Candax Energy Inc CXEYF

RE: RE: RE: RE: BIG TIME DEBT (Corpkid)

[mind_business]

"John Clarke, Forbes/Starmine north american oil and gas analyst of the year. I've listened to each and every presentation since the day this company went public. They consider the deep gas to be equivelant to the large field to the south in tunisia."
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Well, I hope you're right. I too have followed Candax and their presentations over the years. Yes, I could have missed them equating it to a 20 TcF field, but I only remember 3 TcF ever being stated. Here's a report from 2007 where they estimate 3 TcF (2 of that from Ezzaouia):

https://www.candax.com/cmsAssets/docs/pdfs/ResearchMedia/Canaccord_Adams_Aug0107.pdf

"Secondly, Candax has exposure to additional exploration upside through two large Triassic structures below the Ezzaouia and El Bibane fields. Based on the company’s internal estimate, the exploration potential of these prospects is quite significant, with unrisked estimates of gross GIP greater than 3 Tcf. Candax plans to drill the onshore Ezzaouia structure first and, if successful drill the offshore El Bibane structure. The company is currently looking for a rig to drill the deep Ezzaouia Triassic prospect and discussions are ongoing with the Tunisian government regarding ETAP’s level of participation in the well. A decision from the government is expected before year-end.

Candax has a 2 Tcf gross GIP estimate for the Triassic structure at Ezzaouia (Candax 31.4%) and assuming that the company drills this structure first, we have estimated a value for potential exploration upside from Ezzaouia. If we assume a recovery factor of 70% on the gross GIP and a 20% chance of success with a nominal value of $3.00/boe, the Triassic has a risked potential of $0.26 per share, or $0.13 per share if Dana Gas exercises its 50% back-in right."

Having said that, 3 TcF (GIP - Gas in Place) is still very significant volumes. Remember, Chaal was only estimated at 1.7 TcF (GIP). Recoverables were estimated at 854 BcF on the high side. Therefore the Deep Triassic still has significant potential. Let's just hope they can accurately drill to the reserves ... it won't be easy.