Candax Energy Inc.

Candax Energy Inc.

September 02, 2005 17:00 ET

Candax Reports Second Quarter Numbers-First Production Revenue Reported

TORONTO, ONTARIO--(CCNMatthews - Sept. 2, 2005) -

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

Candax Energy Inc. (TSX:CAX) today reported a second quarter loss of Cdn$186 thousand ($0.000 per common share) compared to a loss of Cdn$9 thousand ($0.089 per common share) in the second quarter of 2004. The net loss for the first six months of 2005 was Cdn$706 thousand ($0.000 per common share) which compares to a loss of Cdn$9 thousand ($0.089 per common share) for the same period in 2004.

The second quarter marked the first period that Candax reported the results of operations from its Tunisian assets. On April 26, 2005, Candax completed the purchase of its Tunisian operations for total proceeds of $43.7 million including working capital adjustments from Centurion Energy International Inc. These assets have been producing approximately 1,200 bopd of oil and 4.8 MMscf per day of natural gas. The effective date of the transaction was January 1, 2005 and all economic benefits have accrued to Candax from that date. However, title to the assets did not pass to the Company until April 26, 2005, and all revenues and costs are treated as an adjustment to the purchase price. These quarterly results include the results of the acquired Tunisian operations for May and June 2005. Production in the quarter, while not all included in the operating results of Candax, met target expectations.

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 produces approximately 1,800 boe/d from its subsidiary operations in Tunisia. 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.

Certain statements in this News Release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements.

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