Cygam Energy Inc.
TSX VENTURE : CYG

Cygam Energy Inc.

January 25, 2011 09:15 ET

Cygam Energy Inc. Commences Drilling of the TT4 Well at Sud Remada

CALGARY, ALBERTA--(Marketwire - Jan. 25, 2011) - CYGAM Energy Inc. ("CYGAM" or the "Corporation") (TSX VENTURE:CYG) is pleased to advise that drilling of the TT4 appraisal well at Sud Remada commenced on January 21, 2011, ahead of schedule. The TT4 well is located approximately 6 km south-east of the TT2 discovery well and approximately 7.6 km south-east of the recently cased TT3 well. The new appraisal location will be drilled to a total vertical depth of approximately 1,900 meters to evaluate an additional deeper prospective horizon which was not reached by the TT2 or the TT3 wells. The main target is Bir Ben Tartar Ordovician reservoir which has already produced in excess 100,000 barrels of sweet 44°API crude at TT2 on natural flow, without artificial stimulation, and has been assessed as a potential producing horizon from log evaluation at the TT3 location. Additional targets to be evaluated in the new well include the Triassic Tagi, the Silurian Acacus and Tannezuft formations, the Ordovician Jaffara and a new deeper target in the Cambrian.

CYGAM has been advised by the operator, Chinook Energy Inc., that plans to artificially fracture and evaluate the Ordovician reservoirs in the TT3 well are being finalized. A program to drill five additional development wells is currently also being finalized. In addition to the 67 km2 TT structure, six other structures, including the 74 km2 El Bell anomaly located approximately 17 km north-east of the TT2 discovery well, 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 also advises that its office in Tunis is open and operating as usual and that the demonstrations in the country have had no effect on its operations.

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 rig reaching total depth at the TT4 appraisal well or that the TT4 drilling program or 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 program. 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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