October 9, 2007 - Toronto, Ontario, Canada – Candax Energy Inc. (“Candaxâ€) [TSX: CAX] is pleased to
announce that the first well in the three well development program on the
El Bibane oil and gas field, EBB-4, was drilled
to a total depth of 2,298
meters on October 3rd and logging
was completed on October 4th. The oil/water and the gas/oil contacts in the
vertical section of the well are as expected, providing a gross oil column
of 25 to 30 metres,
and the reservoir quality in the Zeebag dolomite
is better than expected. Operations are continuing with the drilling of the
500 metre
horizontal production section of the EBB-4 well and upon completion, the
production platform will be installed and tied into the oil and gas
pipelines. The tie-in will take approximately two weeks and production will
then begin to the central processing facility onshore. First production is
anticipated to commence in November.
Michael Wood, President and CEO, commented:
“We are very pleased that the results from the
EBB4 well comfortably underpin our base case 2P oil and gas reserves for El
Bibane. We are fully focused on getting first
production on stream and completing the field development program for El Bibane as soon as possible. In addition, planning for
the onshore drilling campaign on our Chaal and Ezzaouia projects is progressing well for early 2008,
and further announcements on these programs will be made in due course.â€
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.
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This press release includes
"forward looking statements", within the meaning of applicable
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the business objectives of Candax Energy Inc.,
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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.