Candax Energy Experiences Delay at El Bibane Field

Candax Energy says that it continues to experience a delay in the mobilization of the jackup drilling barge and rig for the re-development of the El Bibane oil field offshore Tunisia.

Michael Wood, President & CEO, commented: "The commencement of our development operations for El Bibane has slipped due to contractor delays in the final stage of fabrication and safety certification. This slippage is not creating additional costs to Candax and the avenue taken represents the most cost and time effective one for the Company to pursue. It is Candax's expectation that production from El Bibane will still re-start in the latter half of Q2 2006. There are a series of meetings with contractor senior management this week."

Candax Energy 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 and extensive management experience.