Cygam Energy Inc.
TSX VENTURE : CYG

Cygam Energy Inc.

December 23, 2010 09:15 ET

Cygam Energy Inc. Announces That the Sud Remada TT3 Exploration Well has Been Cased for Completion

CALGARY, ALBERTA--(Marketwire - Dec. 23, 2010) - CYGAM Energy Inc. ("CYGAM" or the "Corporation") (TSX VENTURE:CYG) is pleased to advise that the TT3 exploration well at Sud Remada has been cased to total depth (1,555 meters) and suspended awaiting completion in early 2011. The well was drilled on the 67 km2 TT structure with the primary targets being the Ordovician Jeffara and Bir Ben Tartar reservoirs that were originally encountered and proven productive in the TT2 discovery well located approximately 2.8 km to the northeast. Several cores were cut in the Ordovician Bir Ben Tartar formation as well as in the Silurian Tannezuft "hot shales" which will be assessed for their unconventional reservoir qualities. An extensive logging and wireline testing program using a modular dynamic tester (MDT) tool was undertaken over both the Ordovician and Silurian formations. Further detailed evaluation and completion planning are on-going. Completion operations are planned for mid to late first quarter 2011 and are expected to include a fracture stimulation of the Bir Ben Tartar formation which will involve the mobilisation of a specialized crew. 

The drilling of the TT3 well fulfills all the exploration requirements on the permit. Data from this well will be included in the Plan of Development which will accompany the request for the TT production concession and will be submitted to the Tunisian authorities in early January 2011. The next drilling operation on the Sud Remada permit will be the TT4 appraisal well, located approximately 6 km east of the TT3 well. CYGAM has been advised by the operator, Chinook Energy Inc., that commencement of drilling operations at this site is planned around the end of January 2011.

Six additional structures and several leads have been identified on the 1.2 million acre Sud Remada block. CYGAM will participate for its 14% direct working interest in all the appraisal, development and exploratory operations on the Sud Remada permit.

CYGAM is a Calgary based exploration company with producing exploration properties in Canada and Tunisia plus extensive international exploration permits. 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 Basin. CYGAM currently holds various interests in six exploratory permits in Italy and four exploratory permits in Tunisia encompassing approximately over 3.5 million gross acres (approximately 1.8 million net acres before pending farm-outs). Visit the CYGAM website at www.cygamenergy.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. In particular, various factors can cause delays or prevent the Corporation from carrying out its drilling and completion programs as scheduled, including but not limited to unavailability of equipment, funding and manpower or delays in the drilling of the TT4 appraisal well or that the TT3 completion program will be carried out when scheduled. The existence of discoveries in structures and formations in the regions where Cygam is drilling, and the previous testing of oil and gas flows in the same structure, does not necessarily assure that the company will be successful with its drilling and completion programs. Cygam does not undertake any obligations to update forward-looking statements except as required by applicable securities laws. 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.

Neither 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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