Candax Energy Inc. announced an operations update and progress on the El Bibane oil field re-development project located offshore Tunisia. Throughout August and September 2006, Candax experienced additional contractor delays to the mobilization of the jack-up drilling barge to drill the three well redevelopment program at El Bibane.
During the entire period, Candax engineering staff, assigned to the shipyard on the Adriatic, have been assessing deficiencies and monitoring the contractor’s ability to meet revised timelines. Concurrently, alternate drilling solutions have been sought, but a suitable rig has not been secured due to the current tight rig market. In addition, Candax is evaluating engineering options that might provide the Company with an early production start-up, prior to implementation of the full redevelopment program.
The mobilization of support barges and vessels commenced in mid–September, and the main drilling barge unit is expected to be mobilized to Tunisia in the near future. The various units for the mobile offshore drilling unit (MODU) will be assembled at the Tunisian operations base, and additional components installed prior to receiving the final certification, this includes the top-drive for the rig and bases/feet for the jack-up legs. Candax does not expect the MODU to be at the first drilling location before November and drilling on EBB-4 should be completed by year end. Production start-up from EBB4 will commence shortly thereafter, with full field production anticipated by the end of first quarter 2007.
