TORONTO, ONTARIO -- (Marketwired) -- 08/09/13 -- 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 June 30, 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 June 30, 2013 was 457 bopd compared to 321 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, which was partially offset by the loss of production due to a workover campaign in the Ezzouia field;-- Revenue for the quarter ended June 30, 2013 was $8.3 million compared to $3.8 million for the same period last year. The increase in revenue was due to the seasonal time interval between oil liftings, which resulted in 88,237 barrels of oil being transported to market during the second quarter;-- The Company reported a profit for the quarter ended June 30, 2013 of $nil compared to a loss of $1.9 million for the same period last year. The improvement in profit was due in part to the timing of the lifting and a deferred tax credit;-- As at June 30, 2013, Candax held cash and cash equivalents of $10.6 million;-- As at June 30, 2013, Candax had loans and borrowings of $33.9 million with a current-portion of $3.2 million;-- A workover campaign is currently underway on the Ezzouia asset's EZZ-9, EZZ-17 and EZZ-1 wells. The EZZ-1 workover has been completed and is on track to commence production in the coming days; and-- As previously announced, Candax has entered into an agreement with Oyster Oil & Gas Limited to sell its 10% interest in Madagascar Block 1101. The transaction has received initial government approval but is subject to final due diligence and is expected to close in the third quarter of 2013.
"Our second quarter was highlighted by our ongoing work program designed to boost Candax's overall production and reserves over the near-term," said Benoit Debray, Chairman and CEO of Candax. "We are currently in the midst of completing four workovers on our Ezzouia and Belli assets and will be acquiring a second gas compressor for our El Bibane asset later this year. We expect this to result in a near doubling of condensate production at El Bibane, the possible reopening of the Belli field, and a verification of remaining reserves at Ezzouia. These initial steps are the start of our broader plan to solidify a 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.