Madagascar's President Okays Candax PSA
Candax Energy Inc. has received the Presidential Decree for Block 1101, onshore Madagascar. The Production Sharing Agreement was originally signed with the Government of Madagascar in November 2006.
The planned work program for Block 1101 will be initiated by geological and technical field studies in 2007, with the goal of undertaking a seismic program in early 2008, followed by the drilling of the first exploration well in the latter half of 2008.
Block 1101 is a large exploration permit located onshore, North West Madagascar and covers 14,900 square kilometers. Candax is the operator with a 60% equity interest. The acreage offers Candax a low cost entry into one of East Africa's most prolific oil provinces with billion barrel potential. The Block is located north of a number of large onshore fields with reported heavy oil in place of approximately 30 billion barrels as well as several lighter oil discoveries.
Candax Energy Inc. is an international energy company with its head office in Toronto, Ontario, Canada and management offices in London, Dubai and Tunis. The Company holds a number of concessions in Tunisia through its subsidiary companies and is involved in the exploration and production of oil, gas and power generation in the country. Candax is initially focusing its growth activities on production and development projects in the Middle East and North Africa, where the group has strong relationships as well as extensive management experience.