Cygam Energy Inc.

Cygam Energy Inc.

May 29, 2012 16:40 ET

Cygam Announces Q1 Financial Results and Quarterly Filings

CALGARY, ALBERTA--(Marketwire - May 29, 2012) - CYGAM Energy Inc. (TSX VENUTRE:CYG) ("CYGAM", or the "Company"), an emerging oil and gas company with interests in Tunisia and Italy, has filed its Interim Financial Results and Management Discussion & Analysis for the three months ended March 31, 2012 pursuant to the requirements of the Canadian Securities Administrators. These documents may be viewed on the Company's web site ( or at

Under the Production Sharing Contract (PSC) 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.

CYGAM's Q1 results showed significant improvements in both production volumes and revenues over prior periods from Tunisian oil production from the TT Field that is contained within the Bir Ben Tartar ("BBT") Concession in the Sud Remada Permit. Strong pricing, excellent netbacks and cash flow from its Brent-priced Tunisian oil production resulted in CYGAM's first ever profitable period.

Highlights of the quarter

  • Gross production from the TT Field averaged 2,109 bopd (184.9 bopd CYGAM net, post ETAP) from seven wells;
  • Oil net revenue was $2,084,756 for the three months ended March 31, 2012;
  • Operating netbacks were $91.78 per barrel (on revenue of $120.99 per barrel with operating costs of $29.21 per barrel);
  • Income of $374,579 in the first quarter of 2012 increased from a loss of $401,587 in the first quarter of 2011;
  • two wells were drilled (the TT9 vertical development well in the BBT Concession and the BJA-2 exploration well in the Sud Remada permit, which was plugged and abandoned).
Three Months ended March 31 ,
2012 2011
Oil sales - Tunisia $ 2,084,756 $ 79,132
Other income 986 13,915
2,085,741 93,047
Operating costs 503,344 50,464
General and administrative 465,087 334,770
Stock based compensation 26,522 155,800
Financing costs 984 1,444
Realized gain (loss) on sale of marketable securities - (84,927 )
Depletion and depreciation 715,225 6,718
1,711,162 464,269
Net income (loss) from continuing operations 374,579 (371,222 )
Net loss from discontinued operations - (30,365 )
Net income (loss) $ 374,579 $ (401,587 )
Three Months ended March 31 ,
2012 2011
Oil revenues $ 2,084,756 $ 79,132
Operating costs $ (503,344 ) $ (50,464 )
Net operating income $ 1,581,412 $ 28,668
Depletion and depreciation $ 715,225 $ 6,718
Revenue per boe $ 120.99 $ 113.05
Operating costs per boe $ 29.21 $ 72.09
Operating income per boe $ 91.78 $ 40.95
(1) Net operating income and netback is a non-GAAP measure.
(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 producing properties in Tunisia. The main focus of the Company 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 seven exploratory permits in Italy and three exploratory permits in Tunisia encompassing approximately 2.7 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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