TORONTO, ONTARIO--(Marketwire - March 29, 2011) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Candax Energy Inc. ("Candax") (TSX:CAX) announces that the Robbana-1 work-over, announced on March 18, 2011, has provided significant data concerning the build-up of pressure in the reservoir after its 20-month shut-in. The pressure data is materially higher than previous measurements and these new higher pressure measurements indicate a significantly larger volume of fluids connected to the Robbana-1 well located onshore Tunisia.
On March 19, 2011 a pressure gradient survey was carried out from 2,150 metres to surface during which the maximum recorded bottom-hole pressure was 2,267 psia at 92 degrees C. Upon review of all the data, Candax has calculated by material balance that there are approximately 27 million barrels (mmbbls) of connected volumes in Robbana-1. This can be compared to the 14 mmbbls that Ryder Scott independently assessed in its 2008 Independent Reserves Report and to the 18 to 25 mmbbls independently calculated by Petroleum Insights Sarl and MHA Petroleum Consultants LLC as announced on March 18, 2011, both of which were based on shorter build-up periods and/or volumetrics.
Richard Norris, CEO of Candax, commented:
"While there can be no assurance as to the proportion of this volume which is oil, it is informative to note that in its 17-year production history, Robbana-1 has only ever produced oil with negligible traces of water. This fact prompts a consensus opinion that it is likely the material balance in Robbana-1 indicates predominantly oil volumes. Understandably, we are very encouraged by these results and will move directly to stimulate the well for early production. A suitable rig for the stimulation work-over has been identified and should become available shortly."
With reference to the Petroleum Insights Sarl report and noted in the Company's press release of March 18, 2011, a recovery factor of 24% to 32% can be anticipated under water-injection which implies 6.5 to 8.7 mmbbls of recoverable volumes (80% to Candax).
The Company's Qualified Person as defined by National Instrument 51-101 is President & CEO Richard Norris who holds a B.Sc. in Geology, a M.Sc. in Petroleum Geology, and a Ph.D. in Petroleum Engineering from Imperial College, London, UK. Dr. Norris is an active member of the Society of Petroleum Engineers and has co-authored several papers on Reservoir Characterization, Geostatistics as well as Multi-phase Flow-Metering. He has reviewed and approved the contents of this news release.
Candax Energy Inc. is an international energy company with its head office in Toronto and offices in Tunis and Madagascar. The Candax group is engaged in exploration and the production of oil and gas and power generation in Tunisia, and holds an interest in an exploration permit in Madagascar.
This news release includes "forward looking statements", within the meaning of applicable securities legislation, which are based on the opinions and estimates of management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Such risks and uncertainties include, but are not limited to, risks associated with the oil and gas industry (including operational risks in exploration development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the ability of Candax to continue to service its debt; the uncertainty of reserve estimates; the uncertainty of estimates and projections in relation to production, costs and expenses; the uncertainty surrounding the ability of Candax to obtain all permits, consents or authorizations required for its operations and activities; and health safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the ability of Candax to fund the capital and operating expenses necessary to achieve the business objectives of Candax, the uncertainty associated with commercial negotiations and negotiating with foreign governments and risks associated with international business activities, as well as those risks described in public disclosure documents filed by Candax. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of Candax Energy Inc. should not place undue reliance on these forward-looking statements.
FOR FURTHER INFORMATION PLEASE CONTACT: Candax Charlotte May Corporate Secretary 416 364 3353 cmay@candax.com CHF Investor Relations Jeanny So Account Manager 416 868 1079 ext. 225 jeanny@chfir.com CHF Investor Relations Cathy Hume CEO 416 868 1079 ext. 231 cathy@chfir.comSource: Candax Energy Inc.
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