Candax Energy Inc.

Candax Energy Inc.

September 13, 2010 08:00 ET

Candax Provides Update on El Bibane Operations

TORONTO, ONTARIO--(Marketwire - Sept. 13, 2010) -


Candax Energy Inc. ("Candax") (TSX:CAX) reports that the work-over of the El Bibane 3 well has been completed. Further to the Company's press release of August 19, 2010 wherein Candax reported that the old tubing was found to be in such a poor condition that complete removal was not possible, a new production string was successfully installed above the fish and the well was put back on production on Friday, September 10 using gas-lift with gas supplied from the El Bibane 5 well. As expected, the El Bibane 3 well is currently cleaning-up, and volumes, pressure and temperature readings indicate that fluids from the reservoir are being produced. Due to losses of sea water to the reservoir during the work-over, and the one-year long shut-in of the El Bibane 3 well, it is not possible to predict when oil production will resume. Candax will issue an update when stable crude production from the well has been restored.

In other news, the work-over of the Ezzaouia 1 well has been completed and production is expected to resume shortly. The rig has now moved to the Ezzaouia 2 well location to perform the planned sidetrack which is expected to take approximately three to four weeks.

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.

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