TORONTO, ONTARIO--(Marketwired - April 3, 2014) - Candax Energy Inc. ("Candax" or the "Company") (TSX:CAX), a company focused on mature oil field development in Tunisia, today announced that its multi-well workover campaign on its Ezzaouia field is complete. In addition, the Company announced that the installation of a higher capacity compressor on its El Bibane field has been fully commissioned.
Highlights of the Ezzaouia workover campaign are as follows:
- The workover campaign, which included wells EZZ-1, EZZ-17, EZZ-2, EZZ-18 and EZZ-9, saw the conversion of the extraction methodology from jet pump to beam pump;
- All wells are producing with the exception of EZZ-9, which will be fitted with a beam pump once equipment arrives in May; and
- Production on the Ezzaouia field is now at approximately 650 bopd and is expected to rise to above 750 bopd once EZZ-9 is brought on line in.
Highlights of the acquisition of the second compressor are as follows:
- The installation, performance test and commissioning of the higher capacity compressor in the El Bibane field has now been completed;
- The performance test included a 24 hour running period at the maximum design rate of 11 mmscf/d.
- As per Company program, the field will now be produced at a rate of 7 mmscf/d gas production with a current CGR of 38 bbls/mmscf, resulting in a production over 260 bopd.
- Pending on monitoring results of the gas cycling pilot, the Company intends increasing the gas production rates from 7 mmscf to 9 mmscf and then to 11 mmscf by the end of the year.
- The compressor has been acquired on a lease-to-own basis.
"The completion of the workover campaign on Ezzaouia and the acquisition of the higher capacity compressor mark important milestones in the development of the producing assets of Candax," commented Jamil Hamza, Deputy General Manager of Ecumed, 100% subsidiary of Candax. "We expect that the cash flow generation from these activities will help fund further development and drilling programs for the company going forward."
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.