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Candax Reports Update on Ezzaouia Wells

TORONTO, ONTARIO -- (Marketwire) -- 12/28/12 -- Candax Energy (TSX:CAX) announces a return to production on its Ezzaouia-1 well. Candax also announces a setback relating to its Ezzauoia-9 and Ezzaouia-17 wells.

Following the previously announced work-over on Ezzaouia-1 and the conversion to beam pump and sucker rod methodology for extraction, the well is now producing at 93 bopd in addition to 30 barrels of completion water. The oil production is steadily rising and is performing well in line with expectations.

However, Ezzaouia-9 and Ezzaouia-17, representing approximately 23.5% of Candax's total net production of approximately 575 bopd (average daily production for November) have stopped producing and will likely require full work-overs to address tubing integrity issues to be brought back into production. Depending on equipment availability and discussions with partner ETAP (the Tunisian national oil company), the partners could also decide to change the activation method and switch to the beam pump and sucker rod methodology which has successfully been implemented on Ezzaouia-1.

About Candax

Candax is an international energy company with offices in Toronto and 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. 136
jyounger@candax.com

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