Candax Energy Inc.

Candax Energy Inc.

March 25, 2008 08:00 ET

Candax Announces El Bibane Production Start Up

TORONTO, ONTARIO--(Marketwire - March 25, 2008) -


Candax Energy Inc. ("Candax") (TSX:CAX) is pleased to announce the commencement of production from the El Bibane Field offshore Tunisia.

During the week of March 3rd the EBB-5 well was tested and flowed gas and condensate to the onshore Central Processing Facility (CPF) to clean up the well and enable the onshore plant commissioning to be initiated.

The EBB-4 well successfully commenced oil production during the week of March 16th. Oil production rates have been variable due to onshore plant commissioning and weather related delays to the offshore tie-in activities, both of which have necessitated several shut-downs. The peak daily production rate thus far is approximately 1,400 bpd of oil and Candax expects oil production levels to rise considerably over the coming weeks as production from EBB-4 is optimized and the EBB-3 well is tied in and brought on stream. Candax plans to release further production updates once these operations have been completed.

The final well in the El Bibane re-development project, EBB-3, was completed on March 18th and the "West Titania" rig move has been initiated for demobilisation to Malta. The installation of the EBB-3 platform and pipeline hook-ups with the other wells is ongoing. The SEEB power station is also being commissioned and will be ready to commence power generation operations once gas production has been stabilized in April.

Michael Wood, President and Chief Executive Officer, commented:

"We are pleased to have completed the three well drilling program at El Bibane and are encouraged by the initial oil production rates from the EBB-4 well. We are focusing our efforts on completing the EBB-3 platform installation, pipeline hookups and commissioning to optimize the oil production capability of the field in the coming weeks."

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.

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.

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Contact Information

  • Candax Energy Inc.
    John Clarke
    Executive Vice President, Corporate
    (416) 361-2824
    (416) 364-5400 (FAX)
    Email: Website: or
    Pro-Edge Consultants Inc.
    Tracy Weslosky or Fred Cowans
    Managing Partners
    1-866-544-9622 or (416) 581-0177