TORONTO, ONTARIO--(Marketwire - May 16, 2012) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Candax Energy Inc. (TSX:CAX) is pleased to announce that, following the investment by IFC (the member of the World Bank focused on private sector development), Candax has purchased the remaining working interest in El Bibane and Robbana, currently owned by Maghreb. Candax has also received approval from the Tunisian authorities for the previously announced transaction with PA resources regarding the acquisition of working interests in El Bibane and Ezzaouia. As a result of these transactions, Candax now controls 100% ownership of El Bibane, 100% ownership of Robbana and 45% ownership of Ezzaouia with only one partner, ETAP, the Tunisian state oil company. These acquisitions also apply to the Deep Triassic potential exploration targets on El Bibane (offshore) and Ezzaouia (onshore). Candax is the operator of Robbana and El Bibane and through its 50/50 joint venture with ETAP called Maretap, Candax is joint operator of Ezzaouia. This reorganization of ownership structure puts Candax in a position of strength with respect to development of the fields in 2012 and beyond.
Benoit Debray, Chairman and CEO, stated "This is an important next step of the Candax strategy initiated 6 months ago to consolidate our ownership interests in our key assets. Candax now has improved control of the operations of our core assets as well as increased flexibility to develop the assets with potential business partners".
Candax is an international energy company with its head office in Toronto and offices in Tunis and Madagascar. 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.