Candax Energy Inc.
TSX : CAX

Candax Energy Inc.

August 14, 2008 08:00 ET

Candax Reports Second Quarter Profit

TORONTO, ONTARIO--(Marketwire - Aug. 14, 2008) -

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

Candax Energy Inc.(TSX:CAX) reports a profit of $2.8 million ($0.02 per common share) for the three months ended June 30, 2008, compared to a loss of $4.5 million ($0.03 per common share) for the three months ended June 30, 2007.

Candax's production in the second quarter of 2008 was 1,005 bopd and 3.7 mmcf/d as against 513 bopd in the second quarter of 2007, the increase attributable primarily to the resumption of production from the El Bibane field in March and gas sales to the SEEB power generation facility. Revenues were $14.9 million arising substantially from the sale of 120,577 bbls of equity crude oil exported from Tunisia in May 2008.

Capital expenditures in the second quarter of 2008 were $13.9 million including $12.4 million relating to the El Bibane field development. As at June 30, 2008, Candax had cash and cash equivalents of $31.5 million and had utilized US$44.5 million of its US$50 million borrowing base facility. Candax's second quarter Interim Consolidated Financial Statements and Management's Discussion & Analysis may be viewed online at www.sedar.com.

Michael Wood, CEO, commented:

"Our second quarter financial results are influenced by the progress that Candax has made towards the resumption of full production from El Bibane and the benefit realized from the higher oil prices during this period. The focus of the El Bibane project team remains the optimization of total field production."

Candax Energy Inc. is an international energy company with its head office in Toronto and offices in London, Tunis, Dubai 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. 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.

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