Toronto, Ontario, Canada Candax Energy Inc. (Candax) is pleased to announce that it has entered into an agreement with Centurion Energy International Inc. (Centurion) for the purchase of Centurion's current Tunisian operations for a base purchase price of $41.2 million (Canadian funds) plus working capital adjustments effective January 1st, 2005.
Specifically, Candax has agreed to purchase Centurion's ?operated' affiliates Ecumed Petroleum Grombalia Ltd., Ecumed Petroleum Zarzis Ltd., Ecumed Petroleum Tunisia Ltd. and Centurion's 50% interest in the SEEB power plant which represent all of Centurion's current production from the Ezzaouia (31.4% WI), El Bibane (73.8% WI), Robanna (80% WI) and Al Manzah (75% WI) fields approximating 1,200 bopd of oil and 4.8 mmscf per day of natural gas. Centurion will retain the right to participate for up to 50% of Candax's resultant working interest in any Deep Triassic exploration well at either or both of Ezzaouia and El Bibane. Excluded from the sale transaction is Centurion's ownership in the Mellita permit and the accompanying PetroCanada farm-out agreement. The transaction is anticipated to close by April 30th, 2005 subject to certain conditions including financing and the receipt of various third party and government consents.
Michael Wood, Candax's President & CEO said of the acquisition ?It represents an important first step to building Candax's oil and gas portfolio in North Africa, and Tunisia in particular. Candax has strong financial backing, and anticipates that additional similar high quality deals will be announced in the coming months?. Candax Energy Inc. is an independent, privately-owned, international energy company. The Company 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 political and partner relationships as well as extensive management experience.
For further information, please contact:
John Clarke, Executive Vice President, Corporate
Tel: (416)368-9137
Fax: (416)364-5400
Email : jclarke@candax.com
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