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Candax Reports on Ezzaouia Remedial Work

TORONTO, ONTARIO -- (Marketwire) -- 11/23/12 -- Candax Energy (TSX:CAX) is pleased to report that the remedial campaign on Ezzaouia has been successfully completed by the operator Maretap. Maretap is a 50/50 joint venture managed by ETAP (the Tunisian national oil company) and Ecumed (100% subsidiary of Candax). The five month campaign included remedial actions conducted on several Ezzaouia wells in order to eliminate scale deposit in the production tubing and at the jet pump level. Five producer wells are now back in production and we expect Ezzaouia-1 to resume production in the coming weeks.

Production Manager, Jamil Hamza, stated that: "We are very pleased by the results of the remedial campaign and increased production and wish to congratulate the Maretap teams for this important step forward."

The rig is in the process of being de-mobilized on Ezzzaoia-1 well and civil work will shortly commence in preparation for the implementation of the sucker rod pump. It should be noted we are optimistic that the change in activation methodology on Ezzaouia-1 from jet pump to sucker rod should better optimize the production from this well and may prove as a template for changes in the activation methodology used on other Ezzaouia wells in the future. We expect production from Ezzaouia-1 to re-commence in the second half of December.

An additional work-over was also successfully performed on the Ezzaouia-2 well in order to cure a recent leak caused by some sour Zeebag formation fluid on the upper part of the 7" liner. Production levels on Ezzaouia-2 have reached as high as 186 barrels per day and the oil water cut continues to improve.

As a result of the work over and the jet-blasting campaign, the total Ezzaouia field daily production is now approximately 750 barrels per day, a significant improvement from production levels before the projects were undertaken.

On top of these curative actions several studies for new activation methods and scale inhibition are being conducted and should quickly lead to a better control of the scale creation and deposit issues and will improve longer term decline rates.

Ongoing G&G studies conducted jointly by the partners and the operator are aiming to identify additional production through the implementation of side tracks and other methods to access remaining oil behind the pipe of existing wells. These various corrective actions and additional studies should lead to a gradual increase of production in the forthcoming months.

About Candax

Candax is an international energy company with offices in Toronto 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
John Younger
President
416 368 9137 ext. 136
jyounger@candax.com

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