Candax Energy Inc.
TSX : CAX

Candax Energy Inc.

December 24, 2009 08:33 ET

Candax Provides Update

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

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

Candax Energy Inc. ("Candax") (TSX:CAX) is pleased to provide an update on the various strategic and operational matters to shareholders.

Bank of Scotland
The Bank of Scotland ("Bank") has agreed to waive the repayment of loan principal due on January 1, 2010 subject to Candax entering into a revised Facility Agreement with the Bank no later than January 31, 2010 and payment of a waiver fee of US$223,500. The terms of revised Facility Agreement will be announced in due course.

Strategic Process
As previously reported, the Company is undertaking a strategic review process with Scotia Waterous as advisors. The process is ongoing and the Company expects to be able to make an announcement in due course.

Operations
Production for December has averaged approximately 1,140 bopd gross, 420 bopd net (750 boed net). An equity crude tanker lifting of approximately 115,000 bbls was completed on December 21st.

There has been significant progress in planning for the 2010 work programs. On the El Bibane Field, a program to re-connect the production tubing on EBB-3 and re-start production is targeted for late January 2010. This program will also incorporate sophisticated logging on both production wells, EBB-3 and EBB-4, to identify the optimum location for the placement of packers to curtail water production. On the Ezzaouia field, Candax is awaiting confirmation from the operator that the rig inspection has been completed successfully and that the rig mobilization for the Ezzaouia program has commenced. Candax will provide further updates on these programs as they develop.

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.
    Charlotte May
    Corporate Secretary
    416 364 3353
    cmay@candax.com
    or
    CHF Investor Relations
    Jeanny So
    Account Manager
    416 868 1079 ext. 225
    jeanny@chfir.com