The El Bibane field is located approximately 18 kilometres offshore Tunisia in the Gulf of Gabes.

Production from El Bibane commenced in 1998, with cumulative oil production of approximately 3.2 million barrels to date. Estimated net remaining Proven + Probable reserves to Candax are 2.5 MMBbls and 11.4 Bcf of gas.*

The single producing well, EBB-3, has remained shut-in throughout 2006 and 2007 as a result of successive delays to the drilling phase of the planned re-development of the field. During 2007, Candax made significant progress in drilling the three-well re-development, pipeline installation and on and offshore plant installation.

A new drilling contract was awarded in April 2007 to Seadrill for the West Titania rig. With the planned new wells, EBB-4 and EBB-5, and the re-completion of EBB-3, Candax expects production from El Bibane to peak at 3,000 bopd gross (2,200 bopd net). With the renewed availability of gas, the Company will additionally benefit from the re-start of our SEEB power generation operation. The field commenced oil production from one well, EBB-4 in March 2008 and full field production is expected in June 2008.

* Ryder Scott Report 31/12/07