Candax Energy Inc. engages in oil and gas exploration and the production of oil, gas and electrical power in Tunisia. It additionally holds an interest in an oil and gas exploration permit in Madagascar. The Company’s common shares are listed on the Toronto Stock Exchange under the symbol CAX.
2009 production was 818 barrels of oil per day (bopd), with 423,882 barrels of oil sold. Proven plus Probable Reserves at December 31, 2009 were 3.5 million barrels of oil (MMbbls) and 4.6 million barrels of oil equivalent (MMboe) (at 6,000 cubic feet (6 mcf) of gas per 1 barrel of oil equivalent). Proved Reserves of oil at December 31, 2009 were 1.1 MMbbls.
The El Bibane field, in which the Company has a 73.8% working interest, is located approximately 18 km offshore of Tunisia in the Gulf of Gabes. Production from the field started in 1998. Estimated net remaining Proven plus Probable reserves to the Company are 2.3 MMbbls of oil and 9.1 billion cubic feet (Bcf) of gas. The Company is currently focusing on a Phase 2 workover of the field.
At the El Bibane central processing facility Candax has a 50% interest in the SEEB 27 megawatt, single cycle power plant, which obtains the majority of its gas supply from the El Bibane field and provides electricity to the Tunisian Company of Electricity and Gas (STEG).
The Ezzaouia field started production in 1990. Candax has a 31.4% working interest in the field, which is located onshore in southern Tunisia approximately 12 km north of the town of Zarzis. Estimated net remaining Proven plus Probable reserves are 1.8 MMbbls of oil and 1.2 Bcf of gas.
Candax has an 80% working interest in the Robbana field, located in southern Tunisia on the island of D’Jerba. Estimated remaining net reserves are approximately 200,000 barrels.
The Chaal Permit is located in central Tunisia, approximately 50 km west of the city of Sfax. Within the permit is a very large gas/condensate discovery. In May, 2010 an agreement was signed giving SacOil Holdings Limited of South Africa the right to earn a 55% interest in the permit by paying 80% of the costs of a sidetrack to the existing Chaal-1 well. Candax will retain an 18.75% interest and continue as operator.
In 2007, through an agreement with the Madagascan Government, Candax and partner Dubai-based EAX obtained the oil and gas rights to Block 1101 onshore in the northern part of the country. Candax has a 60% share and is operator of the block. Madagascar’s Tsimiroro and Bemolanga onshore fields have reported 30 billion barrels of discovered tar sands or heavy oil at 8° to 16° API, and additional discoveries of light oil at 22° to 45° API have also been made onshore in the country.
On March 31, 2010 the Company concluded an arrangement with Geofinance NV, an international upstream oil and gas company, whereby Geofinance made an equity investment of C$13 million in the Company for an approximate 46% interest in the Company’s issued and outstanding shares, with an allowance for an increase in interest to approximately 58% through the exercise of warrants. In relation to this arrangement, Candax underwent a change in senior management.
On April 1, 2010 the Company announced that it had concluded an agreement with the Bank of Scotland to extend the final maturity date of the Company’s Borrowing Base Facility to June 30, 2014 and to reschedule payments under the facility.
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