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TORONTO, ONTARIO--(Marketwire - March 3, 2009) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES.
Candax Energy Inc. (TSX:CAX)
is pleased to provide an update on its activities and programs for 2009. In Tunisia,
production activities both onshore and offshore remain unchanged from
the last guidance provided in the Company's press release of November
14, 2008. The Ezzaouia 18 well was completed
and commenced production testing via a trucking operation on December
30, 2008. The pipeline tie-in of the well into the central facilities
was completed in January and current well production is averaging
approximately 500 bpd, which is in line with expectations.
The near term capital investment in 2009 will be focused to maximize
low cost, near term incremental production. Activity in the first half
of the year is focused on the Ezzaouia field
with two new well side-tracks and a work-over program which has been
approved by partners, with equipment procurement underway and rig
contracts currently being negotiated.
In Madagascar,
the 2D seismic acquisition program was completed on November 27, 2008
on time and under budget. Processing and interpretation is currently
underway, as well as prospect generation and ranking. Initial results
from the geological fieldwork and seismic are very encouraging and
indicate the possibility of a number of very sizable prospects and
leads.
Michael Wood commented: "Candax has
responded rapidly to the changing business environment and weakening
oil prices with the implementation of a cost reduction program in the
last quarter of 2008, and the adoption of a flexible capital program
for 2009. These measures will allow us to remain responsive to further
changes and achieve optimal shareholder returns."
In other news, Candax announces that the Actis nominated director on the board of Candax changed effective January 27, 2009 with the
resignation of Mr. Meb Somani,
who has left Actis and the appointment of Mr.
Murray Grant, who was formerly on the board of Candax
from August 10, 2006 through June 18, 2008. Mr. Grant is a Partner with
Actis who is responsible for managing various
Actis investments in emerging markets. In
addition, John Zaozirny, a director of Candax since May 4, 2005, resigned effective
February 10, 2009, due to his increased responsibilities as Vice Chair
and Lead Independent Director of Pengrowth
Energy Inc. The board wishes to thank Messrs. Somani
and Zaozirny for their contributions and long
term commitment to Candax.
Candax Energy Inc. is an international energy
company with its head office in Toronto
and offices in London, Tunis,
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.
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.
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