Toronto, Ontario, Canada - FFurther to the Company's news release of February 20, 2006, Candax Energy Inc. ("Candax") [TSX: CAX] announces a drilling update for its exploration and re-development programs in Tunisia.
The onshore Chaal-1 exploration well, which spud February 4th, is currently below 2,500 metres and drilling ahead to planned total depth of 4,500 metres. The Chaal-1 well is expected to take a total of 50 days to drill and log, and is currently on track for the test program to commence early April.
Simultaneously, Candax announces that it anticipates mobilization of the drilling rig for the re-development of its offshore El-Bibane field to occur early in April. Candax Management are working closely with the contractor regarding the resolution of fabrication delays for the jack-up barge. The current status is that the drilling rig has been installed on the jack-up barge, which is being upgraded in order to strengthen the barge to accommodate the larger rig required for the horizontal drilling program. Candax Management is having regular meetings with the drilling contractor senior management to ensure that the contractor achieves as rapid a completion of the rig upgrade as possible and to ensure final fabrication will meet safety certification requirements.
Michael Wood, President & CEO, commented: "The Candax team is pleased that drilling on our high-impact Chaal-1 well is proceeding according to plan. This multi-Tcf prospect is exposing our investors to very significant upside. We are also pleased that our participation on site with our contractor has provided us with greater confidence that mobilization for El-Bibane should occur early in April."
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.
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.
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 plans 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.
Readers are cautioned that the foregoing lists of risks, uncertainties and other factors are not exhaustive. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements contained in this press release or in any other documents filed with Canadian securities regulatory authorities, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. |