Cygam Energy Inc.
TSX VENTURE : CYG

Cygam Energy Inc.

March 30, 2010 17:10 ET

Cygam Energy Announces Closing of Equity Financing

CALGARY, ALBERTA--(Marketwire - March 30, 2010) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

CYGAM Energy Inc. ("Cygam" or the "Corporation") (TSX VENTURE:CYG) is pleased to announce that it has closed its short form prospectus offering (the "Offering") and has issued an additional 3,753,400 units of the Corporation ("Units") at a price of $0.60 per share for gross proceeds of $2.2 million. This closing is in addition to the 8,333,333 Units which were issued for gross proceeds of $5 million on March 17, 2010. Each Unit was comprised of one common share of the Corporation and one-half of one common share purchase warrant and each whole warrant entitles the holder to purchase one common share for $0.80 per share until September 30, 2011.

Octagon Capital Corporation, Byron Securities Ltd., Thomas Weisel Partners Canada Inc. and D & D Securities Company (the "Agents") acted as agents for the Offering. The Agents were paid a cash commission of 6.5% of the gross proceeds raised in respect of the sale of the Units issued pursuant to Offering and, in connection with the second closing of the Offering, were issued warrants to purchase an additional 187,670 Units which are exercisable at a price of $0.60 per Unit for a period of 18 months.

The net proceeds of the Offering are intended to be used by Cygam to fund work on its existing properties in Tunisia and Italy, and for working capital and general purposes. Management anticipates that the proceeds from the Offering will be sufficient to carry out planned activities onshore Tunisia, including drilling of two development wells at Sud Remada, one exploratory well at Bazma (subject to additional seismic interpretation and farmouts) and geophysical work at Sud Tozeur, plus potential extended production testing at the offshore Elsa well on the B.R268 permit and comprehensive geological and geophysical work on the offshore Aretusa permit in Italy. All these activities are expected to occur during 2010 and 2011.

Cygam is a Calgary based exploration company with producing oil and gas properties in Canada and Tunisia and extensive international exploration concessions. 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 3.5 million gross acres (approximately 1.8 million net acres before pending farmouts).

Forward Looking Statements

Certain statements contained in this release constitute forward-looking information. These statements relate to future events or the Corporation's future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on current beliefs or assumptions as to the outcome and timing of future events. Actual future results may differ materially. In particular, statements with respect to the use of proceeds from the Offering and planned exploration and development activities contain forward looking information. The Corporation's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website at www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. The Corporation disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

This news release does not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction. The common shares and warrants comprising the Units will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States, or to a U.S. person, absent registration, or an applicable exemption therefrom.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Cygam Energy Inc.
    Dario Sodero
    President and Chief Executive Officer
    (403) 802-6983
    (403) 802-6984 (FAX)
    or
    Cygam Energy Inc.
    Ali Rawji
    Chief Financial Officer
    (403) 802-6983
    (403) 802-6984 (FAX)