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Candax Releases Drilling Update on El Bibane Offshore Tunisia

12-29-2007

Candax Energy Inc. announces that the second development well on the El Bibane project offshore Tunisia, EBB-5, was successfully drilled to a total depth of 2250 metres. The well has been logged and interpretation indicates that the porosity and hydrocarbon saturations are the best seen in the field to date. The well will be perforated through casing and completed as a gas injection well which will ensure improved recovery of condensate from the gas cap.

The perforation program is expected to be completed over the next few days, following which, the West Titania rig will be mobilized to the third and final well location for a re-entry of the EBB-3 well. The EBB-3 well is a horizontal producer on the southern flank of the field and is expected to start drilling next week.

The installation of the offshore production facilities at the producing EBB-4 location and tie in to the oil and gas pipeline has been delayed by four weeks due to the offshore weather conditions which have been particularly poor in the last month. The offshore platform has been successfully installed and the current operations involve the pipeline hook-up and commissioning. Production start up is now anticipated in early January.

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.