Candax Energy Inc.
TSX : CAX

Candax Energy Inc.

August 16, 2007 12:31 ET

Candax Corrects Inaccurate Information and Updates El Bibane Drilling Operation

TORONTO, ONTARIO--(Marketwire - Aug. 16, 2007) -

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

Candax Energy Inc. ("Candax" or the "Company")(TSX:CAX) announces that it has come to the attention of the Company that certain inaccurate information relating to the sale of securities of Candax by insiders of the Company has been disseminated on internet message boards over the past several days. The Company directs interested parties to SEDI (System for Electronic Disclosure by Insiders - www.sedi.ca) for an accurate record of trades of Candax securities by insiders.

Candax wishes to clarify that no such sales have been made by insiders and to confirm that directors and management have been blacked out from trading since June 28, 2007 pending the release of second quarter results and that the blackout remains in place in accordance with the Company's corporate governance policies.

As a brief update on the El Bibane re-development project, the drilling operations at EBB4 are on track with the 30" conductor set and 20" casing cemented to 404 metres. Operations are currently underway to drill the 17 1/2" hole. Candax will provide further operational updates as required.

The Company also wishes to express to investors and other interested parties that internet chat lines are not a reliable source of information on Candax, its management or its operations. Investors should be wary of information posted on message boards as it can be false and misleading.

For accurate information relating to Candax, interested parties should contact Candax directly, contact the Company's external investor relations firm, Pro-Edge Consultants Inc. or view information relating to the Company including official press releases under the profile of the Company on the System for Electronic Document Analysis and Retrieval - SEDAR - www.sedar.com/DisplayProfile.do?lang=EN&issuerType=03&issuerNo=00022440.

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.

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