Candax Energy Inc.
TSX : CAX

Candax Energy Inc.

January 28, 2014 08:11 ET

Candax Energy Inc. Announces Rescheduling of Debt

TORONTO, ONTARIO--(Marketwired - Jan. 28, 2014) - Candax Energy Inc. ("Candax" or the "Company") (TSX:CAX), a company focused on mature oil field development in Tunisia, announced today that it has come to an agreement to reschedule $2.5 million in debt due January 31, 2014. Details are as follows:

  • Total debt due on January 31, 2014 is $3 million of which $500,000 will be paid at that date;
  • $500,000 will be rescheduled with a new due date of January 31, 2015;
  • $2 million will be rescheduled, due in equal $500,000 instalments on January 31 of each of the next four years commencing January 31, 2015;
  • All of the rescheduled debt is held by the major shareholder of Candax, Geofinance NV.

"We are making progress in improving the production levels at our fields in Tunisia which now stand at 550 bopd, net to Candax," commented Candax CFO Pierre-Henri Boutant. "The continued support of Geofinance to allow us the financial flexibility to continue to focus our finances on investing in improvements in production is key to our continued growth. We thank them for their support."

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 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.

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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