Toronto, Ontario, Canada ? Candax Energy Inc. (?Candax?) [TSX: CAX] announces an operations update and progress on the El Bibane oil field re-development project located offshore Tunisia.
Throughout August and September 2006, Candax experienced additional contractor delays to the mobilization of the jack-up drilling barge to drill the three well redevelopment program at El Bibane. During the entire period, Candax engineering staff, assigned to the shipyard on the Adriatic, have been assessing deficiencies and monitoring the contractor?s ability to meet revised timelines. Concurrently, alternate drilling solutions have been sought, but a suitable rig has not been secured due to the current tight rig market. In addition, Candax is evaluating engineering options that might provide the Company with an early production start-up, prior to implementation of the full redevelopment program.
The mobilization of support barges and vessels commenced in mid?September, and the main drilling barge unit is expected to be mobilized to Tunisia in the near future. The various units for the mobile offshore drilling unit (MODU) will be assembled at the Tunisian operations base, and additional components installed prior to receiving the final certification, this includes the top-drive for the rig and bases/feet for the jack-up legs. Candax does not expect the MODU to be at the first drilling location before November and drilling on EBB-4 should be completed by year end. Production start-up from EBB4 will commence shortly thereafter, with full field production anticipated by the end of first quarter 2007.
Michael Wood, President & CEO commented,
?Candax management shares the frustration over the continued delays on the El Bibane redevelopment program with our shareholders. As we have previously reported, the causes for the delays are numerous and, over the last two months, have forced us to reschedule. During this time Candax has not been idle, and has been actively searching the international rig market for suitable and competitive alternatives. We also continue to evaluate engineering options that may provide an earlier production start-up prior to completion of the redevelopment drilling program.
Additionally, Candax is reorganizing management to enhance overall operations competencies and broaden our business development efforts. As part of this reorganization, Keith Howells, President and General Manager, Tunisian Operations, is relocating to Dubai as Vice President, Business Development for Candax, where his past experience will provide additional depth to our business development initiatives. Further announcements regarding this reorganization will be forthcoming in due course. Clearly, the start of oil and gas production from El Bibane remains Candax?s top priority and we are making every effort to resolve the remaining issues as soon as possible.? In other news, Candax will be a participant in the COPIC Energy Conference in Toronto, Ontario on Tuesday, October 3. The Company?s presentation will be made by John Clarke, Executive Vice President, Corporate and is scheduled for 10 ? 10:30 am Toronto time. The presentation will be webcast live by CNW ? www.newswire.ca and can be accessed under ?webcasts?.
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
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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. |