Candax Energy Inc. CAX.TSX ("Candax") today reported a second quarter 2006 loss of Cdn$0.5 million ($0.00 per common share) which compares to a loss of Cdn$0.3 million in the second quarter of 2005. The net profit for the first six months of 2006 was $1.2 million ($0.01 per common share), compared to a loss of $0.3 million ($0.04 loss per common share) for the same period in 2005.
The Company earned revenues of Cdn$1.1 million from the sale of approximately 17,100 barrels during the quarter. Candax net production in the second quarter was 52,576 barrels and 111,426 barrels for the first six months of the year; no production was recorded from the El Bibane field that is being re-developed. Additionally, no revenue was recorded for the Company?s share in the SEEB power generation facility as it requires gas supplied from the El Bibane field. Candax maintained a strong working capital position including Cdn$62million in cash and cash equivalents as at June 30, 2006.
Chris Hopkins, Chief Financial Officer commented,
"Even with less than full production capacity thus far for 2006, the Company exited the first half year with a very strong balance sheet that positions Candax well for its development and growth plans as we move forward." The second quarter Financial Statements and Management Discussion & Analysis may be viewed online at www.sedar.com.
In other news, Candax announces that the Actis nominated director on the board of Candax changed effective August 4, 2006 with the resignation of Mr. Ben McKeown and the appointment of Mr. Murray Grant, a Partner with Actis who is responsible for managing Actis in North Africa and Actis?s London-based team of sector specialists. The board wishes to thank Mr. McKeown for his hard work and his broader contribution to Candax.
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.
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. |