Candax Energy Inc.

Candax Energy Inc.

November 14, 2011 17:00 ET

Candax Reports Third Quarter 2011 Results

TORONTO, ONTARIO--(Marketwire - Nov. 14, 2011) -


Candax Energy Inc. ("Candax") (TSX:CAX) reports revenues of $nil for the third quarter of 2011 compared to $0.7 million for the same period in 2010.

Although reduced general and administrative expenses and lower interest payments were reflected in the third quarter, Candax had negative cash flow from operating activities of $5.5 million, which amount was consistent with negative cash flow of $5.9 million for the same period in 2010, largely due to changes in the working capital of the Company in the third quarter of 2011, notably as the Company continued to build up its inventory position. Candax recorded a significantly reduced loss of $1.0 million ($0.001 per common share) for the three months ended September 30, 2011, compared to a loss of $12.6 million ($0.03 per common share) for the same period in 2010, as higher operating expenses related to the workover of the El Bibane-3 well and higher general and administrative expenses were recorded in the third quarter of 2010.

Candax's net average production for the third quarter of 2011 was 308 bopd, compared to 160 bopd in the same period for 2010. The increase in production is attributable to the resumption of the production of the El Bibane field in September 2010 and to the workovers and sidetracks on the Ezzaouia field which have more than offset the natural decline of the field. Candax's current net production is approximately 330 bopd.

As at September 30, 2011, Candax had cash and cash equivalents of $3.4 million, a position which was increased on November 10, 2011 by the partial payment of $11.2 million representing 80% of the funds receivable for a lifting that occurred on November 5, 2011, as disclosed in the Company's press release of November 7, 2011 which should provide Candax with a total of $14 million in revenue assuming oil prices remain in the current range until November 20th the last day of pricing. Candax had US$6 million outstanding under its US$10 million shareholder loan with its majority shareholder, Geofinance N.V. Capital expenditures in the second quarter were $0.5 million. Candax's third quarter 2011 Interim Consolidated Financial Statements and Management's Discussion and Analysis may be viewed under the Candax profile at

John Younger, CEO stated: "In the third quarter, Candax made strong headway in continuing to map out development prospects while focusing on costs and is pleased to find itself in a strong liquidity position in this difficult financing environment."

Candax is an international energy company with its head office in Toronto and offices in Tunis and Madagascar. The Candax group is engaged in exploration and the production of oil and gas in Tunisia and holds an interest in an exploration permit in Madagascar.

Contact Information

  • Candax Energy Inc.
    Charlotte May
    Corporate Secretary
    416 364 3353

    CHF Investor Relations
    Cathy Hume
    416 868 1079 ext. 231

    CHF Investor Relations
    Jeanny So
    Director of Operations
    416 868 1079 ext. 225