Cygam Energy Inc.
TSX VENTURE : CYG

Cygam Energy Inc.

May 07, 2007 12:22 ET

Cygam Energy Inc. Announces Commencement of Drilling Operations at Posta Nuova, Italy

CALGARY, ALBERTA--(CCNMatthews - May 7, 2007) - Cygam Energy Inc. (TSX VENTURE:CYG) ("Cygam" or the "Corporation") is pleased to announce that drilling operations commenced on May 6, 2007, in the Posta Nuova permit in southern Italy.

The new well, named Posta Piana 1, will fulfill the drilling obligation for the Posta Nuova permit which was officially awarded to the Corporation on October 3, 2006. The well is located in the Puglia region of southern Italy, along a trend of several onshore gas fields (Candela-Palino, Monte Stillo, San Salvo-Cupello, etc.). Cygam acquired and re-interpreted available 2-D seismic data in order to confirm the size of the structural target where a former operator drilled a well in 1993. That well, Cervaro 1, tested gas at a rate of 1.3 MMcf/d from a middle Pliocene sand at a depth of approximately 950 metres. The Posta Piana 1 well is located approximately 200 meters away from the Cervaro 1 well, on a seismic defined structural high, and will be drilled to a minimum total vertical depth of 1,000 metres, to test the primary middle Pliocene sandstone target. Additional shallower sandstone reservoirs will be tested as well, pending log evaluation. In the event of geological success, additional development locations will be considered.

Cygam's has a 100% working interest in the Posta Piana 1 well, subject to a 20% free carried interest to production point if commercial production is established.

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 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. In particular, various factors can cause delays or prevent the Corporation from carrying out the Posta Piana 1 drilling program as scheduled, including but not limited to unavailability of equipment and manpower. The existence of discoveries in structures and formations in the regions where Cygam is drilling, and the previous testing of gas flows in the same structure, does not necessarily assure that the company will be successful with its drilling program. 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 www.sedar.com.

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

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