TORONTO, ONTARIO--(Marketwired - Aug. 18, 2015) - Candax Energy Inc. ("Candax" or the "Company") (TSX:CAX), a company with mature oil & gas field developments in Tunisia, announces that the Continued Listings Committee of Toronto Stock Exchange ("TSX") has determined to delist the Company's common shares effective at the close of market on September 17, 2015. The delisting was imposed for failure by the Company to meet the continued listing requirements of TSX.
The Company also announces that the internal bid committee of ETAP decided not to proceed to the next sale of crude oil scheduled for end of September 2015 as no interesting offers were received. Therefore, ETAP will not present any commercial offer to Ecumed and the next lifting will take place for an estimated quantity of 170,000 barrels by end of November 2015.
The cash balance of the Company as at end of August will be circa $0.9 million.
The net Candax share of crude oil in inventory as at end of July 2015, amounts to 66 thousand barrels ("kbbls") (over 117 kbbs available in Maretap Tank storage) which represents an approximate value of $2.8 million at today's Brent prices, rising to 106.5 kbbls net Candax share (197 kbbs available in Maretap Tank storage) by end of October, with a forecasted average monthly net production of 14.5 kbbls (25 kbbls gross production including partners).
Based on current business assumptions, and assuming that oil sales revenues are delayed until December 2015, the company would likely experience a cash shortfall by the end of October 2015. However the Company forecasts a positive cash balance at the end of 2015, once oil sales proceeds have been received.
The Company is actively working on options to pre-finance its crude oil inventory and its future account receivables.
Pierre-Henri Boutant, CFO and Interim CEO of the Company noted that "the delisting comes as a result of the effect of low oil prices which have caused reduced revenues and inadequate working capital. As well, the Company's financial condition, reduced price of its common shares, public float below $2 million are factors cited for the delisting by the TSX. Management will continue to seek for alternative options."
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS
This press release includes "forward looking statements", within the meaning of applicable securities legislation, which are based on the opinions and estimates of management of Candax 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 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 to fund the capital and operating expenses necessary to achieve the business objectives of Candax, 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. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of Candax 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.
About Candax
Candax is an international energy company with offices in Toronto and Tunis. The Candax group is engaged in exploration and the production of oil and gas in Tunisia and holds a royalty interest in an exploration permit in Madagascar.
Contact Information:
info@candax.com