Candax Energy Inc.
TSX : CAX

Candax Energy Inc.

March 31, 2006 20:17 ET

Candax Reports Annual Results and Files Annual Information Form

TORONTO, ONTARIO--(CCNMatthews - March 31, 2006) -

Not for distribution to United States newswire services or for dissemination in the United States.

Candax Energy Inc. ("Candax") (TSX:CAX) today reported revenues for the year ended December 31, 2005 of Cdn$13.9 million and positive cash flow of Cdn$6.5 million from its operations resulting in a year end cash (including short term restricted cash) position Cdn$24.9 million. This financial position, in conjunction with expected operating cash flow will fund an extensive 2006 exploration and development program at Chaal and El Bibane.

Candax generated a pretax profit of Cdn$0.7 million, with an after tax loss of Cdn$1.5 million ($0.02 loss per common share) compared to a loss of Cdn$0.4 million for the period ended December 31, 2004. Although the economic benefits from the Company's Tunisian assets were effective from January 1, 2005, these financial results reflect the benefits of producing assets from April 27, 2005, and thus do not reflect the full year impact of operations.

Michael Wood, President & CEO stated: "2005 was a start-up year for Candax. The Company completed two transactions, both in Tunisia, that has created a portfolio of producing and development assets with considerable exploration upside. 2006 will be a year to start to realize the development potential of these assets both in terms of exploration, but also exploitation which will in turn substantially positively impact our financial performance in 2006. The other challenge for 2006 will be to add new business opportunities and increase to size and scope of our international operations in-line with our business objectives."

Candax has also filed its annual information form, which includes the reserves data and other oil and gas information of Candax for the period ended December 31, 2005 as mandated by National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities of the Canadian Securities Administrators. The Company has also filed its audited financial statements and accompanying notes for the financial year ended December 31, 2005 and related management's discussion and analysis with the Canadian securities regulatory authorities. Copies of these 2005 disclosure documents may be obtained under the profile of Candax at www.sedar.com.

Candax Energy Inc. 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 as well as extensive management experience.

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)
    jclarke@candax.com
    www.candax.com
    or
    Pro-Edge Consultants Inc.
    Fred Cowans or Tracy Weslosky
    Managing Partners
    (866) 544-9622 or (416) 581-0177
    info@pro-edge.com