Toronto, Ontario, Canada - Candax Energy Inc. ("Candax") announces the completion of a $66 million private placement comprising 82,500,000 subscription receipts. Subscribers to the private placement received subscription receipts for units consisting of one common share and one-half common share purchase warrant exercisable at $1.20 per common share for one year. Of the $66 million, $36 million was sold by a syndicate comprising Canaccord Capital Corporation and Orion Securities Inc. Actis, a UK-based leading private equity investor in emerging markets, participated for $30 million, making Actis a 29% owner of Candax post the financing. Candax intends to file a prospectus in relation to the financing with the applicable securities regulatory authorities in Canada. The subscription receipts will be exchanged for common shares and warrants following the issuance of a receipt from the regulatory authorities for the final prospectus of Candax.
Proceeds from the private placement are being held in escrow pending closing of the acquisition of Centurion Energy International Inc.'s ("Centurion") Tunisian operations for a base price of Cdn$41.2 million plus working capital adjustments. As announced on March 1, 2005, 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 b/d of oil and 4.8 mmscf/d 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 purchase of the Centurion assets is anticipated to close the week of April 18, 2005. The balance of funds from the private placement will be used for exploration and development and general working capital purposes.
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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