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Candax Commences Ezzaouia Drilling Onshore Tunisia

Source: www.gulfoilandgas.com 7/30/2008, Location: Africa

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Candax Energy announced that the drilling of the onshore Ezzaouia 17 well commenced today. The well targets an un-drilled fault block in the east section of the field. Following the completion of the Ezzaouia 17 well, the rig will move to the second infill location, Ezzaouia 18, and following that well, it will move to Chaal.

In addition, the Company has completed its first equity tanker lifting of crude oil for 2008 during the last week of May lifting approximately 120,000 barrels net to Candax.

The Tunisian Government has confirmed the two year extension of the first exploration period of the Chaal Permit, with no additional work commitments. The drilling of the Chaal-1 side-track well and test program is scheduled to commence in late August / early September 2008.

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