Candax Spuds Well at El Bibane, Offshore Tunisia

Candax Energy has commenced drilling of the first well in the three-well development program on the El Bibane oil and gas field, offshore Tunisia.

The EBB-4 is being drilled using the West Titania jack-up rig. First oil and gas production from EBB-4 is expected by the first week of October 2007. Upon completion of EBB-4, the West Titania rig will move to the second well location, EBB-3RE2, to re-complete the existing well by drilling a new, horizontal production well in the oil column. It is anticipated that the completion of EBB-3RE2 should take approximately 30 days, when the rig will be moved to the final location, EBB-5, which will be used as a gas re-injection well. First gas injection is likely to commence early in December.

Michael Wood, President and CEO, commented:

"We are extremely pleased that drilling has commenced on the El Bibane field. The EBB-4 well marks the commencement of our aggressive drilling program that we outlined at our recent Annual General Meeting. We look forward to further significant production increases from El Bibane in the third quarter and stabilized full field production by December."

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 was formed through the combination of a highly experienced executive management team with successful Canadian founders and financiers, to develop an international upstream oil and gas project portfolio. 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.