TORONTO, ONTARIO--(Marketwire - Nov. 13, 2012) -
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Candax Energy Inc. ("Candax") (TSX:CAX) reports revenues of $nil for the third quarter of 2012 compared to $nil for the same period in 2011. Please note that Candax has changed its reporting currency to US dollars to align its reporting with the currency most often used in its day to day business. All amounts referred to in this press release are in US dollars. In the third quarter of 2012, Candax had negative cash flow from operating activities of $2.96 million, which was less than the negative cash flow of $4.65 million for the same period in 2011 mainly due to the receipt of farm out fees of $0.5 million for the previously announced sale of a working interest in the Madagascar concession, offset by workover costs on Ezzaouia-2 for $1.4 million, a residual workover payment on Robbana-1 for $0.3 million and interest on a shareholder loan of $0.3 million. Candax recorded a loss of $3.39 million ($nil per common share) for the three months ended September 30, 2012, compared to a loss of $0.97 million ($nil per common share) for the same period in 2011.
Candax's net average production for the third quarter of 2012 was 443 bopd, compared to 281 bopd in the same period for 2011. The increase in production is attributable to the increase of production at the Robbana field, the workovers at the Ezzaouia field, and the increase in production at the El Bibane field due to the testing of the gas cycling project. In addition, net production to Candax has increased due to the increase in ownership interest through the purchase of PA Resources stakes in El Bibane and Ezzaouia. Candax's current net production is approximately 575 bopd.
As at September 30, 2012, Candax had cash and cash equivalents of $6.46 million, versus $13.36 million at December 31, 2011. The solid cash position is primarily attributable to the previously announced $11.7 million equity financing completed in February 2012. Candax also has $6 million outstanding under its $10 million shareholder loan with its majority shareholder, Geofinance N.V. Candax's second quarter 2012 Condensed Interim Consolidated Financial Statements and Management's Discussion and Analysis may be viewed under the Candax profile at www.sedar.com.
Benoit Debray, Chairman and CEO stated, "The third quarter was highlighted by ongoing successful remedial work on the Ezzaouia field as well as progress on the gas cycling testing work on the El Bibane field. We are encouraged by the resultant increase in production on both fields."
In addition, Candax is pleased to announce that Hubert Roudot has been appointed to the board of directors of Candax. Mr. Roudot will replace Thomas Rebilly as the board representative for Candax's major shareholder, Geofinance. In 2003 Mr Roudot joined the Geofinance Group as Corporate Secretary. He is in charge of M&A, Funding/Financings, Legal affairs and of all strategic partnerships. Mr. Roudot has the French equivalent of a master degree in Business (Finance, Legal and Accounting). Between 1989 and 2002 Mr Roudot served as CFO and then as Corporate Secretary of Guy Degrenne, a company listed in France in 1997 after a LMBO. In the course of his career he has conducted various international deals (acquisitions, divestitures, partnerships, LMBO/LBO, IPO) in various countries. In the oil and gas business he has notably managed the divestment of Geoservices, the acquisition of Candax, the related restructuring of its debt, the partnership with IFC and more recently the acquisition of producing fields for Geopetrol in France. He has held various positions of Board member and/or Audit committee member (notably for Geoservices).
Benoit Debray, Chairman and CEO of Candax commented, "On behalf of the board I would like to thank Thomas for his valuable input over the last two and a half years and at the same time welcome Hubert who has already made a strong contribution to the direction of the Candax."
Candax is an international energy company with offices in Toronto and Tunis. 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.