Cygam Energy Inc.

Cygam Energy Inc.

January 25, 2010 09:00 ET

Cygam Completes 2D and 3D Seismic Programs in the Bazma and Sud Remada Permits, Tunisia

CALGARY, ALBERTA--(Marketwire - Jan. 25, 2010) - Cygam Energy Inc. ("Cygam" or the "Corporation") (TSX VENTURE:CYG) is pleased to announce that its wholly owned subsidiary, Rigo Oil Company Limited ("Rigo"), has completed a new 2D seismic acquisition survey of approximately 290 km on the Bazma permit. The survey, completed at no cost to Rigo, was conducted jointly with a large U.S. independent oil and natural gas company ("the U.S. Company") as per the terms of the Option and Farm-in Agreement ("the Agreement") announced on October 14, 2009. The seismic survey was designed to further delineate several deep-seated structures on the Bazma permit. Rigo is the operator of the permit, located onshore in central Tunisia and covering an area of 1,616 km2 (approximately 400,000 acres), and currently holds a 100% interest in all formations.

Under the terms of the Agreement, the U.S. Company will also reprocess existing 2D seismic data and will have the option to conduct a 3D seismic survey and to earn an interest by drilling a deep well on the permit. The U.S. Company brings significant in-depth experience in the exploration and development of similar prospects, which will be very beneficial to the evaluation and potential exploitation of any newly identified reservoir.

Cygam is currently finalizing a drilling program to test the shallower Triassic formation at the seismically defined Frida structure on the permit. Subject to rig availability, this well is scheduled to be drilled in mid-2010 to a total depth of approximately 2,500 metres at a location approximately 6 km from the Tarfa-1 producing well and in close proximity (5 km) to an existing pipeline. The U.S. Company has the option to participate in the costs of drilling such a well.

Cygam is also pleased to announce that a 175 km2 3D seismic program and a smaller 2D seismic survey were completed in late 2009 in the Sud Remada permit operated by Storm Venture International Inc. Data from the 3D seismic program will be used to finalize drilling locations for two appraisal wells on the large TT structure where the initial discovery well has been flowing light gravity oil since March 2009. The operator has advised that it plans to drill the first appraisal well in the second quarter and the second appraisal well in the last quarter of 2010, subject to rig availability.

Cygam is a Calgary based exploration company with producing exploration properties in Canada and extensive international exploration permits. The main focus of the Corporation is the acquisition, exploration and development of international oil and gas permits, primarily in Italy, Tunisia and the Mediterranean Basin. Cygam currently holds various interests in six exploratory permits in Italy and four exploratory permits in Tunisia encompassing approximately over 3.5 million gross acres (approximately 1.8 million net acres before pending farm-outs). Visit the Cygam website at for more information about Cygam.

This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding interpretation of seismic and well data, future plans and objectives of Cygam Energy Inc., are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated or expected in such statements. Cygam does not undertake any obligations to update forward-looking statements except as required by applicable securities laws. In particular, there is no assurance that a 3D seismic survey will be conducted or that a deep well will be drilled as the U.S. Company has an option and not an obligation to conduct such activities. As well, various factors can cause delays or prevent the operator from carrying out its production testing and development programs as scheduled, including but not limited to unavailability of equipment, funding and manpower or delays in the operations planned for the Bazma and Sud Remada permits. There is no certainty that all the seismic surveys will be completed, or that they will establish a drilling location, or that a well will be drilled, or that hydrocarbons will be discovered in commercial quantities on the permits. Important factors that could cause actual results to differ materially from Cygam's expectations are risks detailed herein and from time to time in the continuous disclosure filings made by Cygam with securities regulators on the System for Electronic Document Analysis and Retrieval (SEDAR) at

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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