Candax Energy Inc.
TSX : CAX

Candax Energy Inc.

April 20, 2007 08:37 ET

Candax Awards Drilling Rig Contract for El Bibane Re-Development Program

TORONTO, ONTARIO--(CCNMatthews - April 20, 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 it has contracted the Seadrill Ltd. ("Seadrill") (OSL:SDRL) for the utilization of the West Titania jack-up rig for the El Bibane re-development program.

The contract with Seadrill will allow Candax to complete the three well, re-development drilling program and will provide flexibility for additional potential exploration and development drilling offshore Tunisia. The West Titania will be dry towed from its current location offshore West Africa using the heavy lift vessel, Gavea Lifter. Mobilization of the heavy lift vessel is already underway, with the West Titania mobilization due to commence the last week in April. Assuming the dry tow commences as expected, Candax expects drilling to start in June.

Seadrill is a Bermuda-based international offshore drilling contractor with main offices in Norway, Singapore and the UK. Seadrill owns and operates a versatile fleet, including harsh-environment semi-submersibles, jack-ups, shallow and deepwater tender rigs and deepwater drillships. Seadrill has some 5,000 skilled and highly competent employees worldwide, operates on four continents, and has more than 30 years' experience from drilling operations in harsh, North Sea environments and from tender rig operations in South-East Asia.

Michael Wood, CEO, commented: "We are delighted to announce the contract award to Seadrill. The company has an excellent reputation and we look forward to delivering production within our stated expectations."

Candax Energy 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 and extensive 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.

Readers are cautioned that the foregoing lists of risks, uncertainties and other factors are not exhaustive. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements contained in this press release or in any other documents filed with Canadian securities regulatory authorities, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

To view a picture of the West Titania Jack-up please go to the following link: http://www.ccnmatthews.com/docs/tatania.pdf

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.
    Fred Cowans or Tracy Weslosky
    Managing Partners
    1-866-544-9622 or (416) 581-0177
    Email: info@pro-edge.com