Candax Energy Inc. has commenced drilling of the first well in the three-well development program on the El Bibane oil and gas field, offshore Tunisia.

The EBB-4 is being drilled using the West Titania jack-up rig. First oil and gas production from EBB-4 is expected by the first week of October 2007. Upon completion of EBB-4, the West Titania rig will move to the second well location, EBB-3RE2, to re-complete the existing well by drilling a new, horizontal production well in the oil column. It is anticipated that the completion of EBB-3RE2 should take approximately 30 days, when the rig will be moved to the final location, EBB-5, which will be used as a gas re-injection well. First gas injection is likely to commence early in

December. Michael Wood, President and CEO, commented, "We are extremely pleased that drilling has commenced on the El Bibane field. The EBB-4 well marks the commencement of our aggressive drilling program that we outlined at our recent Annual General Meeting. We look forward to further significant production increases from El Bibane in the third quarter and stabilized full field production by December."