TORONTO, ONTARIO--(Marketwire - May 11, 2012) -
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Candax Energy Inc. ("Candax") (News - Market indicators) reports revenues of $1.9 million for the first quarter of 2012 compared to $nil for the same period in 2011. Please note that Candax has changed its reporting currency to US dollars to align its reporting with the currency most often used in its day to day business. All amounts referred to in this press release are in US dollars. In the first quarter 2012, Candax had negative cash flow from operating activities of $4.4 million, which was greater than the negative cash flow of $3.9 million for the same period in 2011, largely because of a $1.5 million decrease in deferred revenue and $1.6 million of income taxes paid. Candax recorded a loss of $3.5 million ($nil per common share) for the three months ended March 31, 2012, compared to a loss of $5.3 million ($nil per common share) for the same period in 2011.
Candax's net average production for the first quarter of 2012 was 241 bopd, compared to 174 bopd in the same period for 2011. The increase in production is attributable the resumption of production at the Robbana field, the workovers and sidetracks on the Ezzaouia field, which have offset the natural decline of the field as well as the increase in ownership interest through the purchase of PA Resources stakes in El Bibane and Ezzaouia. Candax's current net production is approximately 310 bopd.
As at March 31, 2012, Candax had cash and cash equivalents of $16 million, versus $13.4 million at December 31, 2011. The increase in cash is primarily attributable to the previously announced $11.7 million equity financing completed in February 2012. This increase was offset by a $4 million outflow for the purchase of the PA Resources working interest in El Bibane and Ezzaouia. Candax also had $6 million outstanding under its $10 million shareholder loan with its majority shareholder, Geofinance N.V. Candax's first quarter 2012 Condensed Interim Consolidated Financial Statements and Management's Discussion and Analysis may be viewed under the Candax profile at www.sedar.com.
Benoit Debray, Chairman and CEO stated, "The first quarter was highlighted by the completion of the $11.7 million equity financing as well as progress made on the Robbana work-over. We look forward to continued production improvements as we shift our focus to Ezzaouia and El Bibane."
Candax is an international energy company with its head office in Toronto and an office in Tunis. The Candax group is engaged in exploration and the production of oil and gas in Tunisia and holds an interest in an exploration permit in Madagascar.
This news 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 ability of Candax to continue to service its debt; 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 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 to fund the capital and operating expenses necessary to achieve the business objectives of Candax, 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. 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.