Candax Energy Inc., an international energy company, reports a loss of $9.3 million ($(0.05) per common share) for the year ended December 31, 2007, compared to a loss of $11,000 ($0.00 per common share) for the year ended December 31, 2006. Included in the $9.3 million loss is a $4.9 million expense attributable to foreign exchange, due to the strength of the Canadian dollar which accounted for over 50% of the Company's before tax loss for the year.
Revenues of $12.9 million were earned from the sale of 170,470 barrels of oil. Production for year was 169,670 barrels of oil and, as was the case in 2006, no production was recorded from the El Bibane field. The El Bibane re-development project is currently being finalized following the completion of drilling of all three wells, and the commencement of production from EBB-4 in late March. Consequently, no revenue was recorded for Candax's share in the idled SEEB power generation facility, as its operation depends on gas production from the El Bibane field. As at December 31, 2007, Candax had cash and cash equivalents of $22.2 million.
Mike Wood, CEO, commented:
"Our 2007 results reflect expenses attached to our significant investment program at El Bibane and for the organizational restructuring earlier in the year. With the near term onset of full field production at El Bibane and associated high netback cash flow, Candax is expecting strong results in 2008 and is aggressively pursuing a number of new business ventures as well as further development and exploration drilling commencing in April and through the balance of the year."