TORONTO, ONTARIO--(Marketwire -08/10/12)- NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Candax Energy Inc. ("Candax") (CAX.TO) reports revenues of $1.95 million for the second quarter of 2012 compared to $2.72 million for the same period in 2011. Please note that Candax has changed its reporting currency to US dollars to align its reporting with the currency most often used in its day to day business. All amounts referred to in this press release are in US dollars. In the second quarter 2012, Candax had negative cash flow from operating activities of $4.30 million, which was greater than the negative cash flow of $1.28 million for the same period in 2011, largely because of $1.8 million in costs relating to a workover at Ezzaouia and $0.8 million relating to final costs of a workover at Robbana. Candax recorded a loss of $3.70 million ($nil per common share) for the three months ended June 30, 2012, compared to a loss of $1.96 million ($nil per common share) for the same period in 2011.
Candax's net average production for the second quarter of 2012 was 321 bopd, compared to 279 bopd in the same period for 2011. The increase in production is attributable to the increase of production at the Robbana field, the workovers at the Ezzaouia field, and the increase in production at the El Bibane field due to the testing of the gas cycling project. In addition, net production to Candax has increased due to the increase in ownership interest through the purchase of PA Resources stakes in El Bibane and Ezzaouia. Candax's current net production is approximately 500 bopd.
As at June 30, 2012, Candax had cash and cash equivalents of $10.4 million, versus $13.4 million at December 31, 2011. The strong cash position is primarily attributable to the previously announced $11.7 million equity financing completed in February 2012. Candax also has $6 million outstanding under its $10 million shareholder loan with its majority shareholder, Geofinance N.V. Candax's second quarter 2012 Condensed Interim Consolidated Financial Statements and Management's Discussion and Analysis may be viewed under the Candax profile at www.sedar.com.
Benoit Debray, Chairman and CEO stated, "The second quarter was highlighted by ongoing successful remedial work on the Ezzaouia field as well as progress on the gas cycling testing work on the El Bibane field. We are encouraged by the resultant increase in production on both fields."
Candax is an international energy company with its head office in Toronto and an office in Tunis. The Candax group is engaged in exploration and the production of oil and gas in Tunisia and holds an interest in an exploration permit in Madagascar.
This news 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 ability of Candax to continue to service its debt; 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 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 to fund the capital and operating expenses necessary to achieve the business objectives of Candax, 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. 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.