December 5, 2007 - Toronto,
Ontario - Candax Energy Inc. ("Candax") (TSX: CAX) is pleased to announce that it
has increased its credit facility with Bank of Scotland Corporate and has
drawn down US$20 million to date. This draw down represents a relatively
modest proportion of the available debt capacity underpinned by Candax's existing reserves.
The primary purpose of the facility is to provide financial flexibility for
new business development opportunities and for the completion of the El Bibane development project and for other working
capital purposes.
Michael Wood, President and Chief Executive Officer, commented,
"Candax is pleased to be able to expand its
relationship with Bank of Scotland Corporate, one of Europe's leading
international energy banks. Both Candax and Bank of Scotland Corporate are
aligned in the development of Candax as it pursues further growth."
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.