Candax Energy Inc.
TSX : CAX

Candax Energy Inc.

August 14, 2009 09:12 ET

Candax Reports Second Quarter 2009 Results

TORONTO, ONTARIO--(Marketwire - Aug. 14, 2009) -

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

Candax Energy Inc. ("Candax") (TSX:CAX) reports revenues of $10.4 million for the second quarter 2009 compared to $15.0 million for the same period in 2008. The Company generated positive cash flow from its operating activities of $6.1 million in the second quarter, compared to $23.8 million for the same period in 2008. Candax recorded a loss of $3.1 million (($0.02) per common share) for the three months ended June 30, 2009, compared to net income of $2.8 million ($0.02 per common share) for the same period in 2008, primarily as a result of lower crude oil prices.

Candax's net average production for the second quarter was 1,627 boepd, compared to 1,502 boepd in the same period for 2008. Production was comprised of 1,152 bopd and 2.9 mmcf/d compared to 1,005 bopd and 3.0 mmcf/d in 2008. The increase in oil production is attributable to El Bibane which had resumed production in mid-March 2008 though hook-up and commissioning was not completed until July 2008. Production from Ezzaouia in the second quarter was in line with expectations with contributions from EZZ-17 and EZZ-18 offsetting natural declines from the other producing wells.

As at June 30, 2009, Candax had cash and cash equivalents of $11.5 million and had utilized US$44.4 million of its US$45.0 million credit facility. Capital expenditures in the second quarter were $3.1 million compared to $4.6 million for the same period in 2008.

Candax's second quarter 2009 Interim Consolidated Financial Statements and Management's Discussion and Analysis may be viewed under the Candax profile at www.sedar.com.

The Company will provide an update on production guidance in due course once the intervention work on producing wells in the El Bibane field due to commence in late August has been completed and once the timing for the mobilization of the rig for the Ezzaouia work to execute the sidetrack and workover program has been confirmed. Gas sales have been impacted by the failure of one of the two turbines at the SEEB power plant in May which is not expected to be replaced until later in the third quarter.

Meanwhile the strategic review with Scotia Waterous is continuing and due to the high level of interest and activity and the difficulties that reviewing companies are facing in allocating sufficient resources over the summer holiday period, the proposal submission date has been extended to September 10.

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