Year End Reserves
Candax also announced an update to its net reserves as at December 31, 2012. Total Proven plus Probable Reserves (2P) of oil declined by 15.5% from the previous year to 2.95 MMbbls.
It should be noted that the reserve levels of the Company's Ezzaouia asset increased and therefore the entire decline in 2P reserves can be attributed to a re-assessment of El Bibane.
The net present value (NPV) of the future cash flows (escalated price forecast, after tax and discounted at 10%) attributable to the 2P reserves is valued at $82.9 million (compared to $119.5 million in 2011). This 30.6% decrease is due entirely to the above-mentioned re-assessment of El Bibane.
The Company's independent engineering report was prepared by Ryder Scott Company Petroleum Consultants and encompasses all of Candax's producing properties in Tunisia. The report was prepared in accordance with NI 51-101 guidelines and additional disclosure on the reserves and valuations is included in Candax's Annual Information Form. The Company's Contingent Resources have not been updated from those reported in Company's AIF filed on SEDAR on April 8, 2008.
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 uncertain 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 an interest in an exploration permit in Madagascar.
403 218 2833
Candax Energy Inc.
416 368 9137 ext. 136
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