Oklahoma

Three Sands


Brinx Resources Ltd. In 2005 acquired a working interest in the Three Sand Project located in Northern Oklahoma. Brinx has signed an agreement and purchased an undivided 40% working interest in the Three Sand Project which is comprised of 880 acres in Noble County, Oklahoma. Since the projects inception Brinx and Vector Exploration, Inc., the operator and partner for the Three Sands Project has drilled or re-entered a total of five wells which included the Kodesh #1 saltwater disposal well, the Kodesh #2 ,Williams #4-10, KC-80 #1=11, and the Dye Estate #1 oil and gas wells. All of these wells are still producing oil and gas and despite lower oil and gas prices contribute to a positive cash flow from the project. This project holds a minimum of 20 undrilled locations that can be drilled and tested when oil and gas prices have recovered or drilling cost have dropped sufficiently to warrant further drilling. At the present time additional acreage in the project area is being evaluated for possible acquisition to further expand the lease hold position of the project.

Background

The historic Three Sands Field was drilled on 10 acre spacing in the 1920s and 1930s and was very active in producing over 200 million barrels of oil and an unknown amount of gas from a six section (3800 acres) area. However, during this period, most wells were abandoned within twenty years as the wells became commercially unviable due to the lack of technology. In particular, during this period, technology was not available, as it is today, to handle high volumes of water and its subsequent disposal. Nor was it capable of drilling in areas where the tightness of rock limited flow.

Today's technology has changed all this. And, the most recent exploration of the Field (including active production on adjoining and nearby properties) has verified that significant amounts of oil and gas remain in the historic Three Sands Field. The technology of today is now allowing active production in the high water zones. Moreover, with the help of new fracturing techniques, production is also occurring in zones that were not previously produced because of the tightness of the rock. Also, new logs have helped locate these zones re-activating the Field and once again making it commercially viable and profitable.

The Project

Geologically this field is a balded structure in which a combination of structure and erosion has aided in producing the prolific field. Pay zones in the project vary from the Arbuckle to the Pennsylvanian and are productive over a 5000-foot interval that starts at less than one thousand feet from the surface. In a recently drilled test more than two dozen pay zones were encountered (some of which have not been produced) which represent additional untapped reserves. These reserves would have been completed, but were not of interest in the 1920s due to the lack of technology. The same is true for most of the field. The primary target of this project is the prolific Arbuckle, Wilcox and Viola Formations. These were the deep pay zones in first discovered in the field, and in addition to the oil they produced, large amounts of water were eventually produced forcing the abandoned of the well. Today, with down hole electrical high volume pumps and adequate disposal wells the problem has been overcome to create a profitable long-term project. The other pay zones that have been identified add significantly to the project's over payback and lifespan.