Mississippi

Palmetto Point


Brinx Resources agreed to purchase for cash, a 10% working interest in an initial 10-hole drilling program at Palmetto Point, Mississippi. This was later expanded to include additional exploration and development wells. The targets were primarily but not exclusively natural gas in the Frio Formation. Drill locations are typically identified by 3D seismic and the Company notes that over 80 targets have already been identified. The operator has acquired or shot extensive areas of both 2D and 3D seismic and has a long history of operations in the area. The operator of the drilling program is Griffin & Griffin Exploration, L.L.C., which has drilled, owned or operated more than 100 Frio wells in the region.

The program resulted in a few dry holes but numerous successful natural gas wells were drilled and placed into production some them also have oil bearing zones located behind-the-pipe that have not yet been completed or produced. The last hole in the initial 10 well program, the PP F-12, intercepted over 25 feet of oil bearing sand in what is now know as the Belmont Lake Oil Field. This well was offset by two wells with one of them containing only thin oil bearing sand and the other the PP F-12-3A intercepted approximately the same amount of sand as the PP F-12 contained. Both of these wells were completed as naturally flowing oil wells each producing at rates of over 100 barrels of oil per day. These wells were produced for only a few months when flooding forced the wells to be shut in. Floodwaters have receded and operations took place last year to install equipment so that the wells could be placed back into production and that future flooding of the area should not create a problem with producing the wells.

The Belmont Lake Oil Field has had a reserve report prepared to SEC standards by registered professional engineers. Based upon this study it is estimated that the field originally contains over three-quarters of a million barrels of recoverable oil. Drilling of additional development wells to increase production rates from the field will take place this year.