Candax Updates El Bibane Development and Production Outlook
Toronto, Ontario, Canada - 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.
Contact Information Tracy Weslosky or Fred Cowans Managing Partners pro-edge consultants inc. Tel: 416.581.0177 Fax: 416.581.0144 Toll free in North America 1866.544.9622
pro-edge consultants | 80 Richmond Street West, Suite 600 | Toronto | On | M5H 2A4 | Canada
Candax is a exploration company based in Canada.
Candax develops oil in Tunisia.
Its main asset in development is EZZAOUIA in Tunisia.