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TORONTO, ONTARIO--(Marketwire -08/10/12)- NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Candax Energy Inc. ("Candax") (CAX.TO) reports revenues of $1.95 million for the second quarter of 2012 compared to $2.72 million for the same period in 2011. Please note that Candax has changed its reporting currency to US dollars to align its reporting with the currency most often used in its day to day business. All amounts referred to in this press release are in US dollars. In the second quarter 2012, Candax had negative cash flow from operating activities of $4.30 million, which was greater than the negative cash flow of $1.28 million for the same period in 2011, largely because of $1.8 million in costs relating to a workover at Ezzaouia and
.8 million relating to final costs of a workover at Robbana. Candax recorded a loss of $3.70 million ($nil per common share) for the three months ended June 30, 2012, compared to a loss of $1.96 million ($nil per common share) for the same period in 2011.
Candax's net average production for the second quarter of 2012 was 321 bopd, compared to 279 bopd in the same period for 2011. The increase in production is attributable to the increase of production at the Robbana field, the workovers at the Ezzaouia field, and the increase in production at the El Bibane field due to the testing of the gas cycling project. In addition, net production to Candax has increased due to the increase in ownership interest through the purchase of PA Resources stakes in El Bibane and Ezzaouia. Candax's current net production is approximately 500 bopd.
As at June 30, 2012, Candax had cash and cash equivalents of $10.4 million, versus $13.4 million at December 31, 2011. The strong cash position is primarily attributable to the previously announced $11.7 million equity financing completed in February 2012. Candax also has $6 million outstanding under its $10 million shareholder loan with its majority shareholder, Geofinance N.V. Candax's second quarter 2012 Condensed Interim Consolidated Financial Statements and Management's Discussion and Analysis may be viewed under the Candax profile at www.sedar.com.
Benoit Debray, Chairman and CEO stated, "The second quarter was highlighted by ongoing successful remedial work on the Ezzaouia field as well as progress on the gas cycling testing work on the El Bibane field. We are encouraged by the resultant increase in production on both fields."
Candax is an international energy company with its head office in Toronto and an office in Tunis. The Candax group is engaged in exploration and the production of oil and gas in Tunisia and holds an interest in an exploration permit in Madagascar.