Candax Energy Inc.
TSX : CAX

Candax Energy Inc.

December 21, 2007 11:40 ET

Candax Provides Update for El Bibane Project

TORONTO, ONTARIO--(Marketwire - Dec. 21, 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 second development well on the El Bibane project offshore Tunisia, EBB-5, was successfully drilled to a total depth of 2250 metres. The well has been logged and interpretation indicates that the porosity and hydrocarbon saturations are the best seen in the field to date. The well will be perforated through casing and completed as a gas injection well which will ensure improved recovery of condensate from the gas cap.

The perforation program is expected to be completed over the next few days, following which, the West Titania rig will be mobilized to the third and final well location for a re-entry of the EBB-3 well. The EBB-3 well is a horizontal producer on the southern flank of the field and is expected to start drilling next week.

The installation of the offshore production facilities at the producing EBB-4 location and tie in to the oil and gas pipeline has been delayed by four weeks due to the offshore weather conditions which have been particularly poor in the last month. The offshore platform has been successfully installed and the current operations involve the pipeline hook-up and commissioning. Production start up is now anticipated in early January.

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 an image of the West Titania Drilling at El Bibane, please visit the following link: http://www.ccnmatthews.com/docs/bibaneimage.pdf

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