Candax Energy Inc.
TSX : CAX

Candax Energy Inc.

October 09, 2007 10:30 ET

Candax Provides Operational Update on Tunisian Drilling

TORONTO, ONTARIO--(Marketwire - Oct. 9, 2007) -

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

Candax Energy Inc. ("Candax") (TSX:CAX) is pleased to announce that the first well in the three well development program on the El Bibane oil and gas field, EBB-4, was drilled to a total depth of 2,298 meters on October 3rd and logging was completed on October 4th. The oil/water and the gas/oil contacts in the vertical section of the well are as expected, providing a gross oil column of 25 to 30 metres, and the reservoir quality in the Zeebag dolomite is better than expected. Operations are continuing with the drilling of the 500 metre horizontal production section of the EBB-4 well and upon completion, the production platform will be installed and tied into the oil and gas pipelines. The tie-in will take approximately two weeks and production will then begin to the central processing facility onshore. First production is anticipated to commence in November.

Michael Wood, President and CEO, commented:

"We are very pleased that the results from the EBB4 well comfortably underpin our base case 2P oil and gas reserves for El Bibane. We are fully focused on getting first production on stream and completing the field development program for El Bibane as soon as possible. In addition, planning for the onshore drilling campaign on our Chaal and Ezzaouia projects is progressing well for early 2008, and further announcements on these programs will be made in due course."

To view a photo of the "West Titania rig drilling EBB-4", please visit the link below:

http://www.ccnmatthews.com/docs/westebb.jpg.

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.

To view a photo of the "EEB-4 Production Jacket", please visit the link beolow:

http://www.ccnmatthews.com/docs/ebbprod.jpg.

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)
    Email: jclarke@candax.com
    Website: www.candax.com
    or
    Pro-Edge Consultants Inc.
    Tracy Weslosky or Fred Cowans
    Managing Partners
    1-866-544-9622 or (416) 581-0177
    Email: info@pro-edge.com