TORONTO, ONTARIO -- (Marketwired) -- 05/13/13 -- 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 quarter ended March 31, 2013. 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 March 31, 2013 was 472 bopd compared to 241 bopd for the same period last year. The increase was a result of the implementation of a successful gas cycling production process on the El Bibane asset;-- Revenue for the quarter ended March 31, 2013 was $nil compared to $1.9 million for the same period last year. The decrease in revenue was due to the seasonal time interval between oil liftings, which resulted in no produced oil being transported to market during the first quarter.-- The Company reported a loss for the quarter ended March 31, 2013 of $1.9 million compared to a loss of $3.4 million for the same period last year. $0.5 million of the Q1 2013 loss was as a result of a deferred tax loss. The decreased loss was a result of lower well remediation costs than the prior year period.-- As at March 31, 2013, Candax held cash and cash equivalents of $4 million; and-- As at March 31, 2013, Candax had loans and borrowings of $31.5 million with a current-portion of loans and borrowings of 3.3 million.
"Our first quarter was characterized by our ongoing work program, which is highlighted by our plan to complete four workovers on our Ezzouia and Belli assets during the coming months," said Benoit Debray, Chairman and CEO of Candax. "These workovers will boost production and verify the asset's remaining reserves at Ezzouia, as a well as allow us to reopen the Belli field and test its Bou Dabbous formation. This activity represents the initial steps in our broader plan of solidifying a solid base of cash-yielding assets that are able to fund future exploration programs."
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.
The encouraging results of the gas-cycling pilot program, which commenced in May 2012, increased production by 30% on a quarter over quarter basis. The success of this program has subsequently enabled the design and planning of the next phase, which will be executed in two steps. The first step will be to increase the gas recompression facilities at the El Bibane onshore Central Processing Facilities (CPF) in order to facilitate the near doubling of condensate production from the field. The Company expects a production rate for the last quarter of 2013 of more than 400 barrels of condensate per day. Current production beginning of 2013 is already above 250 bopd.