Candax Energy Inc. reports that as a result of an unexpected closure of the down-hole safety valve in the El Bibane 3 well and the subsequent failure to recommence production from the well after the valve was reopened, the Company's operations team in Tunisia has conducted a program of testing to determine the cause of the problem.

It has become clear that further tests are necessary that will require wire-line and possibly coiled tubing investigation. These investigations will take place from the jack-up barge that has been contracted by Candax, initially to work-over El Bibane 4 in order to reduce the water production from that well and which will then proceed to El Bibane 3.

The barge is scheduled to arrive in the field around August 25 and has been contracted for a minimum 14 days. All production from El Bibane has been shut-in pending, at least, the completion of the intervention on El-Bibane 4.

Tags: Candax Energy Inc.