Candax Sees Potential in Madagascar

Candax Energy says that exploration activity on Block 1101, onshore Madagascar has commenced and the geological fieldwork over the focus area has been completed with very encouraging results.

Thick potential reservoir sections with good oil-staining have been confirmed and numerous oil seeps have been identified on the block. Interpretation and integration of the fieldwork studies with regional aeromagnetic surveys is ongoing and will be used to delineate the 2D seismic acquisition program.

The seismic program is scheduled to commence at the beginning of next year's dry season, sometime in March/April, 2008. Subject to further planned technical work and rig availability, it is anticipated that drilling of the first well should begin in late 2008 or early 2009.

"The early indications from Madagascar are very encouraging," Michael Wood, Candax Energy's CEO. "We clearly have an active hydrocarbon system in Block 1101 and are looking forward to implementing our seismic program to further evaluate potential drilling locations."