In addition to the mature producing assets and Chaal appraisal well, Candax is exposed to significant exploration upside through two large Triassic structures below the Ezzaouia and El Bibane fields.

These structures have been mapped using both 2D and 3D seismic at the Triassic level, with the prospective reservoir postulated to be an equivalent TAGI Formation, which is a prolific reservoir in Algeria, Libya and southern Tunisia (Borma field).

The mapped closure on the Ezzaouia prospect covers over 130 square kilometres.  The combined exploration potential of these prospects is very significant, with unrisked estimates of GIIP being greater than 3 Tcf of gas. Candax’s strategy is to drill the onshore Ezzaouia prospect first and then, if successful drill the El Bibane structure. Candax is currently looking for a rig to drill Ezzaouia Deep Triassic and discussions are ongoing with partners and the Tunisian Government regarding potential participation in an exploration well. Work on long lead items has started in anticipation of securing an appropriate rig for drilling early in 2009.