Candax Energy Inc.

Candax Energy Inc.

September 28, 2005 14:21 ET

Candax Energy Inc.: Actis Capital LLP Board Appointment & Conference Call Highlights

TORONTO, ONTARIO--(CCNMatthews - Sept. 28, 2005) -

Not for distribution to United States newswire services or for dissemination in the United States.

Candax Energy Inc. (TSX:CAX) is pleased to announce the appointment of Ben McKeown, an Investment Principal with Actis Capital LLP, to the Company's Board of Directors. The appointment of an Actis nominee is welcomed by Candax, and was outlined in the Company's prospectus dated August 22, 2005. As the Principal responsible for Actis' oil and gas investments, Mr. McKeown was a key member of the investment and due diligence team that invested $30 million in Candax's initial public offering.

In other news, the Company held an investors information session by conference call on September 27th to respond to questions on the suspension of re-start operations at El Bibane, offshore Tunisia, and to update investors on the Company's upcoming programs. Participating in the call were close to 120 investors and members of the Candax executive team including Michael Wood, President & CEO, John Clarke, Executive Vice President, Corporate, Christopher Hopkins, CFO and David Wilson, Executive Vice President, Technical who joined the call from Tunisia. The Company wishes to thank all the investors who were able to participate in the call. Highlights of the conference call are included below and an audio file of the call has been posted to the Company's website at

- Candax is currently producing 500 b/d of oil from its operations in Tunisia.

- The Company's reserves are not affected by the suspension of re-start operations at El Bibane.

- The Company had planned on shutting down production at El Bibane 3 when it commenced its development program in December 2005. The development program was planned on the El Bibane Field to increase production from El Bibane 3 and to drill an additional production well - El Bibane 5. The Company is currently finalizing rig contracts and the program is scheduled to commence late in the fourth quarter of 2005 with production anticipated in the first quarter of 2006. The Company's interpretation of El Bibane shows that there is no significant faulting that would affect the area to be drained by the new well.

- The Company believes that when the two El Bibane wells are brought on production, they should initially produce between 1,500 and 2,000 b/d of oil on a gross basis (1,125 and 1,500 b/d net) and 6-7 MMcf/d of gas (+/- 5 MMcf/d net). The foregoing production figures are consistent with Ryder-Scott's analysis of the El Bibane Field and the development program.

Finally, as previously announced, following the successful work-over and test of over 400 b/d (300 b/d net) of oil from the Al Manzah field, the Company is intending to bring this field on production before the end of 2005. Procurement of suitable pumping equipment is currently underway.

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.

Certain statements in this News Release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements.

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