TORONTO, ONTARIO--(Marketwire - Oct. 22, 2012) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Candax Energy (CAX.TO) is pleased to report that the well intervention on El Bibane-4 ("EBB4") well has been completed and operations resumed with an encouraging 215 barrels per day of condensate production.
In April, 2012, Candax management met with the Tunisian Authorities (Direction General de l'Energie) to review various scenarios and to discuss a plan to develop El Bibane. At the meeting it was decided to initiate a "gas cycling pilot" to assess the potential for condensate recovery by producing wet gas from El Bibane-5 ("EBB5") and reinjecting dry gas on EBB4.
The gas injection process on EBB4 started on May 28th, 2012 after a production test was successfully completed. During the summer Candax tested the optimal parameters and planned an offshore intervention on EBB4 to configure the well for long term injection. On Sept 29th, EBB5 well was shut in and the system depressurized in preparation for the EBB4 well intervention. On Oct 3rd, a barge was positioned near the EBB4 platform and the long term injection configuration was completed on Oct 7th.
EBB5 production resumed on Oct 10th with a condensate production over 100 bopd at our onshore facilities. Gas injection on EBB4 resumed on Oct 20th which enables a condensate production over 200 bopd at the plant.
The incremental after tax value to each additional barrel of oil from El Bibane is particularly valuable because of the low royalty rates (currently 2%) and the ability to apply tax loss carry forwards to the revenues from the field.
CEO Benoit Debray stated, "We are very happy to see increasing production at El Bibane as a result of the gas cycling program and look forward to the potential to add another compressor to increase production even further and improve liquid recovery from the El Bibane field."
Candax is an international energy company with offices in Toronto 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 should not place undue reliance on these forward-looking statements.