Candax Energy Inc.

Candax Energy Inc.

May 29, 2015 13:25 ET

Candax Energy Inc. Announces Reorganization of Its Management Team and Debt Waiver Renewal

TORONTO, ONTARIO--(Marketwired - May 29, 2015) - Candax Energy Inc. ("Candax" or the "Company") (TSX:CAX), a company focused on mature oil field development in Tunisia, today announced the resignation of Benoit Debray from his role of CEO, effective June 30, 2015. Pierre-Henri Boutant, CFO of the Company will act as interim CEO, starting July 1, 2015. After joining Candax as non-executive chairman of the board in June 2010, Mr. Debray has served the company for three years, becoming CEO on January 1, 2012. Mr. Debray has agreed to remain with Candax as non-executive Chairman.

The Company also announces that it has obtained from Geofinance NV, major debtholder and shareholder of the Company, a further extension of one month on the waiver granted on January 29, 2015 up to July 1, 2015 under a facility agreement. Geofinance NV has agreed not to seek any remedy under such facility agreement in respect of the $3.5 million unpaid amount until July 1, 2015, or earlier in specific circumstances. A copy of the amendment and waiver letter will be filed publicly by the Company and available on SEDAR.

"I am proud of what we have accomplished as a team to stabilize the company and its 3 key assets in a challenging period for our industry. I am convinced that Candax Energy will be able to take advantage of its strength to maximise production and associative cash flows," said Mr. Debray.

As previously announced and as the Company undergoes delisting review, the Company will continue its discussions with third parties with the continuing support of its main shareholders to pursue and hopefully, implement strategic and financial alternatives. Pierre-Henri Boutant, acting as CFO and interim CEO will continue to manage all ongoing discussions.

"The Board is committed to pursuing financial and strategic alternatives, and I am pleased to see the support of Geofinance NV with respect to such pursuit. I want to thank Benoit Debray for all the work accomplished as a senior executive of the Company and wish him all the best for the future" said Pierre-Henri Boutant upon Mr. Benoit's notice of resignation.


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; risks associated with delisting review of the Toronto Stock Exchange; 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 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.

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