Candax Energy Inc CXEYF

more news; delisting etc

[pwade0821]

Candax Energy Inc. Announces the Delisting of its Common Shares and a Refusal of its Early Lifting Offer

 

 

TORONTO, ONTARIO--(Marketwired - Aug. 18, 2015) - Candax Energy Inc. ("Candax" or the "Company") (TSX:CAX), a company with mature oil & gas field developments in Tunisia, announces that the Continued Listings Committee of Toronto Stock Exchange ("TSX") has determined to delist the Company's common shares effective at the close of market on September 17, 2015. The delisting was imposed for failure by the Company to meet the continued listing requirements of TSX.

The Company also announces that the internal bid committee of ETAP decided not to proceed to the next sale of crude oil scheduled for end of September 2015 as no interesting offers were received. Therefore, ETAP will not present any commercial offer to Ecumed and the next lifting will take place for an estimated quantity of 170,000 barrels by end of November 2015.

The cash balance of the Company as at end of August will be circa $0.9 million.

The net Candax share of crude oil in inventory as at end of July 2015, amounts to 66 thousand barrels ("kbbls") (over 117 kbbs available in Maretap Tank storage) which represents an approximate value of $2.8 million at today's Brent prices, rising to 106.5 kbbls net Candax share (197 kbbs available in Maretap Tank storage) by end of October, with a forecasted average monthly net production of 14.5 kbbls (25 kbbls gross production including partners).

Based on current business assumptions, and assuming that oil sales revenues are delayed until December 2015, the company would likely experience a cash shortfall by the end of October 2015. However the Company forecasts a positive cash balance at the end of 2015, once oil sales proceeds have been received.

The Company is actively working on options to pre-finance its crude oil inventory and its future account receivables.

Pierre-Henri Boutant, CFO and Interim CEO of the Company noted that "the delisting comes as a result of the effect of low oil prices which have caused reduced revenues and inadequate working capital. As well, the Company's financial condition, reduced price of its common shares, public float below $2 million are factors cited for the delisting by the TSX. Management will continue to seek for alternative options."