Candax Press Releases

Candax Provides Business and Operational Update

Tue, 16 Mar 2010 13:27:00 -0400

TORONTO, ONTARIO--(Marketwire - March 16, 2010) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Candax Energy Inc. ("Candax" or "the Corporation") (TSX:CAX) is pleased to provide an update on its business activities to investors.

Equipment is being mobilized for a work program on the El Bibane offshore field to re-connect the production tubing on the EBB-3 well and restart production. The program which is scheduled to start in the second half of March is expected to take approximately two weeks. Additionally, a rig contract between Maretap (the Operator of the onshore Tunisian Ezzaouia oil field) and Ulysse Petroleum has been signed. The rig is being mobilized from the USA and is expected to commence a multi-well side-track and work-over program in the Ezzaouia field in May 2010.

In line with the recently announced update for the transaction with Geofinance N.V., Candax and the Bank of Scotland have agreed a waiver extension to March 18, 2010 which is the date when the transaction is expected to close, unless extended by agreement by both parties.

As previously reported in the interim financial statements, the Corporation had made certain provisions for Tunisian back-taxes based on preliminary findings for the period 2004 through 2007. The initial assessment by the Tunisian tax authorities was Tunisian Dinar (TD) 10.7 million. As a result of additional submissions by the Corporation, the Tunisian tax authorities have issued their final tax assessment for approximately TD 1.5 million (US$1.1 million). Candax has made the payment of this amount as full and final settlement on this matter.

Michael Wood, CEO commented: "Candax is continuing to focus its investment on enhancing production and reserves in Tunisia and it is planned that a more extensive program for El Bibane will be implemented later in the year following the current EBB-3 intervention. Candax is also pleased that the long awaited enhancement program for the Ezzaouia field is moving ahead. The anticipated equity investment by Geofinance along with the Bank loan restructuring and the recent settlement of the tax matters referred to above will significantly enhance the financial strength of the Corporation."

Candax Energy Inc. is an international energy company with its head office in Toronto and offices in London, Tunis, 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.

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 fact that there are conditions that still must be satisfied before investment by Geofinance can be completed, risks 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.

FOR FURTHER INFORMATION PLEASE CONTACT:
        Candax
        Charlotte May
        Corporate Secretary
        416 364 3353
        cmay@candax.com

        CHF Investor Relations
        Jeanny So
        Account Manager
        416 868 1079 ext. 225
        jeanny@chfir.com

Source: Candax Energy Inc.

Candax Receives Shareholder Approval in Respect of Private Placement with Geofinance NV

Wed, 10 Mar 2010 20:06:00 -0500

TORONTO, ONTARIO--(Marketwire - March 10, 2010) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Candax Energy Inc. ("Candax") (TSX:CAX) is pleased to announce that it has received the approval, by way of written consent in accordance with Subsection 604(d) of the Company Manual of the Toronto Stock Exchange (the "TSX"), of a majority of its shareholders, in respect of the private placement (the "Transaction") by the Corporation of 144,444,444 units of the Corporation (the "Units") at the price of C$0.09 per Unit to Geofinance N.V. ("Geofinance") pursuant to an investment agreement dated January 29, 2010 between the Corporation and Geofinance, as amended on February 12, 2010 (the "Agreement"). Each Unit will be comprised of one common share of the Corporation ("Common Share") and 0.6 of one common share purchase warrant (each whole warrant a "Warrant"). The Warrants may be exercised for a period of one year from the date of the closing of the Transaction at a price equal to the current market price (calculated on the basis of a five day volume weighted average trading price for the Common Shares on the TSX) on the date of exercise. The Warrants are transferable and contain standard anti-dilution provisions in the event that the Corporation should undertake a share reorganization, a rights offering, a special distribution or a capital reorganization.

The TSX required the Transaction to be approved by a majority of holders of Common Shares, since: (i) the completion of the Transaction will result in a change of control of the Corporation; (ii) and pursuant to the Transaction, the Corporation will issue an aggregate number of Common Shares which is greater than 25% of the currently outstanding number of Common Shares, on a non-diluted basis, at a deemed price per Common Share which is less than the market price (as such term is defined in the TSX Company Manual).

The Transaction is currently scheduled to close on March 18, 2010 (the "Closing"), subject to the satisfaction of certain conditions described in further detail below. Completion of the Transaction is also subject to receipt by the Corporation of all necessary regulatory approvals, including that of the TSX. At Closing, Geofinance will own 144,444,444 Common Shares representing approximately 85% of the number of currently outstanding Common Shares and representing approximately 46% of the number of Common Shares outstanding after giving effect to the Transaction. If all of the Warrants are exercised, and assuming no further issue of securities by the Corporation subsequent to Closing, Geofinance will own 231,111,110 Common Shares representing approximately 137% of the number of currently outstanding Common Shares (on a partially-diluted basis) and representing approximately 58% of the number of Common Shares outstanding after giving effect to the Transaction (on a partially-diluted basis).

The Transaction was negotiated at arm's-length and the completion of the Transaction will materially affect control of the Corporation.

Additional Terms of the Agreement

The Agreement has the support of the board of directors of the Corporation (the "Board"), Actis, a holder of approximately 33.2% of the outstanding Common Shares, and management, who collectively with Actis own approximately 42% of the outstanding Common Shares.

Additional Information About the Transaction

The completion of the Transaction is subject to the satisfaction of a number of conditions including the following: (i) the Corporation having received the final approval of the TSX for the listing of the Common Shares to be issued or reserved for issue pursuant to the Agreement, (ii) the Corporation having entered into a definitive amended and restated agreement with the Bank of Scotland plc (the "Bank of Scotland") relating to certain outstanding indebtedness of the Corporation on terms which are acceptable to Geofinance, and (iii) there having been no material adverse change in the Corporation since the date of the Agreement and other customary conditions for this type of transaction.

The proceeds of the Transaction will be used for capital expenditures in respect of certain of the oil and gas assets of the Corporation and to restructure the costs and other liabilities of the Corporation.

About Geofinance

Overview of Geofinance Group

In 1958, Mr. Gaston Rebilly created Geoservices, a reliable and efficient global provider of geological expertise and studies to its customers. Geoservices provides upstream oilfield services and in fiscal 2009, had 5,000 employees in over 50 countries and a turnover of US$500 million. Geoservices offers high value services during the whole life cycle of an oil or gas reservoir, and specifically, from exploration to development and production. Geoservices is the world leader in 'Mud Logging,' ranked second globally in 'Well Intervention' and is one of the top service providers in 'Field Surveillance'.

In parallel with the development of Geoservices, in 1993, Mr. Gaston Rebilly founded Geopetrol S.A. ("Geopetrol") in order to invest in the French upstream oil and gas business, creating a fully fledged E&P company. Simultaneously, affiliate companies were founded for investment in the same sector with an international focus. Currently, Geopetrol owns and operates mature oil fields in France with a daily production around 900 bopd.

Geofinance was incorporated in 1990 to act as a holding company and is registered in Amsterdam. Currently, Geofinance holds, directly or indirectly, a 38.5% interest in Geoservices and a 99% interest in Geopetrol.

Mr. Thomas Rebilly, Managing Director of Geofinance and Chairman of Geopetrol, has 11 years of experience in the oil and gas sector (specifically, E&P and oil services). Since 1997, he has been working for Geoservices holding various positions, including Base Manager in Russia. Mr. Thomas Rebilly joined Geopetrol in 2006. He is educated as a Geologist (Nice University), holds an engineering degree from the ENSPM (IFP School) and followed a business school program in 2001 at La Sorbonne.

The goal of the Geopetrol group is to become a robust international production entity (with expertise in mature oil fields), coupled with reasonable exposure to development and exploration risks. The Geopetrol group and its qualified management team aim to continuously execute a strategy prioritizing the development of production to maximize shareholder return and asset value.

The Geopetrol group currently has operations and assets in four geographical areas: France, India, Vietnam and Yemen. The existing daily production of the group is around 6,000 bopd from both operated and non-operated assets. Additionally, the Geopetrol group is working towards further developing its international presence by increasing its participating interests and assets in E&P.

This growth strategy was strengthened in mid fiscal 2009 by the creation of a dedicated team of key personnel. Coupled with the support of international experts, this team has conducted a strategic market review where the Corporation was identified as a target with viable potential assets in attractive countries.

Geofinance, with the support of holders of Common Shares, intends to focus on current production issues including as a first step, the restoration of past levels of production and subsequently on new developments (organically or through selective acquisitions) to build a balanced portfolio of mature cash flow positive assets associated with some "development plays". At the same time, Geofinance expects to conduct a review of strategic objectives with respect to exploration assets. To support these initiatives, Geofinance expects to initiate a restructuring plan in order to materialize the requisite conditions for the next steps of development. This plan includes, but is not limited to, changes to management, cost restructuring and potentially, portfolio rationalization.

Geofinance will fund the proposed investment in the Corporation from its cash/capital reserves held on its balance sheet.

Biographies

The Agreement provides for the resignation of Mr. Michael Wood as President, CEO and director of the Corporation at Closing. Dr. Richard Norris, who is currently employed by an affiliate of Geofinance, will be appointed President and CEO of the Corporation at Closing. Geofinance and the Corporation have also agreed to nominate Mr. Matthieu Milandri as the new CFO and Mr. Bertrand Launois as the new COO of the Corporation.

Under the Agreement, Geofinance will have the right to nominate two of the six directors to the Board from time to time and Mr. Thomas Rebilly and Dr. Richard Norris will initially be the nominees of Geofinance to the Board. Under the Agreement, Geofinance and the Corporation also agreed to appoint Mr. Stephen Drinkwater as a director to the Board.

Dr. Richard Norris

Dr. Richard Norris has most recently been General Operations Manager for Geopetrol, overseeing operated and non-operated assets in four countries. His professional career started with Elf Aquitaine (subsequently Total) covering upstream operations, reserves, new ventures and economic strategy over a ten year period in France and Angola. Four years in Angola were spent on deep-water exploration, appraisal and development of Block 17 as well as production management on Block 3. This upstream experience has been complemented by seven years of experience at BNP Paribas in Oil and Gas Project Finance (Reserves Based Lending).

Dr. Richard Norris holds a BSc in Geology as well as an MSc in Petroleum Geology and a PhD in Petroleum Engineering (Imperial College, London, funded by BP (previously called British Petroleum)). Dr. Richard Norris is an active member of the Society of Petroleum Engineers and has co-authored several papers on Reservoir Characterization, Geostatistics as well as Multi-phase Flow-Metering.

Matthieu Milandri

Mr. Matthieu Milandri has been Business Development and Financing Manager at Geopetrol since May of 2009. In this position, he has spearheaded the due diligence process related to the investment in the Corporation and has thereby gained an in-depth knowledge of Candax.

Prior to joining Geopetrol, Mr. Matthieu Milandri spent ten years with BNP Paribas in five different geographical locations (Frankfurt, Paris, New York, Houston and Geneva) in the oil and gas or commodities groups, providing him with a detailed understanding of junior oil and gas companies across the world. Notably, Mr. Milandri spent three years in Houston in the group responsible for Reserves Based Lending for North and South American junior upstream companies. Between 2008 and May, 2009, he worked for BNP Paribas in Geneva as a relationship manager covering oil and gas companies in Eastern Europe and the Former Soviet Union. In such position, he structured and negotiated corporate and reserve-based loans as well as currency, interest rate and crude oil hedging transactions.

Mr. Milandri graduated from ESSEC Business School in 1998 with a degree equivalent to an MBA with a specialization in finance.

Bertrand Launois

Mr. Bertrand Launois has been the General Manager of Geopetrol since 1993. He has significant experience on mature fields which require a specific and reasonable approach in order to maintain and/or develop the reservoirs. Mr. Launois has conducted an efficient strategy based on cash flow optimization and high level of return for shareholders. Prior to joining Geopetrol, he spent 30 years in the well logging and geothermal sector holding various positions, including management positions, with different companies.

Thomas Rebilly

Mr. Thomas Rebilly, Managing Director of Geofinance and Chairman of Geopetrol, has 11 years of experience in the oil and gas sector (specifically, E&P and oil services). Since 1997, he has been working for Geoservices (oilfield services) holding various positions, including Base Manager in Russia. Mr. Rebilly joined Geopetrol in 2006 as Chairman. He is educated as a geologist (Nice University), holds an engineering degree from the ENSPM (Ecole Nationale Superieure du Petrole - Institut Francais du Petrole) and followed a business school program in 2001 at La Sorbonne.

Stephen Drinkwater

Mr. Stephen Drinkwater has a broad range of upstream well operations experience gained over a 30 year period in Africa, Europe, the Middle East, and both North and South America while working for both service and operating oil & gas companies. His roles have ranged from Base Manager with Flopetrol Limited Schlumberger, where Mr. Drinkwater more than doubled operating revenues, to global Service Line Manager and later Business Development Manager for Well Intervention services with Geoservices, where he contributed significantly to the rapid expansion of his business segment. Technical roles have included Well Service Supervisor with BP Exploration Colombia in Colombia and Well Service Superintendent with Total Argentina in Argentina. Mr. Drinkwater also gained valuable skills in contract negotiation and management with BP Exploration Colombia. Mr. Drinkwater is a member of the Society of Petroleum Engineers and the Canadian Society of Safety Engineering, and currently operates a cost reduction consultancy for ERA Canada in Vancouver, Canada.

Proposed New Board of the Corporation


Mr. Adrian Loader as Chairman;
Dr. Richard Norris, (also CEO);
Mr. Thomas Rebilly;
Mr. Murray Grant;
Mr. Chris Irwin; and
Mr. Stephen Drinkwater.

Messrs Loader, Grant and Irwin are currently directors of the Corporation. With the new organization and management team of the Corporation, Geofinance is confident that the strategic objectives can be achieved (in the interests of all holders of Common Shares) in a reasonable time frame.

Geofinance Upstream Assets

France

Geopetrol commenced operations in France in 1993 on oil fields. It owns 100% of the producing assets, and thereby, is the operator. Geopetrol produces oil from four different areas within France: Paris Basin, Alsace, Champagne and the Aquitaine Basin. Despite aging fields, Geopetrol is actively engaged in a cost-efficient management of each mature field, using appropriate and modern technology. Its strategy focuses mainly on the existing producing assets investing well-balanced capex, commensurate with the age of fields. Thus, Geopetrol sustains a low declining profile of its production with economic success. It is expected that redevelopment wells will be drilled on two fields having undeveloped potential. In addition to its production, Geopetrol holds exploration acreage in France (approximately 1,400 km(2)) under various stages of advancement, including a geothermal exploration block. The exploration portfolio is diversified and scaled to the Geopetrol size. Net production for Geopetrol from the France assets is currently 900 bopd.

Vietnam

Geopetrol is one of the partners in Block 15-1 located in the Cuu Long basin, offshore Southeast Vietnam, operated by Cuu Long Joint Operating Company. Four hydrocarbon fields (three oil and one gas and condensate) were discovered in the block, and accumulations are contained in reservoirs including Fractured Basement, Lower Miocene and Oligocene Sands.

The first oil discovery, Su Tu Den, was made in August 2000 and first oil was achieved in October 2003. The north east part of the field is currently being developed with first oil expected in mid-2010.

The second oil discovery, Su Tu Vang, was made in October 2001 and first oil was achieved in October 2008.

The third discovery, Su Tu Trang, a gas and condensate accumulation, was made in November 2003. The field is being appraised and a long production test is programmed and is expected to produce its first gas in 2012.

The next oil discovery, Su Tu Nau, was made in September 2005 and is currently being appraised with first oil tentatively scheduled for 2014.

As of January, 2010, approximately 180 MMstb of oil has been recovered from Block 15-1. Average oil production in 2009 was over 100,000 bopd and is expected to be substantially similar in 2010.

India

Geopetrol commenced operations in India in 1995 through its ownership and 50% participation in a joint venture with GeoEnpro Petroleum Limited. GeoEnpro operates the Kharsang held in the Assam in the Northeast of India. The field currently produces 2200 bopd as a result of a successful 14-well development program conducted in 2008 and 2009 that included drilling and workovers. This field contains significant exploration potential and current plans are to drill an exploration well in 2010.

Yemen

Geopetrol is currently participating in four onshore exploration blocks. All four blocks are located within known and productive basins, three in the Masila Basin, and one in the Marib AI Jawf Basin.

The Masila Basin Blocks (Blocks 33, 45 and 47) cover a total of 22,453 km(2), and the Marib Al Jawf Basin Block (Block 41) covers a total area of 5600 km(2). In addition, within each block there are multiple productive horizons and targets and active exploration programs are underway in each block. There was a commercial discovery in 2008 on Block 47 and ongoing appraisal work has included the acquisition of 3D seismic data which commenced in 2009 and an appraisal well is expected to be drilled in 2010. Significant additional structures and plays have been identified on this block. Block 41 also has a discovery well, but additional work is required. In addition, Blocks 33 and 45 have exciting exploration potential.

About Candax Energy Inc.

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, the risk that the conditions precedent (some of which are beyond the control of the parties) for completion of the transaction with Geofinance will not be satisfied or waived, 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.

FOR FURTHER INFORMATION PLEASE CONTACT:
        Geofinance NV
        Hubert Roudot
        +33 1 70 61 76 50

        Simmons & Co International Ltd.
        (financial advisor to Geofinance NV)
        Bob Gray, Principal
        + 44 (0) 20 7053 1000

        Geofinance was advised by McCarthy Tetrault LLP
        (Robert Brant, + 44 (0) 20 7489 5700)
        as Canadian legal counsel
        and McGrigors LLP
        (Paul Sutton, + 44 (0) 7054 2500)
        as English legal counsel

        Candax
        Charlotte May
        Corporate Secretary
        416 364 3353
        cmay@candax.com

        CHF Investor Relations
        Jeanny So
        Account Manager
        416 868 1079 ext. 225
        jeanny@chfir.com

Source: Candax Energy Inc.

Candax Receives Credit Approval from Bank of Scotland

Tue, 02 Mar 2010 18:22:00 -0500

TORONTO, ONTARIO--(Marketwire - March 2, 2010) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Candax Energy Inc. ("Candax") (TSX:CAX) is pleased to confirm that credit approval has been received from the Bank of Scotland to the terms of a substantial restructuring of the US$45 million loan facility subject to completion of documentation and closing of the previously announced investment agreement with Geofinance NV. In the meantime, the waiver has been extended to March 15, 2010. The investment transaction announced on February 1, 2010 is proceeding on schedule subject to receipt by Candax of the required number of shareholder consent forms (as discussed below). Further details on the credit approval will be provided upon closure of the facility amendment and investment agreements in due course.

Geofinance N.V. Investment

The Company wishes to advise shareholders who have not voted in favour of the investment by Geofinance N.V. in securities of the Company as outlined in Candax's press release of February 1, 2010 (the "Transaction"), by returning an executed shareholder consent form with respect thereto, to please contact Candax's Information Officer for the Transaction, Laurel Hill Advisory Services at 1 877 304 0211 or collect 416 637 4614 or assistance@laurelhillag.com to discuss the Form of Consent. The Transaction has the unanimous support of the board of directors of Candax, Actis LLP and management of Candax, who collectively own approximately 42% of the outstanding common shares of Candax. In order to obtain the approval of the Toronto Stock Exchange for the Transaction, the Company must receive executed consent forms from shareholders which collectively hold at least 50% of the number of outstanding common shares of Candax. The Company encourages shareholders to vote their shares in favour of the Transaction.

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, the risk that the conditions precedent (some of which are beyond the control of the parties) for completion of the transaction with Geofinance will not be satisfied or waived, 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.

FOR FURTHER INFORMATION PLEASE CONTACT:
        Candax Energy Inc.Charlotte May
        Corporate Secretary
        416 364 3353
        cmay@candax.com

        CHF Investor Relations
        Jeanny So
        Account Manager
        416 868 1079 ext. 225
        jeanny@chfir.com

Source: Candax Energy Inc.

Candax Enters Into Investment Agreement With Geofinance NV

Mon, 01 Feb 2010 08:02:00 -0500

TORONTO, ONTARIO--(Marketwire - Feb. 1, 2010) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Candax Energy Inc. ("Candax") (TSX:CAX) announces that the Company has entered into an investment agreement (the "Agreement") with Geofinance NV, an international upstream oil and gas company ("Geofinance"). Under the terms of the Agreement, Geofinance will invest (the "Transaction") C$13,000,000 in Candax to purchase 144,444,444 units of Candax (the "Units") at a price of C$0.09 per Unit, each Unit comprising one common share and 0.6 of one common share purchase warrant (each whole warrant a "Warrant"). The Warrants may be exercised for a period of one year from the date of the closing of the Transaction at a price equal to the current market price (calculated on the basis of a five day volume weighted average trading price for the common shares of Candax) on the date of exercise. At closing, Geofinance will own 144,444,444 common shares of Candax representing approximately 46% of the issued and outstanding shares. If all of the Warrants are exercised, Geofinance will own 231,111,110 common shares in aggregate representing approximately 58% of the issued and outstanding common shares of Candax. The Transaction is scheduled to close in March 2010 (the "Closing"), subject to the satisfaction of certain conditions described in further detail below. Completion of the Transaction is also subject to receipt by Candax of all necessary regulatory approvals, including that of the Toronto Stock Exchange.

The Agreement has the unanimous support of the board of directors of Candax and Actis LLP and management, who collectively own approximately 42% of the outstanding common shares of Candax, also support the Transaction. Candax intends to obtain shareholder approval for the Agreement by written consent and has engaged Laurel Hill Advisory Group to solicit support (see below).

The Agreement also provides for the resignation of Michael Wood as President and CEO and as a director at Closing. Richard Norris, who is currently employed by an affiliate of Geofinance, will be appointed as CEO on Closing. In addition, there will be other changes to the senior management team and board of directors at Closing.

Adrian Loader, Chairman of Candax, stated:

"We are pleased with this strategic investment by Geofinance. This transaction not only brings some significant new equity funding to Candax but also provides a strong technically experienced shareholder. The investment by Geofinance will provide Candax with the funding to undertake the remedial work on the El Bibane field and this combined with the Bank of Scotland facility restructuring that is currently being negotiated, provides Candax with a significantly enhanced capital base and balance sheet.

The board of directors would like to take this opportunity to thank Michael Wood for his enthusiastic leadership since the founding of Candax and his contributions to both the board and the management of Candax, often during some challenging operational and economic events. Michael has been one of the major contributors bringing this important and strategic investment to a successful conclusion and I am pleased that he has agreed to provide some ongoing advice and support to Candax after Closing."

Geofinance NV is an international upstream oil and gas company that produces approximately 5,900 bpd of crude oil. Geofinance and its affiliates have operations in France, Vietnam and India and they also own stakes in four exploration blocks in Yemen. Geofinance also owns 38.5% of Geoservices, a large oilfield services company with annual sales in excess of US$500 million. Geofinance and its affiliates (not including Geoservices) employ approximately 60 people.

Thomas Rebilly, Director of Geofinance NV and Chairman of Geopetrol SA, a subsidiary of Geofinance which owns the producing assets in France, commented about the investment of Geofinance in Candax stating:

"Providing there is positive shareholder support, we believe that Geofinance's investment and technical assistance should enable Candax to implement the necessary measures to resolve the current production problems in Tunisia, which in conjunction with a broader re-structuring of Candax and tight cost controls will help to build a stronger business base with enhanced cash flows, reduced debt and thus unlock value for its shareholders. The key short term focus will be to fix the production issues and in the medium term, Candax should be able to resume its growth."

Candax also reports that the restructuring of the Bank of Scotland loan facility, which was announced in a press release of the Company on December 24, 2009, continues to be progressed and the waiver previously obtained has been extended through to February 28, 2010.

Summary of Additional Terms of the Transaction

The completion of the Transaction is subject to the satisfaction of a number of conditions including the following: (i) conditional approval of the TSX to the listing of the common shares to be issued or reserved for issuance pursuant to the Agreement, (ii) the Company shall have entered into an amended and restated agreement with the Bank of Scotland on terms acceptable to Geofinance, (iii) there having been no material adverse change in the Company since the date of the Agreement and other customary conditions for this type of transaction.

Under the terms of the Agreement, Geofinance will have the right to nominate two of the six directors to the board of directors of the Company from time to time and will initially nominate Thomas Rebilly and Richard Norris.

Candax has also agreed not to solicit competing proposals but has the right to accept an unsolicited Superior Proposal (as defined in the Agreement) if the board considers such action necessary to avoid breaching its fiduciary duty to act in the best interests of the Company. If the board accepts such a Superior Proposal it must immediately pay Geofinance C$6,000,000.

Laurel Hill Advisory Group

Shareholders wishing to vote in favour of the Agreement are directed to contact Laurel Hill Advisory Group at 1 877 304 0211 or collect 416 637 4614 or assistance@laurelhillag.com to sign the form of consent.

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, the risk that the conditions precedent (some of which are beyond the control of the parties) for completion of the transaction with Geofinance will not be satisfied or waived, 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.

FOR FURTHER INFORMATION PLEASE CONTACT:
        Geofinance NV
        Hubert Roudot
        +33 1 70 61 76 50

        Simmons & Co International Ltd.
        (financial advisor to Geofinance NV)
        Bob Gray, Principal
        + 44 (0) 20 7053 1000

        Geofinance was advised by McCarthy Tetrault LLP
        (Robert Brant, + 44 (0) 20 7489 5700)
        as Canadian legal counsel
        and McGrigors LLP
        (Paul Sutton, + 44 (0) 7054 2500)
        as English legal counsel

        Candax
        Charlotte May
        Corporate Secretary
        416 364 3353
        cmay@candax.com

        CHF Investor Relations
        Jeanny So
        Account Manager
        416 868 1079 ext. 225
        jeanny@chfir.com

Source: Candax Energy Inc.

Candax Provides Update

Thu, 24 Dec 2009 08:33:00 -0500

TORONTO, ONTARIO--(Marketwire - Dec. 24, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Candax Energy Inc. ("Candax") (TSX:CAX) is pleased to provide an update on the various strategic and operational matters to shareholders.

Bank of Scotland

The Bank of Scotland ("Bank") has agreed to waive the repayment of loan principal due on January 1, 2010 subject to Candax entering into a revised Facility Agreement with the Bank no later than January 31, 2010 and payment of a waiver fee of US$223,500. The terms of revised Facility Agreement will be announced in due course.

Strategic Process

As previously reported, the Company is undertaking a strategic review process with Scotia Waterous as advisors. The process is ongoing and the Company expects to be able to make an announcement in due course.

Operations

Production for December has averaged approximately 1,140 bopd gross, 420 bopd net (750 boed net). An equity crude tanker lifting of approximately 115,000 bbls was completed on December 21st.

There has been significant progress in planning for the 2010 work programs. On the El Bibane Field, a program to re-connect the production tubing on EBB-3 and re-start production is targeted for late January 2010. This program will also incorporate sophisticated logging on both production wells, EBB-3 and EBB-4, to identify the optimum location for the placement of packers to curtail water production. On the Ezzaouia field, Candax is awaiting confirmation from the operator that the rig inspection has been completed successfully and that the rig mobilization for the Ezzaouia program has commenced. Candax will provide further updates on these programs as they develop.

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.

FOR FURTHER INFORMATION PLEASE CONTACT:
        Candax Energy Inc.Charlotte May
        Corporate Secretary
        416 364 3353
        cmay@candax.com

        CHF Investor Relations
        Jeanny So
        Account Manager
        416 868 1079 ext. 225
        jeanny@chfir.com

Source: Candax Energy Inc.

Candax Reports Third Quarter 2009 Results

Fri, 13 Nov 2009 09:14:00 -0500

TORONTO, ONTARIO--(Marketwire - Nov. 13, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Candax Energy Inc. ("Candax") (TSX:CAX) reports revenues of $2.2 million for the third quarter 2009 compared to $13.9 million for the same period in 2008. The Company generated negative cash flow from its operating activities of $3.7 million in the third quarter, compared to positive cash flow of $6.4 million for the same period in 2008. Candax recorded a loss of $3.7 million (($0.02) per common share) for the three months ended September 30, 2009, compared to net income of $1.6 million ($0.01 per common share) for the same period in 2008, as a result of lower sales and crude oil prices.

Candax's net average production for the third quarter was 782 boepd, compared to 1,451 boepd in the same period for 2008. Production was comprised of 582 bopd and 1.2 mmcf/d compared to 1,126 bopd and 2.0 mmcf/d in 2008. The reduction in oil production is attributable to reduced production from the El Bibane Field as discussed below under Operations.

As at September 30, 2009, Candax had cash and cash equivalents of $4.7 million and had utilized US$44.4 million of its US$45.0 million credit facility. Capital expenditures in the third quarter were $1.0 million compared to $11.3 million for the same period in 2008.

Candax's third quarter 2009 Interim Consolidated Financial Statements and Management's Discussion and Analysis may be viewed under the Candax profile at www.sedar.com.

Operations and Corporate Update

Operations

Further to the Company's press release of September 21 which reported the results of the work-over of the El Bibane 4 well (EBB-4) and the failure of the production tubing in well El Bibane 3 (EBB-3), a comprehensive remedial work program has been developed and is being prepared by the technical team in conjunction with service company experts. The program will involve a two stage work-over of the two wells with the first stage consisting of repair of the failed tubing in EBB-3 together with the acquisition of a comprehensive set of logs for both wells. This will allow resumption of production from EBB-3 and will provide data to enable detailed planning of the second stage which will consist of the setting of swellable packers in both wells to reduce the level of water production such that both wells can be produced simultaneously. The schedule for the work-overs is driven by equipment availability with the first stage currently planned for January 2010 and the second stage planned for early in the second quarter 2010.

A successful two stage work-over will bring the El Bibane field production back to the previously reported 2P volumes. In the interim the Company will continue gas lift operations on the EBB-4 well and is producing approximately 250 bopd and 3 mmscf/d of gas which is being delivered to the SEEB plant. Candax's next equity crude oil lifting is expected to amount of over 100,000 bbls (net to Candax) and is scheduled and contracted for mid-December.

On the Ezzaouia Field, the drilling of the two sidetracks, EZZ-2 and EZZ-5, has been delayed as a result of problems securing a suitable drilling rig by the operator. A suitable drilling rig has now been secured and drilling is expected to be completed during the first quarter of 2010, this program is intended to enhance the levels of production from the Ezzaouia field.

Corporate Update

Candax's Q3 2009 results have been prepared on a going concern basis. The continued appropriateness of this basis of accounting is dependent upon the Company achieving a number of important steps in restructuring the Company's balance sheet, which include reaching agreement with its lending bank and securing additional sources of finance through a combination of the issue of new equity and/or debt instruments. There is a risk that the various negotiations may not be completed on either a timely basis or on acceptable terms. The Company's directors and management are addressing this issue and anticipate that financing options will be available to enable the Company to continue to operate as a going concern.

As reported in press releases of June 23 and August 14, the Company is undertaking a strategic review process with Scotia Waterous as advisors. The process is ongoing and the Company expects to be able to make an announcement in due course.

The Company has previously given guidance for 2009 forecast average net oil production in the range of approximately 1,700 to 2,100 bopd and net sales of natural gas to SEEB of approximately 4.7 mmcf/d (2,400 to 2,900 boe/d). Updated full year guidance for 2009 is for average net oil production of approximately 822 bopd and net sales of natural gas to SEEB of approximately 2.8 mmcf/d (460 boe/d). The revisions reflect lower levels of production from El Bibane. Candax's revised production guidance assumes that oil production will continue to produce in EBB-4 through gas lift. Current gross production at Ezzaouia of approximately 1,000 bopd (275 bopd net) is forecast to remain constant for the remainder of the year as the planned work-over and sidetrack program has been delayed from the second quarter of this year to the first quarter 2010 due to rig availability issues.

Other News

In other news, the Company reports that John Clarke resigned his position of Executive Vice President, Corporate at the end of October to pursue other business interests. The Company will not be hiring a replacement for Mr. Clarke as his responsibilities have been re-allocated amongst other members of the Candax executive team.

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.

FOR FURTHER INFORMATION PLEASE CONTACT:
        CHF Investor Relations
        Lindsay Carpenter
        Account Manager
        416.868.1079 x. 239
        lindsay@chfir.comwww.candax.com

Source: Candax Energy Inc.

Candax Operations Update

Mon, 21 Sep 2009 09:09:00 -0400

TORONTO, ONTARIO--(Marketwire - Sept. 21, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Candax Energy Inc. ("Candax") (TSX:CAX) reports that the work-over intended to reduce water production from the El Bibane 4 (EBB-4) well has been completed. In addition, a down-hole investigation into the production cessation that occurred at El Bibane 3 (EBB-3) has also been completed and the barge, coiled tubing unit and other related equipment have been de-mobilized.

The objective of the EBB-4 work-over was to substantially reduce the level of water production from the well. However, flow testing over the last five days has demonstrated that water production has not been reduced and that the work-over was not successful. The investigation on the EBB-3 well has determined that a failure in the production tubing near the top of the well is the cause for the loss of production. The technical team is putting together remedial work programs for both EBB-4 and EBB-3 wells and the scope and timing of these programs will be disclosed in due course.

As a short-term interim measure, Candax is continuing the gas lift operations on the EBB-4 well using gas from the EBB-5 well on a 1/4" choke. The Company is producing limited volumes of condensate and gas from the field at approximately 250 bopd and 7.5 mmcf/d respectively and the gas is being supplied to the SEEB power plant. This is an interim measure pending review of the logs and other aspects of the production performance, which will be kept under close review. These measures may be subject to further change pending additional reservoir management assessment and the timing and scope to implement the remedial work plan referred to above.

Although the mechanical problems identified in both the EBB-3 and EBB-4 wells are significantly affecting the Company's oil production in the short term, the Company does not believe that the problems have any material impact on previously reported estimates of the remaining reserves in El Bibane.

Candax currently has approximately US$4 million of cash reserves but, as disclosed in the Company's second quarter Financial Statements, there continue to be concerns relating to the Corporation's liquidity and working capital position and thus going concern issues, as previously reported, continue to be relevant. The Company is continuing to work closely with its professional advisors and with its bankers to develop the best forward strategy to address these matters.

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.

FOR FURTHER INFORMATION PLEASE CONTACT:
        Candax Energy Inc.John Clarke
        Executive Vice President, Corporate
        416.361.2824
        Fax: 416.364.5400 (FAX)
        jclarke@candax.com

        CHF Investor Relations
        Lindsay Carpenter
        Account Manager
        416.868.1079 x. 239
        lindsay@chfir.com

Source: Candax Energy Inc.

Candax Operations Update

Mon, 24 Aug 2009 08:25:00 -0400

TORONTO, ONTARIO--(Marketwire - Aug. 24, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Candax Energy Inc. ("Candax") (TSX:CAX) reports that as a result of an unexpected closure of the down-hole safety valve in the El Bibane 3 well and the subsequent failure to recommence production from the well after the valve was reopened, the Company's operations team in Tunisia has conducted a program of testing to determine the cause of the problem. It has become clear that further tests are necessary that will require wire-line and possibly coiled tubing investigation. These investigations will take place from the jack-up barge that has been contracted by Candax, initially to work-over El Bibane 4 in order to reduce the water production from that well and which will then proceed to El Bibane 3. The barge is scheduled to arrive in the field around August 25 and has been contracted for a minimum 14 days. All production from El Bibane has been shut-in pending, at least, the completion of the intervention on El-Bibane 4. Further information will be provided when the Company has completed its assessment of the results of the work-over program.

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.

FOR FURTHER INFORMATION PLEASE CONTACT:
        Candax Energy Inc.John Clarke
        Executive Vice President, Corporate
        416-361-2824
        Fax: 416-364-5400 (FAX)
        jclarke@candax.com

        CHF Investor Relations
        Lindsay Carpenter
        Account Manager
        416-868-1079 x. 239
        lindsay@chfir.com

Source: Candax Energy Inc.

Candax Reports Second Quarter 2009 Results

Fri, 14 Aug 2009 09:12:00 -0400

TORONTO, ONTARIO--(Marketwire - Aug. 14, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Candax Energy Inc. ("Candax") (TSX:CAX) reports revenues of $10.4 million for the second quarter 2009 compared to $15.0 million for the same period in 2008. The Company generated positive cash flow from its operating activities of $6.1 million in the second quarter, compared to $23.8 million for the same period in 2008. Candax recorded a loss of $3.1 million (($0.02) per common share) for the three months ended June 30, 2009, compared to net income of $2.8 million ($0.02 per common share) for the same period in 2008, primarily as a result of lower crude oil prices.

Candax's net average production for the second quarter was 1,627 boepd, compared to 1,502 boepd in the same period for 2008. Production was comprised of 1,152 bopd and 2.9 mmcf/d compared to 1,005 bopd and 3.0 mmcf/d in 2008. The increase in oil production is attributable to El Bibane which had resumed production in mid-March 2008 though hook-up and commissioning was not completed until July 2008. Production from Ezzaouia in the second quarter was in line with expectations with contributions from EZZ-17 and EZZ-18 offsetting natural declines from the other producing wells.

As at June 30, 2009, Candax had cash and cash equivalents of $11.5 million and had utilized US$44.4 million of its US$45.0 million credit facility. Capital expenditures in the second quarter were $3.1 million compared to $4.6 million for the same period in 2008.

Candax's second quarter 2009 Interim Consolidated Financial Statements and Management's Discussion and Analysis may be viewed under the Candax profile at www.sedar.com.

The Company will provide an update on production guidance in due course once the intervention work on producing wells in the El Bibane field due to commence in late August has been completed and once the timing for the mobilization of the rig for the Ezzaouia work to execute the sidetrack and workover program has been confirmed. Gas sales have been impacted by the failure of one of the two turbines at the SEEB power plant in May which is not expected to be replaced until later in the third quarter.

Meanwhile the strategic review with Scotia Waterous is continuing and due to the high level of interest and activity and the difficulties that reviewing companies are facing in allocating sufficient resources over the summer holiday period, the proposal submission date has been extended to September 10.

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.

FOR FURTHER INFORMATION PLEASE CONTACT:
        Candax Energy Inc.John Clarke
        Executive Vice President, Corporate
        416.361.2824
        Fax: 416.364.5400 (FAX)
        jclarke@candax.com

        CHF Investor Relations
        Lindsay Carpenter
        Account Manager
        416.868.1079 x. 239
        lindsay@chfir.com

Source: Candax Energy Inc.

Candax Engages Scotia Waterous

Tue, 23 Jun 2009 09:00:00 -0400

TORONTO, ONTARIO--(Marketwire - June 23, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Candax Energy Inc. ("Candax") (TSX:CAX) announced today that it has engaged Scotia Waterous to assist the Company in unlocking the undervalued potential of the Company's shares by examining a range of strategic alternatives, including equity investments and/or various corporate transactions.

The continuing global recession, uncertainty in the capital markets and particularly the lack of liquidity in the junior oil and gas sector of the TSX market has resulted in a share price which is significantly below the underlying net asset value. This is constraining the Company's access to new debt and equity to fully fund the development of its assets in Tunisia and Madagascar, to realize the significant upside in the portfolio and to capitalise on Management's strong relationships in the region. As highlighted in the 2008 Annual Report, the Company has been considering potential business combinations or other transactions which could enhance shareholder value.

Candax is also pleased to announce that it has reached an agreement with Bank of Scotland to waive the June re-determination. Candax will make a voluntary pre-payment in June and a further re-determination will take place as scheduled in December 2009. The capital program for this year includes the two Ezzaouia sidetracks and a workover on El Bibane. Production net to Candax is currently approximately 1,800 boepd.

Michael Wood commented: "Preparations are well underway to undertake Candax's important program of sidetracks and workovers which should result in a considerable boost to the Company's net production in the second half of 2009. The amended terms of the loan facility with Bank of Scotland will enable the Company to complete this program in 2009 with additional flexibility. At the same time we welcome the assistance of specialist oil and gas investment bank, Scotia Waterous, in advising Candax on a range of strategic alternatives to further enhance shareholder value."

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.

FOR FURTHER INFORMATION PLEASE CONTACT:
        Candax Energy Inc.John Clarke
        Executive Vice President, Corporate
        416.361.2824
        Fax: 416.364.5400 (FAX)
        jclarke@candax.com

        CHF Investor Relations
        Lindsay Carpenter
        Account Manager
        416.868.1079 x. 239
        lindsay@chfir.com

Source: Candax Energy Inc.