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.
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