CYGAM Energy Inc.
TSX VENTURE : CYG

CYGAM Energy Inc.

November 10, 2014 07:00 ET

CYGAM Announces Status of The Sud Tozeur Permit Sale Process

CALGARY, ALBERTA--(Marketwired - Nov. 10, 2014) - CYGAM Energy Inc. (TSX VENTURE:CYG) ("CYGAM", or the "Company"), an emerging oil and gas company with interests in Tunisia and Italy, announces that it has received a revised proposal from the Tunisian authorities regarding the sale process for the Sud Tozeur permit in Tunisia.

Sud Tozeur Exploration Permit (CYGAM 100%)

Further to our news release of August 28, 2014, Rigo Oil Company Limited ("Rigo"), a wholly owned subsidiary of CYGAM, submitted a revised proposal to the Tunisian authorities on September 11, 2014, in which Rigo and YNG Exploration Limited ("YNG"), a private company, proposed that a total of US$2.5MM of the penalty would be paid to the authorities upon transfer of the Sud Tozeur permit to YNG. Of this total, US$2.0 MM would be funded by YNG and the balance of US$0.5 MM by Rigo. The balance of US$2.5 MM would be paid by Rigo before the end of 2015.

Following informal feedback from the Tunisian authorities, a revised and final proposal was submitted to the Tunisian authorities on September 26, 2014. In this proposal, a total of US$2.5 MM of the Penalty would be paid to the authorities upon transfer of the Sud Tozeur permit to YNG. Of this total, US$2.0 MM would be funded by YNG and the balance of US$0.5 MM by Rigo. The balance of US$2.5MM would be paid by Rigo as follows;

  • US$0.5 MM by May 31, 2015
  • US$1.0 MM by September 30, 2015
  • US$1.0 MM by December 31, 2015

In addition, Rigo proposed to assign a share of its revenues from the BBT Concession as security for these deferred payments.

On November 7, 2014, the Tunisian authorities requested the following changes to our September 26, 2014, proposal:

  • US$2.5 MM to be paid by November 30, 2014
  • US$2.5 MM to be paid by March 31, 2015

In addition, the Tunisian authorities requested a bank guarantee for the US$2.5 MM due by end March, 2015 plus, in the event of default, a share of Rigo's revenues from the BBT Concession.

Rigo and YNG have scheduled a meeting with certain Tunisian authorities to discuss the situation and determine if a mutually acceptable way forward can be agreed.

As disclosed previously, the Company is pursuing strategic alternatives including, recapitalization, sale of assets, merger or outright sale of the Company. There can be no assurance that the Company will be successful in these initiatives or in its discussions with Tunisian authorities.

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 and Tunisia. CYGAM currently holds various interests in five exploratory permits in Italy plus two exploratory permits and the BBT Production Concession in Tunisia which together encompass a total of approximately 1.4 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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