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 February 4,
2008, Toronto, On, Canada - Candax Energy Inc. ("Candax") [TSX: CAX] announces that the installation of the
offshore production platform at the EBB-4 location and tie in to the oil
and gas export pipeline has been completed, successfully pressure tested
and certified for production operational start up. EBB-4 will not
commence production until completion of the three well program and the
installation of the gas recycling system, which will allow re-compression
of the gas onshore and injection into the system, including gas-lifting
both EBB-4 and EBB-3. A considerable volume of water was lost into the
EBB-4 well during the drilling of the horizontal section, which will need
to be removed from the near-wellbore area by gas-lifting with the
re-compressed gas.
Although continued bad weather during January further delayed project
completion, the installation and tie in of the EBB-5 platform is
progressing. The jacket has been installed offshore and the topsides/deck
is currently being mated and welded to the jacket. Upon completion,
the gas injection line and risers will be installed and commissioned, and
then the well will be tied into the onshore gas compression system. The
West Titania rig is currently drilling the EBB-3 well, the final well in
the program. Upon completion of drilling, the West Titania drilling rig
will be released and the installation of the EBB-3 platform and pipeline
hookups with the other wells will commence. The full field development is
now expected to be completed in March.
Michael Wood, President and Chief Executive Officer, commented:
"Although the delays in project completion due to uncharacteristically
bad weather in this region and the inability of bringing on early
production from EBB-4, due to the water lost while drilling, are frustrating,
Candax is looking forward to the completion of the last of our three well
program and to the release of the West Titania rig. We are working on
the completion of the platform installations and necessary pipeline hookups
and commissioning of the integrated production and gas recycling project
for start up as soon as possible."
Candax also announces that it has drawn down US$29 million, on its credit
facility with Bank of Scotland. Together with the US$20 million draw down
in December 2007, the total of US$49 million is underpinned by Candax's
existing reserves.
The credit facility was established to provide financial flexibility,
substantially for new business development opportunities and also for
support on continued investment activities in Tunisia and for general
working capital purposes.
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
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 lans 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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