Candax Grapples with El-Bibane

CANDAX ENERGY INC, THE CANADIAN Independent, continues to experience difficulties in the redevelopment of its El Bibane oil field offshore Tunisia. Additional contractor delays to the mobilization of the jack-up drilling barge to drill the three well redevelopment programme at El Bibane were cited as reason behind continued change of the drilling date. Alternate drilling solution arrangements are subject to rig availability in the current tight rig market. The company is however evaluating engineering options that might provide it with an early production start-up, prior to implementation of the full redevelopment programme. The mobilization of support barges and vessels commenced in mid—September 2006, and the main drilling barge unit would be mobilized to Tunisia on a later date. The various units for the mobile offshore drilling unit (MODU) will be assembled at the Tunisian operations base, and additional components installed prior to receiving the final certification, including the top-drive for the rig and bases/feet for the jack-up legs. Production start-up from EBB4 is still expected to commence towards year end, with full field production anticipated by the end of first quarter 2007.