TORONTO, ONTARIO--(Marketwire - June 13, 2012) -
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Candax Energy (TSX:CAX) reports that subsequent to the Robbana work-over, the well was re-opened and resumed production. Production returned to levels below levels before the well was shut in for the work-over. After conducting remedial work to determine the reason for the modest production, it was decided to stop production to do additional remedial work on the well. A fault detected on the pump was corrected and the pumping process then resumed. The production is expected to gradually reach the same level than before the work over.
The work-over was successful in re-perforating the upper zone; however, the re-perforation of the lower zone has not resulted in production from that zone. The work suggests that the well will return to production levels seen before the work over but will likely not reach the targeted production level of greater than 100 barrels per day.
The positive element obtained from this work-over is that there is significant production from a narrow layer of oil consisting of only a few meters. The development of the lower layer, with a much larger thickness, is still to be done. While we are working to produce Robbana-1 at the maximum level possible, we are reprocessing and re-interpreting the 2D seismic to better understand the structure of this field for its 2 horizons.
Candax is an international energy company with offices in Toronto and Tunis. 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.