Candax

completed

Candax Energy Inc. (“Candax” or the “Company”) is a junior oil and gas company listed on the Toronto Stock Exchange with assets in Tunisia. IFC is considering an equity investment of up to CA$24 million in Candax to be used in order to finance its investment program which aims to enhance production from its mature asset base, consisting of (1) the operational shallow water offshore field El-Bibane, (2) the operational onshore fields Ezzaouia and Robbana, and (3) two additional shut-in onshore fields Al-Manzah and Belli (“the Project”). Candax is the operator of the El-Bibane, Robbana and Al-Manzah fields whereas Maretap, an equal partnership between Candax and the Tunisian national oil company ETAP, operates the Ezzaouia and Belli fields. The Company’s current production volume averages around 320 barrels of oil per day. Assets in Tunisia include:El-Bibane (73.8% working interest): Candax is the field operator. The field consists of three offshore unmanned well tower platforms, some 18 km offshore of Zarzis, south east Tunisia in the Gulf of Gabes in water depths of 7 m. Current production of liquids is from one well, one well is shut-in and the third well is used for gas injection for the optimization of reservoir liquid recovery. Liquids are sent to a central processing facility based in the industrial area of Zarzis port via an 8” subsea pipeline. Processed oil is transferred to a terminal operated by Maretap (a 50/50 joint venture between the Candax subsidiary, Ecumed and the Tunisian state owned oil company, ETAP) for export. The terminal is adjacent to the central processing facility. Final export is by ship from the Zarzis port. High pressure gas separated at the El-Bibane processing facility is recycled and sent back offshore for gas lift via a subsea 6” pipeline.Ezzaouia (31.4% working interest): Maretap is the field operator. An onshore field with 13 wells of which currently six are producing. Liquids are transferred to a central processing facility approximately 12 km north of Zarzis. Processed oil is transferred via a 10” pipeline to the Maretap terminal adjacent to the El-Bibane central processing facility.Robbana (80% working interest): Candax is the field operator. An onshore field located on the island of Djerba and consisting of one well with minimal above ground support facilities. Production resumed in early August 2011.Al-Manzah (75% working interest): Candax is the field operator. An onshore field located approximately 60 km from Tunis. The field was shut-in in 2007.Belli (50% working interest): Maretap is the field operator. An onshore field located adjacent to Al-Manzah. The field was shut-in in 1999. This investment is limited to these assets. Potential future work programs in Tunisia may include implementation of a waterflood program in the Robbana field, well work-overs and sidetrack drilling in the El-Bibane, Ezzaouia and Robbana fields and a 3D seismic acquisition campaign at El-Bibane.