Candax Energy Inc.
TSX : CAX

Candax Energy Inc.

August 15, 2011 08:30 ET

Candax Resumes Production From the Robbana Field

TORONTO, ONTARIO--(Marketwire - Aug. 15, 2011) -

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

Candax Energy Inc. ("Candax") (TSX:CAX) is pleased to report that it has resumed production from its Robbana field onshore Tunisia.

As disclosed on March 18, 2011 and March 29, 2011, Candax initiated a workover of the existing Robbana-1 well following very positive results from an independent reservoir study. Pressure data obtained in March during the first phase of the workover were significantly better than expected, indicating very significant volumes of fluids connected to the well of approximately 27 million barrels. The Company then expected to stimulate the well before resuming production, however stimulation was not possible in the current configuration of the well and it was decided to resume production with the existing completion.

Production resumed in early August and the pumping parameters are still being adjusted. The current production of 20 bopd, although low and below the well's theoretical capacity, makes the well economic at the current oil price and is similar to the production experienced before the well was shut-in in 2009.

Candax is now accelerating the design of a full field development plan, which will include the drilling of several wells, the implementation of a waterflooding program and potentially the stimulation of the Robbana-1 well to access the full potential of that well.

Pascal Mirville, COO, stated: "We are pleased by the resumption of the production at the Robbana-1 well and are excited by the untapped potential of the field, with indications that the recoverable volumes may approach 9 million barrels (80% to Candax). We are now dedicating significant resources to the design of the development plan of the field and we expect the first wells to be drilled in the first quarter of 2012, or even earlier depending on rig availability and mobilization."

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.

This news 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 ability of Candax to continue to service its debt; 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 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 to fund the capital and operating expenses necessary to achieve the business objectives of Candax, 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. 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.

Contact Information

  • Candax Energy Inc.
    Charlotte May
    Corporate Secretary
    416 364 3353
    cmay@candax.com

    CHF Investor Relations
    Cathy Hume
    CEO
    416 868 1079 ext. 231
    cathy@chfir.com

    CHF Investor Relations
    Jeanny So
    Director of Operations
    416 868 1079 ext. 225
    jeanny@chfir.com