Candax Energy Inc.
TSX : CAX

Candax Energy Inc.

March 03, 2009 14:19 ET

Candax Provides Operational Update

TORONTO, ONTARIO--(Marketwire - March 3, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Candax Energy Inc. (TSX:CAX) is pleased to provide an update on its activities and programs for 2009. In Tunisia, production activities both onshore and offshore remain unchanged from the last guidance provided in the Company's press release of November 14, 2008. The Ezzaouia 18 well was completed and commenced production testing via a trucking operation on December 30, 2008. The pipeline tie-in of the well into the central facilities was completed in January and current well production is averaging approximately 500 bpd, which is in line with expectations.

The near term capital investment in 2009 will be focused to maximize low cost, near term incremental production. Activity in the first half of the year is focused on the Ezzaouia field with two new well side-tracks and a work-over program which has been approved by partners, with equipment procurement underway and rig contracts currently being negotiated.

In Madagascar, the 2D seismic acquisition program was completed on November 27, 2008 on time and under budget. Processing and interpretation is currently underway, as well as prospect generation and ranking. Initial results from the geological fieldwork and seismic are very encouraging and indicate the possibility of a number of very sizable prospects and leads.

Michael Wood commented: "Candax has responded rapidly to the changing business environment and weakening oil prices with the implementation of a cost reduction program in the last quarter of 2008, and the adoption of a flexible capital program for 2009. These measures will allow us to remain responsive to further changes and achieve optimal shareholder returns."

In other news, Candax announces that the Actis nominated director on the board of Candax changed effective January 27, 2009 with the resignation of Mr. Meb Somani, who has left Actis and the appointment of Mr. Murray Grant, who was formerly on the board of Candax from August 10, 2006 through June 18, 2008. Mr. Grant is a Partner with Actis who is responsible for managing various Actis investments in emerging markets. In addition, John Zaozirny, a director of Candax since May 4, 2005, resigned effective February 10, 2009, due to his increased responsibilities as Vice Chair and Lead Independent Director of Pengrowth Energy Inc. The board wishes to thank Messrs. Somani and Zaozirny for their contributions and long term commitment to Candax.

Candax Energy Inc. is an international energy company with its head office in Toronto and offices in London, Tunis, and Madagascar. The Candax group is engaged in exploration and the production of oil and gas and power generation in Tunisia and holds an interest in an exploration permit in Madagascar.

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.

Contact Information

  • Candax Energy Inc.
    John Clarke
    Executive Vice President, Corporate
    (416) 361-2824
    (416) 364-5400 (FAX)
    Email: jclarke@candax.com
    Website: www.candax.com
    or
    CHF Investor Relations
    Lindsay Carpenter
    Account Manager
    (416) 868-1079 x. 239
    Email: lindsay@chfir.com