Candax Energy Inc.
TSX : CAX

Candax Energy Inc.

April 17, 2015 09:16 ET

Candax Energy Inc. Updates on Oil Storage Tank Repair and TSX Delisting Review

TORONTO, ONTARIO--(Marketwired - April 17, 2015) - Candax Energy Inc. ("Candax" or the "Company") (TSX:CAX), an international oil company that is currently focused on mature oil field development in Tunisia, announces that Maretap has completed the full repair of the Zarzis Terminal Tank initiated in October 2014 (see the press release of the Company dated of October 3, 2014, which is available on SEDAR); and that the Toronto Stock Exchange (the "TSX") plans on conducting a delisting review on the Company.

Maretap is a 50/50 joint venture between ETAP (the Tunisian national oil company) and Ecumed (100% owned by Candax). Maretap operates the Ezzaouia Field and the Zarzis Terminal from where all Candax production is exported.

Maretap is now progressing with the maintenance campaign on its beam-pump activated wells on the Ezzaouia field with a pulling unit. EZZ-18 and EZZ-9 wells production has restarted and the pulling unit is currently mobilized on EZZ-1 for one week. The Ezzaouia and Candax net production rate before royalties will revert to 240 and 520 bopd respectively compared to 157 and 447 bopd for the first quarter of the year.

Benoit Debray, Candax CEO declared: "I want to personally thank our field people for their dedication to optimize the production from our field during this difficult period for the entire industry. These efforts are key for moving the company forward through this downturn."

The Company has received a letter advising it that the TSX is reviewing the eligibility for continued listing on the TSX of the securities of the Company. The TSX initiated its delisting review because the price and market value of the publicly-held common shares of the Company have fallen below levels required under the TSX Company Manual and the financial condition and operating results of the Company no longer satisfy the listing requirements of the TSX Company Manual. Under the TSX's remedial review process, the Company has been granted 120 days to comply with all requirements for continued listing.

The Company will study all available options during the 120 days period. In addition to working with the TSX during this period, management will evaluate strategic and financial alternatives to correct the deficiencies noted. There can be no assurance that the Company will be able to achieve compliance with the TSX's listing requirements within the required time frame or will secure a strategic alternative.

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 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 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 its business objectives, 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 continuous disclosure documents filed by Candax and available on SEDAR. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, 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. Candax does not intend to update such forward-looking statements unless required by law.

About Candax

Candax is an international energy company with offices in Toronto and Tunis. The Candax group is engaged in the exploration and production of oil and gas in Tunisia, and holds a royalty interest in an exploration permit in Madagascar.

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