Candax Energy Inc CXEYF

RE: OIL UP $3.67 and CAX drops 5%???

[Malahat]

Rishshah - The SP moved down on less than 100,000 shares traded today. It's frustrating but it doesn't mean much. Candax put itself in a hole that it is trying to climb out of. The current evidence is that net production to CAX will be about 2100BOE/Day with current onshore production and El Bibane fully operational. Add some unknown amount of NG liquids to that if you like. Net production of up to 4000BOE/Day as you posted earlier is very unlikely. The optimized production on El Bibane may prove to be higher in time, but that remains to be seen. CAX spent a ton of money to get total all field production only slightly above all field production rates from 3 years ago.

New drilling on the onshore producing fields may well add significant production and would likely see a commensurate rise in SP. The historic high point in share price was reached in anticipation of strong production from Chaal, and if and when Chaal is successfully reentered and put on production with good flow rates the SP will likely exceed those historic highs. Right now, Chaal is the company maker and there is hope for Ezzaouia and Robbana in the near and mid term. Expecting a big jump in SP upon completion of El Bibane is just wishful thinking and likely to disappoint you and anyone who also thinks your view is correct. I'm not bashing, just being realistic. I would rather see a surprise to the upside than be disappointed when enthusiastic predictions are not met. I've been long since Sep '05 and have had enough of disappointments.