TUNISIA - Ezzaouia (WI 31.4%)

The Ezzaouia field is located onshore southern Tunisia, approximately 12 kilometres north of the town of Zarzis.

Production commenced in 1990 and the field is operated by Maretap, a joint venture company between Candax and ETAP. Cumulative gross oil production from the field is approximately 29.52 million barrels. Estimated net remaining Proven + Probable reserves are 1.53 MMbbls of oil.

In May 2008, Candax commenced drilling the first of two infill development wells - EZZ-17 followed in August by EZZ-18. Both wells were completed by year-end 2008 with results and production meeting expectations. As of March 2008 both wells were producting at stabilized rates of approximately 500 bopd each. 
Candax is focused on low-cost, near term incremental production and on June 14, 2010, a workover program comprising two sidetracks to existing, but non-producing wells commenced with the goal to materially increase production.  The first sidetrack, EZZ-5ST will target the same Cretaceous Zeebag dolomite zones which were found to contain bypassed oil by EZZ-10ST that was performed in 2007 and which initially produced at approximately 2,500 bopd.  The second tridetrack, EZZ-2ST will target the lower zones of the Jurassic M’Rabtine reservoir in order to investigate potentially unproduced oil zones and to overcome the mechanical problems which led to the shutdown of EZZ-2 in early 2009.  In addition to the two sidetracks, Candax three workovers are being discussed for wells EZZ-1, EZZ-9 and EZZ-11 which could be performed following the two sidetracks that are currently underway.

* Ryder Scott Report 31/12/09