Candax Energy Inc CXEYF

April 3 NR: Ezzaouia up to ~650!

[pwade0821]

Candax Energy Inc. Completes Workover Campaign/Installation of Compressor

 

 

TORONTO, ONTARIO--(Marketwired - April 3, 2014) - Candax Energy Inc. ("Candax" or the "Company") (TSX:CAX), a company focused on mature oil field development in Tunisia, today announced that its multi-well workover campaign on its Ezzaouia field is complete. In addition, the Company announced that the installation of a higher capacity compressor on its El Bibane field has been fully commissioned.

Highlights of the Ezzaouia workover campaign are as follows:

• The workover campaign, which included wells EZZ-1, EZZ-17, EZZ-2, EZZ-18 and EZZ-9, saw the conversion of the extraction methodology from jet pump to beam pump;
• All wells are producing with the exception of EZZ-9, which will be fitted with a beam pump once equipment arrives in May; and
• Production on the Ezzaouia field is now at approximately 650 bopd and is expected to rise to above 750 bopd once EZZ-9 is brought on line in.

Highlights of the acquisition of the second compressor are as follows:

• The installation, performance test and commissioning of the higher capacity compressor in the El Bibane field has now been completed;
• The performance test included a 24 hour running period at the maximum design rate of 11 mmscf/d.
• As per Company program, the field will now be produced at a rate of 7 mmscf/d gas production with a current CGR of 38 bbls/mmscf, resulting in a production over 260 bopd.
• Pending on monitoring results of the gas cycling pilot, the Company intends increasing the gas production rates from 7 mmscf to 9 mmscf and then to 11 mmscf by the end of the year.
• The compressor has been acquired on a lease-to-own basis.

"The completion of the workover campaign on Ezzaouia and the acquisition of the higher capacity compressor mark important milestones in the development of the producing assets of Candax," commented Jamil Hamza, Deputy General Manager of Ecumed, 100% subsidiary of Candax. "We expect that the cash flow generation from these activities will help fund further development and drilling programs for the company going forward."

 

[Goldy90]

I guess were the only ones that saw this as positive news. I thought there would have been a nice jump in the SP but I guess not. Seems like management is doing a good job here. Especially what they were left to work with from previous management.

[BlindBat_1]

No offense but that number is GROSS number, they only get 45% of it when all is said and done. Read their latest MD&A and you'll realise that their plan is for roughly 500 boep/d for the year  2014. Net means $19 or so millions ...barely enough to paid the rent, the salaries and reimburse the Loans ....did you say you needed money to start poking holes??? OK maybe we try one hole for

[cloudrunner]

You should march on in there and show them how to do their jobs instead of spouting off like an armchair quarterback. You been hitting the sauce or something? 

[Goldy90]

Blindbat, I've been invested in Candax for about 3 years now. I'm new to the bullboard as a poster but not as a viewer. Iv read your posts on here for those 3 or so years. You've been on this particular bullboard for along time. You have always seemed to be on Candax's side to me. If you don't like what you see then why have you stayed for so long? I know I haven't liked

[BlindBat_1]

Similar boat sadly. I had hope they would turn this boat around and plug the holes in the hull.....but after carefull analysis and given the rate of their execution of the last 2 years. I sadly have come to the conclusion, that there is no way they can poke ( fund) a new hole to increase 2 P and prove additional reserve, let alone increase production enough to turn this into a profitable outcome.

[Goldy90]

Well that's just simply depressing Blindbat. I guess I should reconsider my holdings as well.

[BlindBat_1]

Very sorry to dissapoint , but as they say number talk bullsh*t walks. Take any metrics, I posted some a few posts back and you'll see that best of time this ends up at 0.02 cents for a while. But now they are giving guidance of 500 barrels per days for 2014 and to boot forwarning they will be $5 millions short to pay debt and will look at how to fund the shortfall, debt or equity .... Not