Candax Energy Spuds Chaal-1 in Tunisia

Candax Energy reports that the Chaal-1 exploration well, located on the Chaal Permit in Tunisia, was spudded on February 5, 2006. Surface casing is due to be set at 480 meters, and the well is currently drilling ahead at 205 meters. The Chaal-1 well is expected to take approximately 50 days to drill to a total depth of approximately 4,500 meters and log. An additional 30 days is expected for completion and testing. The preliminary testing program, approved by partners, is subject to log interpretation and calls for the testing of at least three zones in the primary target Lower Nara formation.

Candax, as previously announced, has mapped a large prospect in the Chaal Permit, which could extend over an area of 300 square kilometers and has multi-Tcf potential area. Two wells that were drilled on the structure over 40 years ago, encountered a hydrocarbon column of approximately 150 meters in the Lower Nara, Jurassic formation. Several zones were successfully tested in the column at rates of up to 3 MMcf/d of gas and condensate rates ranging from 25-80 barrels per MMcf.

Simultaneously, Candax announces an update on the impending mobilization of the El Bibane redevelopment program offshore Tunisia. The previously announced contracted mobilization date of January 23, 2006 has not been met due to engineering and certification delays related to the fabrication and construction of the jack-up barge system. Candax has placed members of its team to work alongside the contractor to accelerate this process, and looks forward to communicating a revised schedule for the El Bibane drilling program by mid-February.

Michael Wood, President & CEO, commented: "The Candax team is delighted to announce the spudding of the high impact Chaal-1 exploration well. This multi-Tcf prospect is the kind of world class exploration play that we want to expose our investors to."