Candax Unveils Gross Production from Ezzaouia, El Bibane Fields

Candax Energy Inc. has provided an operations update concerning Ezzaouia and El Bibane and to provide guidance on forecast production for the remainder of 2008.

Production from Ezzaouia 17 commenced on August 27, 2008. Latest gross production from the onshore Ezzaouia field (WI 31.38%) is 1,700 bopd.

On the offshore El Bibane field (WI 73.84%), work to optimize production is continuing and gross production from EBB-3 and EBB-4 is currently 2,000 bopd. Gross production of natural gas is 22 mmcf/d of which gross volumes of up to approximately 7 mmcf/d are sold to the SEEB power generation plant. The balance of the produced gas is re-injected to optimize recovery of liquids from the reservoir. Facilities optimization work is ongoing to handle water production that is greater than initially expected and recent work has included the expansion of water handling facilities. Further engineering work, including the installation of larger chokes on the producing wells (EBB-3 and EBB-4) and the reconfiguration of the gas flaring system will be undertaken in the third and fourth quarter.

Candax's net production for the third quarter is expected to average approximately 1,600 boe/d (1,200 bopd and 2.5 mmcf/d) and production for the fourth quarter is currently forecast at 2,800 boe/d (2,000 bopd and 4.7 mmcf/d). The revisions in quarterly production expectations are due to delays in the commencement of full production and optimization at El Bibane and a more conservative view of oil production rates from the Ezzaouia field.