Candax Energy Inc.
TSX : CAX

Candax Energy Inc.

April 30, 2008 08:00 ET

Candax Updates El Bibane Development and Production Outlook

TORONTO, ONTARIO--(Marketwire - April 30, 2008) -

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

Candax Energy Inc. ("Candax") (TSX:CAX) is pleased to provide an update on its Tunisian operations for the completion of the El Bibane offshore re-development project and an outlook on the Company's growing production. The El Bibane field (73.8% net ownership by Candax) is currently producing at a steady gross rate of approximately 1,200 bopd and 12 mmcf/d of gas from the EBB4 well only. Approximately 7 mmcf/d of the produced gas is being sold to the SEEB power station (50% net ownership by Candax) which resumed operations and sales of electricity on April 15, 2008 at its maximum rated capacity of 27 MW.

The platform and pipeline installation for EBB3 is continuing, with the jacket installation currently underway. This work has been delayed by more than three weeks because of poor offshore weather conditions, and the Company expects to achieve production from this well in the third week of May. Once EBB3 is on production, Candax will commence operations to initiate gas recycling and fully optimize oil production from the three El Bibane wells. The next equity crude lifting has been sold, and the cargo vessel is scheduled to lift during the last week of May. As oil production continues to increase, crude oil sales (liftings) will also accelerate.

Michael Wood, President & CEO, commented:

"Candax's net oil production will build as EBB3 is brought on stream and with the completion of the new wells and work-overs at the onshore Ezzaouia field. Despite some frustrating delays in completing the El Bibane development, due to continued poor weather offshore Tunisia, Candax is very pleased with the results to date and the current stabilized production rate from EBB4. Candax maintains a strong balance sheet as it moves into the high impact onshore drilling program which was announced in our press release of Monday, April 28."

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 holds a number of concessions in Tunisia through its subsidiary companies and is involved in the exploration and production of oil, gas and power generation in the country. 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.

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