Candax Energy Discloses Production Still On Hold in Tunisia

02-08-2008

Candax Energy Inc. has tied in the platform at the EBB-4 oil and gas well off Tunisia to the export pipeline, but production will not begin until a three-well program is completed and a gas recycling system is installed.

The company disclosed that "a considerable volume of water was lost into the EBB-4 well during the drilling of the horizontal section, which will need to be removed from the near-wellbore area by gas-lifting with the recompressed gas."

It said continuing unfavourable weather in January caused new delays, but installation of the EBB-5 platform is progressing, while drilling is underway at EBB-3, the final well in the program.

The full field development now is expected to be completed in March.

Candax also disclosed it has drawn a further US$29 million on its credit facility with Bank of Scotland, following a US$20-million drawdown in December.