Candax Energy Inc.

Candax Energy Inc.

June 05, 2007 08:00 ET

Candax Increases Production and Updates El Bibane Rig Mobilization

TORONTO, ONTARIO--(Marketwire - June 5, 2007) -


Candax Energy Inc. (TSX:CAX) ("Candax") is pleased to announce that the work-over program on its onshore Ezzaouia field has been successfully completed, resulting in an increase in stabilized gross field production to approximately 3,000 barrels per day (bpd) from 900 bpd (Candax net equity 31.4%). This increase is significant and compares to Ryder Scott's 2007 forecast gross average production for the field of 1,230 bpd.

Candax's net production of approximately 1,100 bpd represents a doubling of current production from its onshore fields in Tunisia.

The rig mobilization for the offshore El Bibane development is on schedule for drilling to commence at the end of June/early July. As of this morning, the rig is off the coast of Morocco and is expected to enter the Mediterranean shortly.

Mike Wood, CEO, added: "Candax is pleased with the results from the Ezzaouia work-over program. We are looking forward to the commencement of drilling on the El Bibane field and to further significant production increases."

Candax Energy Inc. is an international energy company with its head office in Toronto, Ontario, Canada and management offices in London, Dubai and Tunis. The Company holds a number of concessions in Tunisia through its subsidiary companies and is involved in the exploration and production of oil, gas and power generation in the country. Candax was formed through the combination of a highly experienced executive management team with successful Canadian founders and financiers, to develop an international upstream oil and gas project portfolio. Candax is initially focusing its growth activities on production and development projects in the Middle East and North Africa, where the group has strong relationships as well as extensive management experience.

This press release includes "forward looking statements", within the meaning of applicable securities legislation, which are based on the opinions and estimates of Management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Such risks and uncertainties include, but are not limited to, risks associated with the oil and gas industry (including operational risks in exploration development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections in relation to production, costs and expenses; the uncertainty surrounding the ability of Candax Energy Inc. to obtain all permits, consents or authorizations required for its operations and activities; and health safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the ability of Candax Energy Inc. to fund the capital and operating expenses necessary to achieve the business objectives of Candax Energy Inc., the uncertainty associated with commercial negotiations and negotiating with foreign governments and risks associated with international business activities, as well as those risks described in public disclosure documents filed by Candax Energy Inc. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of Candax Energy Inc. should not place undue reliance on these forward-looking statements. Statements in relation to "reserves" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described can be profitably produced in the future.

Contact Information

  • Candax Energy Inc.
    John Clarke
    Executive Vice President, Corporate
    (416) 361-2824
    (416) 364-5400 (FAX)
    Pro-Edge Consultants Inc.
    Tracy Weslosky or Fred Cowans
    Managing Partners
    1-866-544-9622 or (416) 581-0177