Candax Energy Signs El Bibane Rig Contract

Candax Energy Inc. has signed the drilling contract for the El Bibane re-development program offshore Tunisia. As previously announced, this full field re-development is designed to bring on two horizontal production wells with the drilling of a new development well (EBB-4), the re-completion of the existing well (EBB-3) and the installation of gas lift and reserves optimization investments.

The contract specifies a January 23, 2006 mobilization date, with the first well expected to spud by mid-February. Candax expects that El Bibane will be back on production by April 2006 and that this investment program should lead to significant increases of both reserves and production levels from the field.

Additionally, Candax also announces that the CTF-06 rig, previously contracted for drilling the Chaal-1 exploration well in Tunisia, has been released and is being mobilized to Chaal. The Chaal-1 well is expected to spud by the first week in February 2006. As previously announced, Candax has mapped a large prospect on the Chaal Permit, which could extend over an area of 300 square kilometers and has multi-Tcf potential.