Toronto, Ontario, Canada - Candax Energy Inc. (?Candax?) [TSX: CAX] is pleased to announce that it has increased production from its onshore oil fields in Tunisia by over 70% with the start up of production from the Al Manzah field, following the successful installation of artificial lift on a single well. Production commenced on December 18th, 2005 and is currently producing at approximately 320 bopd gross (240 bopd net to Candax for its 75% working interest). Daily production rates have been steadily increasing since the start-up of production and are not yet fully stabilized. The Al Manzah field was acquired as a non-producing asset, with no reserves or value attributed to it, as part of the ?Centurion Acquisition? in April 2005. Candax estimates that net recoverable reserves of between 100,000 to 200,000 barrels of oil may be booked at Al Manzah. A new reserves engineering report is currently being commissioned and Al Manzah will be included in the revised reserves of the Corporation.

In addition, Candax also announces that following a successful work-over on its single well at the Robbana field, production has been increased by 75% to 70 bopd (56 bopd net to Candax for its 80% working interest). The result of these new onshore increases, combined with existing production from the Ezzaouia field, is that total net production to Candax has increased approximately 70% to over 700 bopd.

Michael Wood, President & CEO, said: ?We are very pleased to have been able to achieve these increases in production as part of an incrementalization program to maximize the value and reserves recovery from the onshore fields. This program will continue in January 2006, with the commencement of a pilot water-flood secondary recovery program on the Ezzaouia field, which if successful could lead to a full field program being implemented in due course. The hard work undertaken to optimize production and potentially add reserves to our assets reflects Candax?s technical strengths. The stage is now set for additional success, as we move into our re-development program at El Bibane and exploration drilling on our Chaal Permit, which is also slated to commence early in the New Year.?

Candax is also pleased to announce that contract negotiations for the El Bibane re-development program offshore Tunisia are currently being finalized. As previously announced, this full field re-development is designed to bring on two horizontal production wells with the drilling of a new development well (EBB-4), the recompletion of the existing well (EBB-3) and the installation of gas lift and reserves optimization investments. Candax expects that El Bibane will be back in production during Q1 2006 and that this investment program should lead to significant increases of both reserves and production levels from the field. Current expectations call for mobilization in January, with the first well, EBB-4, to spud in early February 2006.

Candax Energy 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 and extensive management experience.

John Clarke, Executive Vice President, Corporate
T: (416)361-2824
F: (416)364-5400
E: jclarke@candax.com

Fred Cowans or Tracy Weslosky, Managing Partners
Pro-Edge Consultants Inc.
T: 866.544.9622 or 416.581.0177
E: info@pro-edge.com