ORONTO - Candax Energy Inc. (TSX:CAX) has tied in the platform at the EBB-4 oil and gas well off Tunisia to the export pipeline, but production will not begin until a three-well program is completed and a gas recycling system is installed.
Candax shares were down 17 per cent Tuesday after the news from the El Bribane project.
The company disclosed that "a considerable volume of water was lost into the EBB-4 well during the drilling of the horizontal section, which will need to be removed from the near-wellbore area by gas-lifting with the recompressed gas."
It said continuing unfavourable weather in January caused new delays, but installation of the EBB-5 platform is progressing, while drilling is underway at EBB-3, the final well in the program.
The full field development now is expected to be completed in March.
Candax also disclosed it has drawn a further US$29 million on its credit facility with Bank of Scotland, following a US$20-million drawdown in December.
Candax stock was down 13 cents at 62 cents Cdn Tuesday afternoon on the TSX, with a 52-week range between $1.00 and 39 cents.
Via [By THE CANADIAN PRESS]
