Cygam Energy Inc.

Cygam Energy Inc.

July 29, 2009 09:00 ET

Cygam Energy Inc. Commences Licencing Process Towards Drilling the Elsa-2 Well in the Adriatic Sea, Italy

CALGARY, ALBERTA--(Marketwire - July 29, 2009) - Cygam Energy Inc. ("Cygam" or the "Corporation") (TSX VENTURE:CYG) is pleased to announce that it has completed a comprehensive Environmental Impact Assessment Report for the proposed Elsa-2 exploration well on the B.R268.RG permit. This document represents an important step in obtaining a drilling licence for the proposed well. The report was delivered to the Ministry of Environment which will verify the expected minimal environmental impact of the project and will then issue the initial drilling approval.

The B.R268.RG permit is located offshore Italy, in the central Adriatic Sea, and encompasses an area of approximately 31,300 acres (127 km2).

Seismic reprocessing and interpretation of 354 km of 2D data has confirmed the existence of a large structure ("Elsa structure") with closure of approximately 15 km2 at the intra-Cretaceous Maiolica reservoir level. Based on published reports, the Maiolica reservoir tested 2500 barrels of 34 degrees API oil and 3.5 million cubic feet of natural gas per day in the onshore ENI Miglianico-1 oil discovery, located approximately 10 kilometres west of the Elsa structure. Wireline logs from the Elsa-1 well, drilled into the Elsa structure in 1992, confirmed the presence of a 65 metres hydrocarbon column at that location.

A 3D Reservoir Simulation Study was completed in September 2008 by an Italian independent engineering company and DeGolyer and MacNaughton Canada Limited, an internationally recognized engineering company, is currently preparing a reserve report on the Elsa structure in accordance with National Instrument 51-101.

It is expected that drilling operations at the Elsa-2 site will commence in late 2010, subject to rig availability. The well is scheduled to be drilled to a total depth of 4700 metres using a jack-up rig, at a location approximately 7 km from the coast line in water depth of approximately 33 metres.

Cygam has a 60% working interest in the permit, inclusive of a 20% carried interest in the first well drilled on the block. The remaining 40% working interest is held by Petroceltic International plc.

CYGAM is a Calgary based exploration company with producing exploration properties in Canada and 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 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 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 drilling plans, including but not limited to unavailability of equipment and manpower, and there is no certainty that the drilling program 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

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

Contact Information