Candax Energy Inc.

Candax Energy Inc.

January 13, 2006 11:01 ET

Candax Energy Signs El Bibane Rig Contract and Announces Mobilization of Rig for Drilling the Chaal Well

TORONTO, ONTARIO--(CCNMatthews - Jan. 13, 2006) -

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Candax Energy Inc. ("Candax") (TSX:CAX) is pleased to announce that it has signed the drilling contract for the El Bibane re-development program offshore Tunisia. As previously announced, this full field re-development is designed to bring on two horizontal production wells with the drilling of a new development well (EBB-4), the re-completion of the existing well (EBB-3) and the installation of gas lift and reserves optimization investments. The contract specifies a January 23, 2006 mobilization date, with the first well expected to spud by mid-February. Candax expects that El Bibane will be back on production by April 2006 and that this investment program should lead to significant increases of both reserves and production levels from the field.

Additionally, Candax also announces that the CTF-06 rig, previously contracted for drilling the Chaal-1 exploration well in Tunisia, has been released and is being mobilized to Chaal. The Chaal-1 well is expected to spud by the first week in February 2006. As previously announced, Candax has mapped a large prospect on the Chaal Permit, which could extend over an area of 300 square kilometers and has multi-Tcf potential.

Michael Wood, President & CEO, said: "We are very pleased to be able to announce the expected spud dates for both our re-development program at El Bibane and exploration drilling on our Chaal Permit. We are looking forward to the potential to add significant value to Candax through the drill bit as we commence this major drilling program."

Candax Energy 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 and 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.

Contact Information

  • Candax Energy Inc.
    John Clarke
    Executive Vice President, Corporate
    (416) 361-2824
    (416) 364-5400 (FAX)
    Pro-Edge Consultants Inc.
    Fred Cowans or Tracy Weslosky
    Managing Partners
    (866) 544-9622 or (416) 581-0177