Toronto, Ontario, Canada - Candax Energy Inc. ("Candax") [TSX: CAX] is pleased to confirm that it has signed the final agreement with Mitsubishi Corporation ("Mitsubishi") for the farm-out of a 20% working interest in the Chaal Permit ("Chaal") located onshore Tunisia, as previously announced on October 28th 2005. Candax retains a 60% working interest in Chaal and is the Licence Operator. The terms of the final agreement are consistent with those previously announced by Candax.
Michael Wood, President & CEO, said: "We are very pleased to have completed the terms as outlined in the Heads of Agreement between Mitsubishi and Candax announced October 28th. This short turn around may be attributed to the considerable amount of common ground and potential strategic alignment shared between both companies. We look forward to working closely together on Chaal and other projects."
Candax and its partners also announce an update for the Chaal-1 well in Tunisia. Having contracted the CTF-06 rig for drilling the Chaal-1 well, the timing for commencement is dependent on the release of the rig from its current drilling operations in southern Tunisia. The schedule calls for the Chaal-1 well to spud mid-January 2006.
Candax has mapped a large prospect on the Chaal Permit, which could extend over an area of 300 square kilometers, and has multi-Tcf potential. Two wells were drilled on the structure over 40 years ago and encountered a hydrocarbon column of approximately 150 meters in the Lower Nara, Jurassic formation. Several zones were successfully tested in the column at rates of up to 3 MMcf/d of gas and condensate rates ranging from 25-80 barrels per MMcf.
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 further information, please contact:
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
Not for distribution to United States newswire services or for dissemination in the United States.
Certain statements in this News Release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. |