow oil and gas field. Brinx agreed to pay 33.33% of all costs to casing point to earn a 20% Working Interest in the initial test well. On all subsequent wells, Brinx has agreed to pay 20% of the costs to earn a 20% Working Interest.
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 land portfolio comprised of working interests in the Three Sands Project in Noble County, Oklahoma (25 to 40% interest), other Oklahoma drilling and production projects (5% interest), a 135 square mile 3-D seismic program in Oklahoma (5% interest), and the King City Project in California (20% interest). Brinx Resources is seeking to further develop its existing projects through development or offset drilling and 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.
SOURCE Brinx Resources Ltd.