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Brinx Resources -- Operations Update ALBUQUERQUE, NM--(MARKET WIRE)--Aug 20, 2008 -- Brinx Resources (OTC BB:BNXR.OB - News) (the
"Company" or "Brinx") provides this update on operations,
production, and
oil-field development plans. Field operations have recently commenced in the Belmont Lake Oil Field in Mississippi after interruptions due to the unusually severe flooding of the Mississippi River from January to July 2008. The Company is pleased to report that although production had been intermittently impacted by these adverse weather conditions, Brinx's operator still managed some production at all times during the challenging conditions. Although revenue and cash flows were not maximized from Mississippi, these revenues combined with the revenues from the Owl Creek and the Three Sands projects located in Oklahoma have permitted the company to be profitable for the last three quarters and accumulate cash for future projects. A workover rig is expected to arrive imminently, and will be used to service the two existing Belmont Lake oil wells and will include the installation of down-hole pumps. Oil production is expected to resume within two weeks. The wells had previously flowed only on their natural pressure, with the PPF 12-3 continuing to flow until mid June. The new pumps are expected to increase and stabilize the production rates. The new pumps are powered by compressed natural gas pressure and require no electricity or mechanical power at the well locations, which it is hoped will mitigate future interruptions in production due to seasonal ground water flooding, etc. Detailed plans including future well locations have been assembled and reviewed. Data that will be generated from the production of the two existing wells, as well as drilling data from any future wells to be drilled, will all be used to optimize the development of Belmont Lake. At this point, we expect that between 3 and 12 additional wells could be drilled to fully develop this field. 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 (42.5 to 70% interest); and the Palmetto Point Project in Mississippi (8 to 8.5% interest). Brinx Resources is seeking to expand its portfolio to include additional interests in 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: For More Information Contact:
Brinx Resources Ltd.
Lee Halterman
505.715.6516
ir@brinxresources.com
http://www.brinxresources.com
Source: Brinx Resources Ltd.
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