Cygam Energy Inc.

TSX VENTURE : CYG


Cygam Energy Inc.

April 02, 2014 19:09 ET

CYGAM Announces 2013 Financial Results and Annual Filings

CALGARY, ALBERTA--(Marketwired - April 2, 2014) - CYGAM Energy Inc. (TSX VENTURE:CYG) ("CYGAM", or the "Company"), an emerging oil and gas company with interests in Tunisia and Italy, has filed the annual consolidated financial statements, the related Management Discussion and Analysis ("MD&A") and additional information required to be filed pursuant to the requirements of the applicable securities laws. The Company has also filed its statement of reserves data and other oil and gas information as at December 31, 2013 pursuant to National Instrument 51-101. These filings may be viewed on the Company's web site (www.cygamenergy.com) or at www.sedar.com.

CYGAM's Q4 and annual results showed the impact of reduced production and oil sales arising from the TT Field that is contained within the Bir Ben Tartar ("BBT") Concession in the Sud Remada Permit.

Under the production sharing contract established for the Sud Remada Permit with the Tunisian state oil company, Enterprise Tunisienne d'Activities Petrolieres ("ETAP"), CYGAM holds a 14 percent working interest through its wholly owned subsidiary Rigo Oil Company Tunisia Ltd., in partnership with Storm Ventures International, a subsidiary of Chinook Energy Inc. ("Chinook"), who holds the remaining 86 percent working interest and operates.

Highlights of the quarter and year ended December 31, 2013

  • Gross production for the three months ended December 31, 2013 from the TT Field averaged 2,269 bopd (199 bopd CYGAM net, post ETAP); 2,596 bopd (228 bopd CYGAM net, post ETAP) for the year ended December 31, 2013;

  • Oil net revenue was $2,435,200 for the three months ended December 31, 2013; $8,979,870 for the year ended December 31, 2013;

  • Operating netbacks for the three months ended December 31, 2013 were $72.38 per barrel (on revenue of $116.02 per barrel with operating costs of $43.64 per barrel); $75.13 per barrel (on revenue of $110.85 per barrel with operating costs of $35.72 per barrel) for the year ended December 31, 2013;

  • Net loss of $661,904 in the fourth quarter of 2013 compared to net income of $222,315 in the fourth quarter of 2012; for the year ended December 31, 2013, the net loss was $5,019,377 compared to net income in 2012 of $1,131,795;

  • The December 31, 2013 results included impairment write downs of $2.4 million relating to the Sud Tozeur permit in Tunisia, and $1.6 million relating to the Sud Remada permit in Tunisia and the CR148 (Aretusa), Civitaquana and Montalbano permits in Italy.

A more detailed discussion of the results is included in the MD&A and report to shareholders, available on the Company's web site or SEDAR.

SELECTED FINANCIAL INFORMATION

Three Months ended December 31, Year ended December 31,
2013 2012 2013 2012
Oil revenue - Tunisia $ 2,435,200 $ 2,977,392 $ 8,979,870 $ 9,884,602
Other income (3,727) 898 2,428 2,440
2,431,472 2,978,290 8,982,298 9,887,042
Operating costs 915,924 768,536 2,893,228 2,504,381
General and administrative 432,113 653,295 2,391,765 2,136,643
Stock based compensation 23,504 206,474 103,061 349,191
Financing costs 44,873 18,979 142,849 59,925
Impairment write-down (recovery) 635,255 - 4,082,557 (305,766)
Loss (gain) on sale of exploration assets - - - 72,114
Exploration expense 93,809 - 639,698 161,496
(Gain) on sale of building - (118,258) - (118,258)
Depletion and depreciation 947,898 1,226,949 3,748,515 3,895,521
3,093,377 2,755,975 14,001,674 8,755,247
Net income (loss) (661,904) 222,315 (5,019,377) 1,131,795
per share - basic and diluted $ (0.03) $ - $ (0.04) $ 0.01

OPERATING

Three Months ended December 31, Year ended December 31,
2013 2012 2013 2012
Oil revenues $ 2,435,200 $ 3,917,130 $ 8,979,870 $ 9,884,602
Operating costs $ (915,924) $ (996,225) $ (2,893,228) $ (2,504,381)
Net operating income $ 1,519,275 $ 2,920,905 $ 6,086,642 $ 7,380,220
Depletion and depreciation $ 947,898 $ 1,597,706 $ 3,748,515 $ 3,895,521
Revenue per boe $ 116.02 $ 110.57 $ 110.85 $ 111.06
Operating costs per boe $ 43.64 $ 28.12 $ 35.72 $ 28.14
Operating income per boe $ 72.38 $ 82.45 $ 75.14 $ 82.92
  1. Net operating income and netback are non-IFRS measures. Net operating income and netback is defined as revenue less operating costs.
  2. Since ETAP pays all taxes and royalties from its share of production, net operating income is effectively after tax to the Company.

About CYGAM Energy Inc.

CYGAM is a Calgary based exploration company with extensive international exploration permits and a producing property in Tunisia. The main focus of CYGAM 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 five exploratory permits in Italy plus three exploratory permits and the BBT Production Concession in Tunisia which together encompass a total of approximately 2.6 million gross acres.

Neither the 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.

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