Candax Energy Inc.
TSX : CAX

Candax Energy Inc.

October 19, 2010 17:00 ET

Candax Provides Operations Update

TORONTO, ONTARIO--(Marketwire - Oct. 19, 2010) -

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

Candax Energy Inc. ("Candax") (TSX:CAX) is pleased to announce that that the El Bibane-3 well is producing from the newly installed production string. Oil production from the El Bibane-3 well has stabilized at about 130 bopd, with some 95% water-cut, production that is comparable to the overall volume of liquids that the well was producing prior to the well's tubing failure in 2009. The well is currently being gas-lifted with gas from the El Bibane-5 well. Gas-lift is being operated as a closed loop to minimize flaring, with all high-pressure gas being re-circulated.

Richard Norris, President & CEO, stated: "We are very encouraged by the volumes being produced at El Bibane and the evolution of the production parameters. Prior to the tubing failure, the El Bibane-3 well was producing under natural flow and we fully expect that the well will revert to this behaviour. It is, however, very hard to predict exactly when this will occur after more than one year shut-in."

On Ezzaouia, the work-over of the Ezzaouia-1 well has been completed and the well is currently cleaning up. The side-track of the Ezzaouia-2 well has been temporarily suspended due to mechanical difficulties with the rig's pump equipment. Whilst awaiting replacement parts the rig has been moved to the Ezzaouia-11 well location and the planned work-over commenced today. It is planned that operations will subsequently continue with the Ezzaouia-9 work-over then re-commence drilling at Ezzaouia-2 once the rig has been made fully operational. The Company will provide further updates when available.

Candax Energy Inc. is an international energy company with its head office in Toronto and offices in 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, 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
    Charlotte May
    Corporate Secretary
    416 364 3353
    cmay@candax.com
    or
    CHF Investor Relations
    Jeanny So
    Account Manager
    416 868 1079 ext. 225
    jeanny@chfir.com