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Candax Announces Drilling Update on Chaal-1 Well

Source: www.gulfoilandgas.com 4/21/2006, Location: Africa

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Candax Energy Inc. has provided an update of the Chaal 1 well onshore Tunisia. Drilling operations have been completed and the well was drilled to a total depth (TD) of 4,600 metres, some 150 metres deeper than originally planned. TD was reached on April 16, 2006 and logging commenced on April 18, 2006. As announced on April 10, 2006, an intermediary logging run was planned once well control was re-established. However, as well control was eventually achieved at considerably higher mud weights than anticipated, the decision was taken to continue drilling to TD prior to logging.

Initial results of logging indicate that a gross reservoir interval of approximately 450 metres was penetrated in the Lower Nara, Jurassic formation, comprising limestone, argillaceous limestone and shale/claystone. Logging continues and the well test plans are being finalized with partners over the next few days.

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