Candax Energy Inc CXEYF

A new Life for Candax

[OceanRanger1]

What a breath of fresh air to rid ourselves of the current management team. Their head office must have looked like a scene right out of an old three stooges movie, they probably couldn't tie their shoes without hitting their head on the desk. Get the brooms out sweep it clean then padlock the door. Thank God we've been saved.

The market sure likes the change and so do I. I have been holding here way too long and I finally started selling when it looked like we were going to zero so I sold half my position at 6c just to get some capital back. It looked so gloomy then but now we have a new life with a new management team and I feel so good about it I added another 50,000 shares today at 10.5c and will add more next week.

This new team has the expertise to complete their missions and there is alot of value trapped in our assets just waiting to be released. They are approaching things in the right way too by re-establishing cash-flow and production then I get all warm and fuzzy when I think they have world-class high-pressure drilling expertise in house for Chaal and our deep Triassic zones.

We may have missed committments on the Madagascar or we are very close to breaking the deal. I know they did their seismic work but then they ran out of money to proceed any further. It may be too late but we'll see. Once production and cash-flows are stabilized we can finally go back and make a proper assessment on this discovery well at Chaal. It was speculated there could be a bcf of gas at Chaal and the infrastructure for gas is within reach now. 

For the ones who weren't around then - Chaal successfully re-discovered gas that had already been drilled up years ago but abandoned because back in the 1970's there was no infrastructure for the gas. The resevoir thickness was huge - I think around 300 feet - but the well bore was damaged as a result of extreme drilling pressures and the rig hired by Candax couldn't cope so the well could never be flow tested and they never did go back to test the discovery because they embarked on a 6 month well work-over on El Bibane that ended up taking years and led the company to the verge of bankruptcy. Mitsubishi was our partner to drill Chaal so I wonder if they still have any ownership rights on it. 

At one time we were hoping for $2 or $3 from Cax and it is damn sure worth more than 10.5c once production and cash-flows are re-established. I know that whenever you think you have out smarted the market it comes back and bites you but this seems about the closest thing to a no-brainer possible. 

I know before production was shut down we were producing 1500 b/day from just one of the wells and we originally hoped for 3-5,000 b/day production from the El Bibane field. If we can just start taking baby steps we could see $1+ within the next year. I like it. 

Nice to see that some of the original holders are still here to regain some of our losses. I know my original purchase here was aroud $1 per share so if we load up down here maybe we ride a bigger position back up to $1 and profit from our knowledge in this company because we know just how under-valued it is right now. 

Go Candax.


OceanRanger