|March 28, 2008 - Toronto, Ontario, Canada - Candax Energy Inc. ("Candax") [TSX: CAX], an international energy company, reports a loss of $9.3 million ($(0.05) per common share) for the year ended December 31, 2007, compared to a loss of $11,000 ($0.00 per common share) for the year ended December 31, 2006. Included in the $9.3 million loss is a $4.9 million expense attributable to foreign exchange, due to the strength of the Canadian dollar which accounted for over 50% of the Company's before tax loss for the year.
Revenues of $12.9 million were earned from the sale of 170,470 barrels of oil. Production for year was 169,670 barrels of oil and, as was the case in 2006, no production was recorded from the El Bibane field. The El Bibane re-development project is currently being finalized following the completion of drilling of all three wells, and the commencement of production from EBB-4 in late March. Consequently, no revenue was recorded for Candax's share in the idled SEEB power generation facility, as its operation depends on gas production from the El Bibane field. As at December 31, 2007, Candax had cash and cash equivalents of $22.2 million.
Mike Wood, CEO, commented:
"Our 2007 results reflect expenses attached to our significant investment program at El Bibane and for the organizational restructuring earlier in the year. With the near term onset of full field production at El Bibane and associated high netback cash flow, Candax is expecting strong results in 2008 and is aggressively pursuing a number of new business ventures as well as further development and exploration drilling commencing in April and through the balance of the year."
Candax has filed its audited financial statements and accompanying notes for the financial year ended December 31, 2007 and related management's discussion and analysis with the Canadian securities regulatory authorities. Copies of all 2007 disclosure documents may be obtained under the profile of Candax at www.sedar.com.
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 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.