TORONTO, ONTARIO -- (Marketwire) -- 03/28/13 -- 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 year ended December 31, 2012. The audited 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, increased in 2012 to 371 bopd from 251 bopd in 2011 as a result of production improvements on Ezzaouia and a successful gas cycling pilot project on El Bibane;-- Revenue for the year was $8.7 million compared to $14.3 million in 2011. The decrease in revenue reflects a revenue recognition policy whereby revenues are only recognized when inventory is sold. During 2012, Company crude oil inventory increased by more than 77,000 barrels which if sold would have put 2012 revenue higher than 2011 reflecting the higher production levels in 2012;-- Total Proven plus Probable Net Reserves (2P) of oil declined by 15.5% from the previous year to 2.95 MMbbls;-- The Company reported a loss for the year ended December 31, 2012 of $13.7 million ($0.01 per common share) compared to a profit of $0.5 million ($nil per common share) for 2011. The 2012 loss includes costs related to a workover on Robbana of $1.7 million, a well intervention on El Bibane of $0.6 million and two workovers on Ezzaouia totaling $4 million. In addition, the loss included an impairment charge on Al Manzah of $0.5 million. The profit in 2011 included a $7.8 million deferred tax credit;-- As at December 31, 2012, Candax held cash and cash equivalents of $5.7 million; and-- As at December 31, 2012, Candax had loans and borrowings of $29.5 million and current-portion of loans and borrowings of 3.4 million
"2012 marked a year where Candax established the building blocks for a long term sustainable organization that possesses a complementary mix between producing assets and the exploration prospects they fund," said Benoit Debray, Chairman and CEO of Candax. "These building blocks were evident not only on the ground with a fresh approach to production at El Bibane and Ezzaouia, but also from a talent acquisition standpoint, as we have assembled a world class geosciences team suited specifically to optimizing our portfolio of assets."
Review of Key Operations
During 2012, Candax consolidated its working interests for its main producing assets. As a result of these transactions, Candax now 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. The streamlining of the Company's ownership interests allows Candax to develop its fields according to its own vision of their potential. 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.