Toronto, Ontario, Canada - Candax Energy Inc. (TSX: CAX) is pleased to announce the completion of the hook-up of EBB-3 the third and final of the three development wells in the El Bibane field offshore Tunisia. The completion and gas lift was delayed, as commissioning of the gas compressors took longer than anticipated. EBB-3 has been on production test since late last week under natural flow. Production is not yet stabilized as the oil production rates are increasing as the well continues to clean up -- the latest oil production from the well is over 1,000 bopd. The oil production also includes significantly higher levels of condensate which has been separately tested at approximately 70 barrels per million cubic feet of gas, which is almost double the ratio anticipated. We are looking forward to providing further announcements on production rates once stabilized production is achieved and full field optimization is underway.
Onshore, the Ezzaouia 17 well has been successfully drilled and is currently being completed. Temporary testing and production equipment to enable fast track production has been mobilized by the operator, to allow the oil to be trucked to the central processing facility. Ezzaouia 17 encountered all of the producing Jurassic zones in the main Ezzaouia field, all of which were interpreted as oil bearing. Net pay of approximately 20 metres was identified, with porosities of about 15% and oil saturations of about 70%, which are similar to previous wells drilled at Ezzaouia.
Michael Wood, CEO, commented:
"The completion of hook-up and commissioning of EBB-3 is an important milestone for Candax and I would like to acknowledge the commitment and effort of the operations team in Tunisia in meeting the many challenges that the El Bibane field development project has presented. The focus of the project team will now be placed on optimizing total field production. Candax will be using the enhanced cash flow from production to add shareholder value as the Corporation places increasing emphasis on its exploration and appraisal activities to develop its project portfolio and reserve base."
Candax Energy Inc. is an international energy company with its head office in Toronto and offices in London, Tunis, Dubai and Madagascar. The Candax group is engaged in exploration and the production of oil and gas and power generation in Tunisia and holds an interest in an exploration permit in Madagascar. 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.
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.
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