Candax Energy Inc.

Candax Energy Inc.

September 26, 2005 08:57 ET

Candax Energy Inc.: Re-start Operations Suspended at El Bibane Field, Offshore Tunisia

TORONTO, ONTARIO--(CCNMatthews - Sept. 26, 2005) -

Not for distribution to United States newswire services or for dissemination in the United States.

Candax Energy Inc. (TSX:CAX) announces that the work-over operations to re-start production from the El Bibane field have been unsuccessful. Operations are being suspended and the equipment is being de-mobilized.

El Bibane 3 was temporarily shut-in following an essential maintenance and repair program on the wellhead, as announced by the Company on September 1, 2005. A number of attempts to re-start production from the well have been made using nitrogen lift. Unfortunately due to the high water-cut in the well, natural flow could not be sustained when the nitrogen lift was terminated.

A full field development program had already been planned by Candax to optimize production and recovery of the reserves at El Bibane, and this program will now include reinstating production from El Bibane 3. The plan comprises the drilling of a further development well and the installation of a permanent gas lift capability in both the wells. The implementation of this development program is expected to be initiated late in the 4th quarter of 2005 and, when completed in 1st quarter 2006, will lead to higher levels of oil production, more efficient recovery of reserves and will also enable remote restart of production in the event of a temporary future shut-in of a well.

Candax Executive Management will hold a conference call at 10:00 am ET on Tuesday, September 27th to more fully brief shareholders and answer questions. The conference call will be chaired by President & CEO, Michael Wood. Details of the conference call, including call in numbers, will be distributed later today and will also be made available on the Company's website at

Candax Energy Inc. is an international energy company with its head office in Toronto, Ontario, Canada and management offices in London, Dubai and Tunis. The Company holds a number of concessions in Tunisia through its subsidiary companies and is involved in the exploration and production of oil, gas and power generation in the country. Candax was formed through the combination of a highly experienced executive management team with successful Canadian founders and financiers, to develop an international upstream oil and gas project portfolio. Candax is initially focusing its growth activities on production and development projects in the Middle East and North Africa, where the group has strong relationships as well as extensive management experience.

Certain statements in this News Release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements.

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