Candax Energy Drilling Ahead on Chaal-1 Well

Candax Energy says the Tunisian onshore Chaal-1 exploration well, which spud February 4th, is currently below 2,500 meters and drilling ahead to planned total depth of 4,500 meters. The Chaal-1 well is expected to take a total of 50 days to drill and log, and is currently on track for the test program to commence early April.

Candax also anticipates mobilization of the drilling rig for the re-development of its offshore El-Bibane field to occur early in April. Candax Management are working closely with the contractor regarding the resolution of fabrication delays for the jack-up barge. The current status is that the drilling rig has been installed on the jack-up barge, which is being upgraded in order to strengthen the barge to accommodate the larger rig required for the horizontal drilling program. Candax Management is having regular meetings with the drilling contractor senior management to ensure that the contractor achieves as rapid a completion of the rig upgrade as possible and to ensure final fabrication will meet safety certification requirements.

Michael Wood, President & CEO, commented: "The Candax team is pleased that drilling on our high-impact Chaal-1 well is proceeding according to plan. This multi-Tcf prospect is exposing our investors to very significant upside. We are also pleased that our participation on site with our contractor has provided us with greater confidence that mobilization for El-Bibane should occur early in April."

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.