El Bibane Offshore Tunisia in Line for Redevelopment
Candax Energy Inc. provided an update on its Tunisian operations for the completion of the El Bibane offshore re-development project and an outlook on the Company's growing production. The El Bibane field (73.8% net ownership by Candax) is currently producing at a steady gross rate of approximately 1,200 bopd and 12 mmcf/d of gas from the EBB4 well only. Approximately 7 mmcf/d of the produced gas is being sold to the SEEB power station (50% net ownership by Candax) which resumed operations and sales of electricity on April 15, 2008 at its maximum rated capacity of 27 MW.
The platform and pipeline installation for EBB3 is continuing, with the jacket installation currently underway. This work has been delayed by more than three weeks because of poor offshore weather conditions, and the Company expects to achieve production from this well in the third week of May. Once EBB3 is on production, Candax will commence operations to initiate gas recycling and fully optimize oil production from the three El Bibane wells. The next equity crude lifting has been sold, and the cargo vessel is scheduled to lift during the last week of May. As oil production continues to increase, crude oil sales (liftings) will also accelerate.
Michael Wood, President & CEO, commented, "Candax's net oil production will build as EBB3 is brought on stream and with the completion of the new wells and work-overs at the onshore Ezzaouia field. Despite some frustrating delays in completing the El Bibane development, due to continued poor weather offshore Tunisia, Candax is very pleased with the results to date and the current stabilized production rate from EBB4. Candax maintains a strong balance sheet as it moves into the high impact onshore drilling program which was announced in our press release of Monday, April 28."