 Toronto, Ontario, Canada - Candax Energy Inc. ("Candax") [TSX: CAX] announces that the installation of the offshore production platform at the EBB-4 location and tie in to the oil and gas export pipeline has been completed, successfully pressure tested and certified for production operational start up. EBB-4 will not commence production until completion of the three well program and the installation of the gas recycling system, which will allow re-compression of the gas onshore and injection into the system, including gas-lifting both EBB-4 and EBB-3. A considerable volume of water was lost into the EBB-4 well during the drilling of the horizontal section, which will need to be removed from the near-wellbore area by gas-lifting with the re-compressed gas.
Although continued bad weather during January further delayed project completion, the installation and tie in of the EBB-5 platform is progressing. The jacket has been installed offshore and the topsides/deck is currently being mated and welded to the jacket. Upon completion, the gas injection line and risers will be installed and commissioned, and then the well will be tied into the onshore gas compression system. The West Titania rig is currently drilling the EBB-3 well, the final well in the program. Upon completion of drilling, the West Titania drilling rig will be released and the installation of the EBB-3 platform and pipeline hookups with the other wells will commence. The full field development is now expected to be completed in March.
Michael Wood, President and Chief Executive Officer, commented:
"Although the delays in project completion due to uncharacteristically bad weather in this region and the inability of bringing on early production from EBB-4, due to the water lost while drilling, are frustrating, Candax is looking forward to the completion of the last of our three well program and to the release of the West Titania rig. We are working on the completion of the platform installations and necessary pipeline hookups and commissioning of the integrated production and gas recycling project for start up as soon as possible." Candax also announces that it has drawn down US$29 million, on its credit facility with Bank of Scotland. Together with the US$20 million draw down in December 2007, the total of US$49 million is underpinned by Candax's existing reserves.
The credit facility was established to provide financial flexibility, substantially for new business development opportunities and also for support on continued investment activities in Tunisia and for general working capital purposes.
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
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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. |