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Candax Provides Operational Update

Source: www.gulfoilandgas.com 10/19/2010, Location: Africa

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Candax Energy Inc. ("Candax") is pleased to announce that the El Bibane-3 well is producing from the newly installed production string. Oil production from the El Bibane-3 well has stabilized at about 130 bopd, with some 95% water-cut, production that is comparable to the overall volume of liquids that the well was producing prior to the well's tubing failure in 2009. The well is currently being gas-lifted with gas from the El Bibane-5 well. Gas-lift is being operated as a closed loop to minimize flaring, with all high-pressure gas being re-circulated.

Richard Norris, President & CEO, stated: "We are very encouraged by the volumes being produced at El Bibane and the evolution of the production parameters. Prior to the tubing failure, the El Bibane-3 well was producing under natural flow and we fully expect that the well will revert to this behaviour. It is, however, very hard to predict exactly when this will occur after more than one year shut-in."

On Ezzaouia, the work-over of the Ezzaouia-1 well has been completed and the well is currently cleaning up. The side-track of the Ezzaouia-2 well has been temporarily suspended due to mechanical difficulties with the rig's pump equipment. Whilst awaiting replacement parts the rig has been moved to the Ezzaouia-11 well location and the planned work-over commenced today. It is planned that operations will subsequently continue with the Ezzaouia-9 work-over then re-commence drilling at Ezzaouia-2 once the rig has been made fully operational. The Company will provide further updates when available.

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Related Categories: Diving Contractors  Dredging  FPSO Vessels and Equipment  General  Marine Services  Mooring Systems  Offshore Platforms  Subsea Production 

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