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Toronto,
Ontario, Canada - Candax Energy Inc. ("Candax") [TSX: CAX] is pleased to announce the commencement of production
from the El Bibane Field offshore Tunisia.
During the week of March 3rd the
EBB-5 well was tested and flowed gas and condensate to the onshore Central
Processing Facility (CPF) to clean up the well and enable the onshore plant
commissioning to be initiated.
The EBB-4 well successfully commenced oil production during the week of
March 16th. Oil production rates have been variable due to onshore plant
commissioning and weather related delays to the offshore tie-in activities,
both of which have necessitated several shut-downs. The peak daily
production rate thus far is approximately 1,400 bpd of oil and Candax
expects oil production levels to rise considerably over the coming weeks as
production from EBB-4 is optimized and the EBB-3 well is tied in and
brought on stream. Candax plans to release further production updates once
these operations have been completed.
The
final well in the El Bibane re-development project, EBB-3, was completed on
March 18th and the
"West Titania" rig move has been initiated for demobilisation to
Malta. The installation of the EBB-3 platform and pipeline hook-ups
with the other wells is ongoing. The SEEB power station is also being
commissioned and will be ready to commence power generation operations once
gas production has been stabilized in April.
Michael Wood, President and Chief
Executive Officer, commented:
"We are pleased to have
completed the three well drilling program at El Bibane and are encouraged
by the initial oil production rates from the EBB-4 well. We are focusing
our efforts on completing the EBB-3 platform installation, pipeline hookups
and commissioning to optimize the oil production capability of the field in
the coming weeks."
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.
For more information, please
contact:
John Clarke, Executive Vice
President, Corporate
T: 416 361 2824 F: 416 364
5400 E: jclarke@candax.com
Tracy Weslosky or Fred Cowans,
Managing Partners, Pro-Edge Consultants Inc.
T: 866 544 9622 or 416 581
0177 E: info@pro-edge.com
NOTE: To view the
photographs associated with the press release, please click here.
Not for distribution to United
States newswire services or for dissemination in the United States.
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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