Candax Energy Inc.
TSX : CAX

Candax Energy Inc.

November 09, 2006 17:00 ET

Candax Reports Q3 2006 Results and Announces El Bibane Rig Mobilization

TORONTO, ONTARIO--(CCNMatthews - Nov. 9, 2006) -

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

Candax Energy Inc.(TSX:CAX) ("Candax") today reported a third quarter 2006 loss of $2.2 million ($(0.01) per common share) compared to net income of $3 million ($0.04 per common share) in the third quarter of 2005. The loss for the first nine months of 2006 was $1 million ($(0.01) per common share), compared to net income of $2.3 million ($0.06 per common share) for the same period in 2005.

Revenues of $1.9 million were earned from the sale of approximately 25,620 barrels of oil. Production in the third quarter was 47,722 barrels of oil and no production was recorded from the El Bibane field that is being redeveloped. Production in the first nine months totaled 159,150 barrels of oil. Additionally, no revenue was recorded for the Company's share in the idled SEEB power generation facility as it depends on gas from the El Bibane field. Candax maintained a strong working capital position including $56 million in cash and cash equivalents as at September 30th, 2006.

The third quarter Interim Consolidated Financial Statements and Management's Discussion & Analysis may be viewed online at www.sedar.com.

In other news, the Company announces that the main drilling barge to be used for the redevelopment of the El Bibane field sailed early this morning and is expected to arrive in Tunisia by the end of next week. Further updates will be made as available.

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)
    Email: jclarke@candax.com
    Website: www.candax.com
    or
    Pro-Edge Consultants Inc.
    Tracy Weslosky or Fred Cowans
    Managing Partners
    1-866-544-9622 or (416) 581-0177
    Email: info@pro-edge.com