SYS-CON MEDIA Authors: Unitiv Blog, Kevin Benedict, Maxime Charlès, RealWire News Distribution, Gilad Parann-Nissany

News Feed Item

Candax Reports Lifting Results, Adjustment to Lifting Methodology

TORONTO, ONTARIO -- (Marketwire) -- 11/16/12 -- Candax Energy Inc. ("Candax") (TSX:CAX) announces that Entreprise Tunisienne d'Activites Petrolieres ("ETAP"), the Tunisian state-owned oil company completed a lifting of 150,410 barrels of oil on October 30th on behalf of partners in the El Bibane, Ezzaouia and Robbana fields. The price per barrel realized for the Candax share of the lifting of $97.20 is based on the average Brent oil price for the period November 1, 2012 to November 5, 2012 with a discount of $8.77 for the Ezzaouia "melange" category of Brent. The discount is primarily due to reduced refinery capacity due to seasonal maintenance and ETAP commercialization fees.

The net volumes attributable to Candax are approximately 50,000 barrels. Of this volume, 16,000 barrels are subject to a contractual Domestic Market Obligation discount of 10%. Proceeds of approximately $4.9 million will be realized in mid-December.

Candax also announces that it has entered into an agreement with ETAP, whereby liftings can be managed on behalf of Candax by ETAP and that each lifting will be done on a pro-rata basis, the result being that Candax will be able to realize revenues on its proportionate share of each lifting. This lifting methodology will simplify revenue recognition and allow Candax to realize revenues on a more consistent and regular basis going forward.

Pierre-Henri Boutant, CFO of Candax commented, "We are pleased to have adjusted the lifting methodology as the change will allow much better transparency and stability with respect to revenue recognition going forward."

About Candax

Candax is an international energy company with offices in Toronto Tunis. The Candax group is engaged in exploration and the production of oil and gas in Tunisia and holds an interest in an exploration permit in Madagascar.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.