Candax Energy Inc.

Candax Energy Inc.

June 28, 2013 08:00 ET

Candax Energy Inc. Announces Sale of Working Interest in Madagascar Block 1101

TORONTO, ONTARIO--(Marketwired - June 28, 2013) - Candax Energy Inc. ("Candax" or the "Company") (TSX:CAX), announces that its subsidiary, Candax Madagascar Limited ("CML"), has reached an agreement to sell its 10% working interest in Block 1101 in Madagascar to Oyster Oil & Gas Limited ("Oyster"). Candax will continue to retain upside on the Block through a share of future production royalties, as previously announced, as well as certain future payments from Oyster. The transaction is subject to completion of due diligence and Government approval.

Benoit Debray, Chairman and CEO of Candax commented, "We are encouraged by the progress made in developing this world class exploration block and we are pleased to continue to participate in the upside. We look forward to seeing the operator, Afren, and Oyster move forward with the exploration of the block. This transaction is consistent with our strategy to focus our efforts on the development of our encouraging prospects in Tunisia."


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 an interest in an exploration permit in Madagascar.

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