Brinx Resources Ltd. reports an increase in oil and gas production and discusses plans for 2008.

Brinx Resources Ltd. says that a third well in Mississippi has begun production of oil. The well, acquired in 2006 as part of the 12-well Phase I drill program, was earlier completed as a gas well and began producing gas in mid-October 2007. Small amounts of oil production began two weeks later and by early January the well was producing an average of over 100 mcf/d of natural gas and 80 barrels of oil per day.

This newly producing oil well, the PP-F52, is located 12 miles from the Company's Belmont Lake oil field where two previously completed wells are each flowing an average of 100 barrels of oil per day. At this time the Company cannot project the potential oil reserves or production from this well, which were assigned a valuation of zero in its most recent proved reserves report. Brinx has a 8.5% gross working interest in this well and all other wells under the Phase I agreement.

In the greater Palmetto Point area, Brinx notes that its operator has recently completed a salt-water disposal well, which is beginning to be used to dispose of the water produced along with the gas from some of its gas wells. This new salt-water disposal well will decrease operational expenses and is expected to improve the operational productivity of several existing gas wells. Additional existing nearby gas wells will be connected to this disposal well as quickly as possible, thereby increasing field gas production.

Brinx and its partners and operator currently plan to drill a horizontal development well in mid-2008, to more fully exploit the Belmont Lake oil field. While all details of this well are not yet finalized, Brinx expects this proposed new well to offer the possibility of a substantial increase in oil production and cash flow from the Belmont Lake Oil Field. Under the current planned scenario, this proposed horizontal well has the potential to have a material impact on the Company's operational performance in 2008.

Tags: Brinx Resources Ltd.