Candax Reports Lifting Results, Adjustment to Lifting Methodology
November 16 2012 - 12:37PM
Marketwired
Candax Energy Inc. ("Candax") (TSX:CAX) announces that Entreprise
Tunisienne d'Activites Petrolieres ("ETAP"), the Tunisian
state-owned oil company completed a lifting of 150,410 barrels of
oil on October 30th on behalf of partners in the El Bibane,
Ezzaouia and Robbana fields. The price per barrel realized for the
Candax share of the lifting of $97.20 is based on the average Brent
oil price for the period November 1, 2012 to November 5, 2012 with
a discount of $8.77 for the Ezzaouia "melange" category of Brent.
The discount is primarily due to reduced refinery capacity due to
seasonal maintenance and ETAP commercialization fees.
The net volumes attributable to Candax are approximately 50,000
barrels. Of this volume, 16,000 barrels are subject to a
contractual Domestic Market Obligation discount of 10%. Proceeds of
approximately $4.9 million will be realized in mid-December.
Candax also announces that it has entered into an agreement with
ETAP, whereby liftings can be managed on behalf of Candax by ETAP
and that each lifting will be done on a pro-rata basis, the result
being that Candax will be able to realize revenues on its
proportionate share of each lifting. This lifting methodology will
simplify revenue recognition and allow Candax to realize revenues
on a more consistent and regular basis going forward.
Pierre-Henri Boutant, CFO of Candax commented, "We are pleased
to have adjusted the lifting methodology as the change will allow
much better transparency and stability with respect to revenue
recognition going forward."
About Candax
Candax is an international energy company with offices in
Toronto 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.
Contacts: Candax Energy Inc. John Younger President 416 368 9137
ext. 136jyounger@candax.com