Candax Energy has announced that its subsidiary Candax Madagascar Limited will sell a 10 per cent working interest in Block 1101 onshore Madagascar to Oyster Oil & Gas
Candax Energy will continue to retain upside on the block through a share of future production royalties as well as certain future payments from Oyster Oil & Gas, company sources said.
The transaction is subject to government approval.
Benoit Debray, CEO of Candax Energy, said, “We are encouraged by the progress made in developing this world class exploration block and we are pleased to continue to participate in the upside.”
In November 2006 Candax Energy had signed a production sharing agreement (PSA) with the Madagascar government for the oil and gas rights of Block 1101 onshore in the north of the country and received presidential decree in 2007.
