candax energy update on tunisia operations

Candax Energy: Update on Tunisia Operations

06-02-2008

Candax Energy Inc. announced that the drilling of the onshore Ezzaouia 17 well commenced May 30, 2008. The well targets an un-drilled fault block in the east section of the field. Following the completion of the Ezzaouia 17 well, the rig will move to the second infill location, Ezzaouia 18, and following that well, it will move to Chaal.

In addition, the Company has completed its first equity tanker lifting of crude oil for 2008 during the last week of May lifting approximately 120,000 barrels net to Candax.

The Tunisian Government has confirmed the two year extension of the first exploration period of the Chaal Permit, with no additional work commitments. The drilling of the Chaal-1 side-track well and test program is scheduled to commence in late August / early September 2008.

"The two well Ezzaouia drilling campaign is an important investment designed to maximize our near term onshore oil production," said Michael Wood, president and CEO of Candax Energy. "We are also pleased to be working so effectively with the Tunisian government to further appraise the Chaal discovery later this year. The El Bibane offshore development project is still in progress, however we are pleased to confirm that the weather critical operation of the offshore topside installation at EBB3 was successfully completed today, the remainder of the hook-up, testing and commissioning work is much less weather dependent and thus production start-up is now planned to be completed in the next few weeks from the EBB3 well and optimization work to maximize offshore production can then be delivered."