Cygam Energy Inc.
TSX VENTURE : CYG

Cygam Energy Inc.

April 20, 2009 09:00 ET

Cygam Energy Inc. Announces Preliminary Test Production Results on the Sud Remada TT2 Exploration Well in Tunisia

CALGARY, ALBERTA--(Marketwire - April 20, 2009) - Cygam Energy Inc. ("Cygam" or the "Corporation") (TSX VENTURE:CYG) is pleased to provide preliminary test production results from the TT2 oil discovery on the Sud Remada permit in southern Tunisia.

A successful workover was completed by the operator, Storm Ventures International Inc. ("Storm"), on this well during the month of February, 2009. Following the workover, test production facilities were set up on March 22, 2009, and test production commenced. The well is flowing from the Ordovician Bir Ben Tartar formation at a depth of 1422 meters. At the present time, the well is producing approximately 230 barrels per day of 43 degree API oil at well head pressure of 100 psi with average 1% water cut.

The oil is presently being trucked to the La Skhira oil terminal on the coast of Tunisia.

Storm's appraisal plan currently includes a 3D survey and a minimum of one step-out well that, together with the six month test, will be key to preparing a phased development plan for submission to the Tunisian authorities late in 2009. The TT2 well was drilled on a large Ordovician structure which has an aerial extent of approximately 70 square kilometers and a gross hydrocarbon column of approximately 57 meters.

Storm has advised that this light oil discovery has been assessed by an independent engineering firm and has assigned estimates of original oil in place to the overall structure. The discovery of light oil in a large structure at relatively shallow depths on the eastern side of the 1.2 million acre block confirms the presence of a mature source rock and effective hydrocarbon migration route increasing the chance of success for several other prospects identified on the block.

The Sud Remada permit is located in the Ghadames basin, close to the Libyan border. Cygam's working interest in the well and in the entire permit is 14%. Storm is the operator and has a 71% working interest; Madalena Ventures Inc. is also a partner with a 15% interest in the well.

Cygam is a Calgary based exploration company with producing oil and gas properties in Canada and extensive international exploration concessions. The main focus of the Corporation is the acquisition, exploration and development of international oil and gas permits, primarily in Italy, Tunisia and the Mediterranean region. Cygam currently holds various interests in six exploratory concessions in Italy and four exploratory concessions in Tunisia encompassing approximately 4 million gross acres (approximately 2.8 million net acres). Visit the Cygam website at www.cygamenergyinc.com for more information about Cygam.

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 and well 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. Cygam does not undertake any obligations to update forward-looking statements except as required by applicable securities laws. In particular, various factors can cause delays or prevent the operator from carrying out its production testing and development programs as scheduled, including but not limited to unavailability of equipment, funding and manpower or delays in the equipment reaching the Sud Remada permit. There is no certainty that the well will produce at the flow rates obtained during initial production tests. There is no certainty that the Sud Remada production testing and development programs will be carried out as scheduled or that they will be successful in establishing commerciality or that any future wells drilled on the structure will be successful. The structure is in an early stage of development and any current estimate of oil in place that may be reported by the operator may be subject to change as more data is obtained. 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.

Contact Information

  • Cygam Energy Inc.
    Dario Sodero
    President and Chief Executive Officer
    (403) 802-6983
    (403) 802-6984 (FAX)
    or
    Cygam Energy Inc.
    Ali Rawji
    Chief Financial Officer
    (403) 802-6983
    (403) 802-6984 (FAX)