Candax Energy Inc.
TSX : CAX

Candax Energy Inc.

August 24, 2009 08:25 ET

Candax Operations Update

TORONTO, ONTARIO--(Marketwire - Aug. 24, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Candax Energy Inc. ("Candax") (TSX:CAX) reports that as a result of an unexpected closure of the down-hole safety valve in the El Bibane 3 well and the subsequent failure to recommence production from the well after the valve was reopened, the Company's operations team in Tunisia has conducted a program of testing to determine the cause of the problem. It has become clear that further tests are necessary that will require wire-line and possibly coiled tubing investigation. These investigations will take place from the jack-up barge that has been contracted by Candax, initially to work-over El Bibane 4 in order to reduce the water production from that well and which will then proceed to El Bibane 3. The barge is scheduled to arrive in the field around August 25 and has been contracted for a minimum 14 days. All production from El Bibane has been shut-in pending, at least, the completion of the intervention on El-Bibane 4. Further information will be provided when the Company has completed its assessment of the results of the work-over program.

Candax Energy Inc. is an international energy company with its head office in Toronto and offices in London, Tunis, and Madagascar. The Candax group is engaged in exploration and the production of oil and gas and power generation in Tunisia and holds an interest in an exploration permit in Madagascar.

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)
    jclarke@candax.com
    or
    CHF Investor Relations
    Lindsay Carpenter
    Account Manager
    416-868-1079 x. 239
    lindsay@chfir.com