Increased W.I. in El Bibane / Ezzaouia ... good de Just looking back at Candax's increased working interest for El Bibane and Ezzaouia (announced in Jan 2012).
Assuming the additional 100 bopd can be maintained for more than 1 year, Candax made a relatively smart deal. Based on today's Brent Price ($126.06), and estimated cost of (production, royalties, etc - assume 30%), the payback should be approx:
($4 mil)/($126.06 x 100 bopd x 0.7) = 453 days = 1.24 years (break-even time-frame)
Quote from Jan 2012 announcement:
"Candax Energy Inc. is pleased to announce that it has entered into an agreement with PA Resources AB to purchase PA Resources' 23.9% working interest in the El Bibane field and its 13.6% interest in the Ezzaouia field for a cash consideration of US$4 million."
"The purchase of these additional working interests will increase Candax's ownership of the El Bibane field to approximately 98% and 45% for the Ezzaouia field and will add approximately 100 bopd of production to Candax."
https://ca.finance.yahoo.com/news/repeat-candax-purchases-additional-interests-130000811.html
Candax's 2012 plans for El Bibane (from their 'The Candax Revival' - Fact Sheet):
"Plan a workover and one or two new drills in 2012"