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Wednesday, August 19, 2015
The Continued Listings Committee of Toronto Stock Exchange (TSX) has decided to delist Candax Energy’s common shares effective at the close of market on September 17. The delisting was imposed for failure by the company to meet the continued listing requirements of TSX.
Candax also revealed that the internal bid committee of Tunisia’s state-run oil firm ETAP decided not to proceed to the next sale of crude oil scheduled for end of September as no interesting offers were received. Therefore, ETAP will not present any commercial offer to Ecumed (Candax’s unit in Tunisia) and the next lifting will take place for an estimated quantity of 170,000 barrels by end of November.
The cash balance of the company as at end of August will be circa $0.9 million.
The net Candax share of crude oil in inventory as at end of July 2015, amounts to 66,000 barrels which represents an approximate value of $2.8 million at today’s Brent prices, rising to 106,500 barrels net Candax share by end of October, with a forecasted average monthly net production of 14,500 barrels.
Based on current business assumptions, and assuming that oil sales revenues are delayed until December 2015, the company would likely experience a cash shortfall by the end of October 2015. However the co mpany forecasts a positive cash balance at the end of 2015, once oil sales proceeds have been received.
Candax is actively working on options to pre-finance its crude oil inventory and its future account receivables.
Pierre-Henri Boutant, CFO and Interim CEO of the company noted that “the delisting comes as a result of the effect of low oil prices which have caused reduced revenues and inadequate working capital. As well, the Company’s financial condition, reduced price of its common shares, public float below $2 million are factors cited for the delisting by the TSX. Management will continue to seek for alternative options.”
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