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Candax: To Start Drilling El Bibane and Issues Q1 2007 Results

Candax Energy Inc. 05-15-2007

Candax Energy Inc.  reported a first quarter 2007 loss of $0.9 million ($(0.01) per common share) compared to net income of $1.6 million ($0.01 per common share) in the first quarter of 2006.

Revenues of $2.1 million were earned from the sale of approximately 33,720 barrels of oil. Production in the first quarter was 37,757 barrels of oil. There was no production from the El Bibane field that is currently being developed and no revenue from the SEEB power generation facility as it depends on gas sourced from the El Bibane field. Candax maintained a strong working capital position including $45 million in cash and cash equivalents as at March 31st, 2007.

Chris Hopkins, CFO, commented: "Candax maintains a strong balance sheet at the end of the quarter even with less than full production capacity in place. The Company remains well positioned to fund the El Bibane program over the coming months and beginning in the second quarter of this year."

Mike Wood, CEO, added: "We look forward to the start of drilling followed by production start-up from the El Bibane field, with Seadrill rig mobilization currently underway."

The first quarter Interim Consolidated Financial Statements and Management's Discussion & Analysis may be viewed online at www.sedar.com.

Candax Energy Inc. is an international energy company with its head office in Toronto, Ontario, Canada and management offices in London, Dubai and Tunis. The Company holds a number of concessions in Tunisia through its subsidiary companies and is involved in the exploration and production of oil, gas and power generation in the country. Candax was formed through the combination of a highly experienced executive management team with successful Canadian founders and financiers, to develop an international upstream oil and gas project portfolio. Candax is initially focusing its growth activities on production and development projects in the Middle East and North Africa, where the group has strong relationships as well as extensive management experience.