Cygam Energy Inc.
TSX VENTURE : CYG

Cygam Energy Inc.

January 03, 2007 09:00 ET

Cygam Energy Inc. Announces Participation by Exceed Capital Holdings Ltd. and Pennine Petroleum Corporation in the Seismic Program in the Jorf Permit, in Tunisia

CALGARY, ALBERTA--(CCNMatthews - Jan. 3, 2007) - Cygam Energy Inc. ("Cygam" or the "Corporation") (TSX VENTURE:CYG) is pleased to announce that Exceed Capital Holdings Ltd. ("Exceed") and Pennine Petroleum Corporation ("Pennine") have exercised their option to participate in a seismic program in the Jorf permit held by the Corporation in Tunisia. Under the terms of each option, Exceed and Pennine will each pay 15% of the cost of acquiring a new 200 kilometre seismic program in order to finalize the precise location for an exploratory well planned for 2007. Additionally, Exceed and Pennine will each pay 15% of drilling and completion costs to earn a 10% interest in the first identified drillable structure, with a further option to farm-in on drilling into other structures within the concession on the same terms.

Review of approximately 2,000 kilometres of existing seismic data outlined two major separate anomalies within an extensive reef development area. The two identified anomalies are interpreted as being reef build-ups of upper to lower Permian age, with significant thickness and lateral extent. Seismic parameters for the new 200 kilometres state-of-the-art seismic program have been finalized and a seismic crew operating in Tunisia has been selected. It is expected that seismic operations will commence in January, 2007. Once the new seismic data has been interpreted and integrated with the existing data, Cygam will determine which of the two anomalies will be drilled first.

The Jorf permit, located onshore south-central Tunisia, encompasses an area of approximately one million acres. The northern boundary of the exploration permit is within 35 kilometres of the Gulf of Gabes. Major oil and gas pipelines from the giant El Borma oil and gas field and other southern Tunisian oil fields traverse the Jorf block (within 10 to 40 kilometres respectively from the two potential locations) and connect to the La Skhira oil terminal in the Gulf of Gabes.

Seismic and drilling operations will be conducted through Cygam's wholly-owned subsidiary, Rigo Oil Company Limited (Tunisia). The tender process to select a drilling rig will be finalized shortly and Cygam has already acquired long delivery items such as wellhead, casing and related equipment. Drilling operations are expected to commence prior to August, 2007.

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 in carrying out the Corporation's seismic and drilling plans, including but not limited to unavailability of equipment and manpower, and there is no certainty that the seismic and drilling programs will be carried out when scheduled. The existence of discoveries in structures and formations in the regions where Cygam has permits does not necessarily assure that the company will be successful. 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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