Candax Notes Production Results at Ezzaouia Field

Candax announced that the Ezzaouia field (31.4% WI), operated by Maretap, a joint operating company between Candax and ETAP, the Tunisian national oil company, is currently producing at over 1,000 bopd subsequent to the previously announced 2010/2011 side-track and work-over campaign. The campaign side-tracked wells Ezzaouia-5 and Ezzaouia-2 and performed work-overs on Ezzaouia-1, Ezzaouia-9 and Ezzaouia-11. Although the results have not been fully in line with expectations, they remain encouraging especially in regards to well Ezzaouia-2 which is performing well with sustained production of 400 bopd and an 8% water-cut. The campaign also provided critical data on reservoir performance and indications of additional upside have been identified.

Richard Norris, President and CEO of Candax commented, "Although we are very pleased with the current level of production, we believe this is just the beginning. We see near term additional production coming from on-going interventions on two shut-in wells. More significantly we believe that this campaign has proven that there is additional production possible from this venerable old field. After production of some 22 mmbbls to date, we note that the recovery factor has been approximately 15%, thus we believe there is significant upside in the implementation of targeted secondary recovery techniques, and we look forward to working with our partners in accessing these reserves."