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TimeBuilderon Oct 23, 2012 12:28pm
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News Release = copy FYI
News Release = copy FYI For your viewing pleasure....Good release!!! All comments welcome.
from Marketwire
Candax Reports on El Bibane Gas Cycling Progress
Monday, October 22, 2012
TORONTO, ONTARIO--(Marketwire - Oct. 22, 2012) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Candax Energy (TSX:CAX) is pleased to report that the well intervention on El Bibane-4 ("EBB4") well has been completed and operations resumed with an encouraging 215 barrels per day of condensate production.
In April, 2012, Candax management met with the Tunisian Authorities (Direction General de l'Energie) to review various scenarios and to discuss a plan to develop El Bibane. At the meeting it was decided to initiate a "gas cycling pilot" to assess the potential for condensate recovery by producing wet gas from El Bibane-5 ("EBB5") and reinjecting dry gas on EBB4.
The gas injection process on EBB4 started on May 28th, 2012 after a production test was successfully completed. During the summer Candax tested the optimal parameters and planned an offshore intervention on EBB4 to configure the well for long term injection. On Sept 29th, EBB5 well was shut in and the system depressurized in preparation for the EBB4 well intervention. On Oct 3rd, a barge was positioned near the EBB4 platform and the long term injection configuration was completed on Oct 7th.
EBB5 production resumed on Oct 10th with a condensate production over 100 bopd at our onshore facilities. Gas injection on EBB4 resumed on Oct 20th which enables a condensate production over 200 bopd at the plant.
The incremental after tax value to each additional barrel of oil from El Bibane is particularly valuable because of the low royalty rates (currently 2%) and the ability to apply tax loss carry forwards to the revenues from the field.
CEO Benoit Debray stated, "We are very happy to see increasing production at El Bibane as a result of the gas cycling program and look forward to the potential to add another compressor to increase production even further and improve liquid recovery from the El Bibane field."