|By Marketwired .||
|August 8, 2014 01:34 PM EDT||
TORONTO, ONTARIO -- (Marketwired) -- 08/08/14 -- Candax Energy Inc. ("Candax" or the "Company") (TSX: CAX), a company focused on mature oil field development in Tunisia, today announced financial and operating results for the quarter ended June 30, 2014. The unaudited financial statements, notes and MD&A pertaining to the period are available on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com and by visiting www.candax.com. All monetary figures reported herein are U.S. dollars unless otherwise stated.
Selected Operational & Financial Highlights
-- Production, net of royalties, for the quarter ended June 30, 2014 was 483 bopd compared to 457 bopd for the same period last year. The increase was a result of the improved production due to a successful workover campaign in the Ezzaouia field. In addition, the gas cycling program on the El Bibane asset continued to yield good results; -- The workover campaign on Ezzaouia to convert a number of wells from jet pumping extraction methodology to beam pump methodology was fully completed with the restart of Ezzaouia-9 on June 29, 2014; -- Revenue for the quarter ended June 30, 2014 was $8.2 million compared to $8.3 million for the same period last year. The revenue is recognized seasonally due to the seasonal time interval between oil liftings, which resulted in 81,112 barrels of oil being transported to market during the second quarter; -- The Company reported a loss for the quarter ended June 30, 2014 of $0.4 compared to a profit of $0.1 million for the same period last year. The difference relies on deferred tax adjustments recognized in 2013. The Company continues to improve its operating profit; -- As at June 30, 2014, Candax held cash and cash equivalents of $9.7 million; and -- As at June 30, 2014, Candax had loans and borrowings of $40.2 million with a current-portion of $6.5 million including $2.3 million of finance lease obligations over the new gas compressor;
"Our second quarter demonstrates the success of the workover campaign leading the Company to an overall stabilized production" said Pierre-Henri Boutant, CFO of Candax. "Candax shows operating profit and cash provided by its operating activities positioning the Company to start a new step of development."
Review of Key Operations
Candax has 100% ownership of El Bibane, 100% ownership of Robbana and 45% ownership of Ezzaouia, on which Candax has partnered with ETAP, the Tunisian state oil and Gas Company. El Bibane and Robbana are operated from Tunis by Ecumed, a 100% subsidiary of Candax. Ezzaouia is operated from Tunis by Maretap, a 50/50 joint venture between ETAP and Ecumed.
The installation, commissioning and performance test of the higher capacity compressor in the El Bibane field was completed in early April 2014. The performance test included a 24-hour running period at the designed injection rate of 11 mmscf/d. As per the Company program, the field was producing at that time at a rate of 7 mmscf/d of gas with a Condensate Gas Ratio ("CGR") between 32 and 36 bbls/mmscf, resulting in the production of over 240 bopd.
Taking into account the stabilized operating conditions since the commissioning (circa 8 mmscf/d gas production from EBB-5), it was decided in early July to move to a production plateau of 12 mmscf/d.
During the second quarter, production from the Ezzaouia asset increased to 232 bopd (net) from 193 bopd during the same period last year. This was a result of the successful completion of the workover program.
Maretap also plans to continue to perform geological and geophysical (G&G) studies within the field, which could confirm significant potential for recoverable reserves. Candax views its involvement in Maretap as a strategic benefit intended to gain access to high quality resources and expertise in Tunisia.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS
This press release includes "forward looking statements", within the meaning of applicable securities legislation, which are based on the opinions and estimates of Management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking statements.
Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Such risks and uncertainties include, but are not limited to, risks associated with the oil and gas industry (including operational risks in exploration development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections in relation to production, costs and expenses; the uncertainty surrounding the ability of Candax Energy Inc. to obtain all permits, consents or authorizations required for its operations and activities; and health safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the ability of Candax Energy Inc. to fund the capital and operating expenses necessary to achieve the business objectives of Candax Energy Inc., the uncertainty associated with commercial negotiations and negotiating with foreign governments and risks associated with international business activities, as well as those risks described in public disclosure documents filed by Candax Energy Inc. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of Candax Energy Inc. should not place undue reliance on these forward-looking statements. Statements in relation to "reserves" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described can be profitably produced in the future.
Candax is an international energy company with offices in Toronto and Tunis. The Candax group is engaged in exploration and the production of oil and gas in Tunisia and holds a royalty interest in an exploration permit in Madagascar.
Candax Energy Inc.