Cygam Energy Inc.
TSX VENTURE : CYG

Cygam Energy Inc.

September 17, 2008 09:00 ET

Cygam Energy Inc. Confirms Oil Discovery Following Positive Test Results in the Sud Remada TT2 Exploration Well in Tunisia

CALGARY, ALBERTA--(Marketwire - Sept. 17, 2008) - Cygam Energy Inc. (TSX VENTURE:CYG) ("Cygam" or the "Corporation") is pleased to provide results on the TT2 exploratory well drilled on the Sud Remada permit in southern Tunisia.

In a previous press release dated July 24, 2008, Cygam announced that production testing on two intervals in the Ordovician Bir Ben Tartar formation in the TT2 exploratory well had resulted in combined flow rates of approximately 300 barrels of oil per day of 45 degree API oil and 200 thousand cubic feet of associated gas and with varying water cuts.

The Corporation is pleased to announce that additional production testing conducted on the exploratory well indicates the load water from the initial artificial fracturing operations has been largely recovered. The additional production testing also indicates test rates similar to those previously announced in the July 24th press release, comprised primarily of light oil with low associated gas and water cuts. Additional testing on one of two up-hole secondary formations did not result in significant initial hydrocarbon inflow and additional studies will be conducted on these formations in subsequent wells.

The TT2 well was drilled on a large structure, with an areal extent of approximately 70 square kilometers, which had the Ordovician as the primary formation of interest. The discovery of light oil in this significant 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.

Storm Ventures International Inc. ("Storm"), the operator of the Sud Remada permit, is currently preparing an application for a permit to place the well on production for an extended six month production period during which the parties will be entitled to produce and sell the oil. The Corporation believes the reservoir could be an ideal candidate for the application of horizontal drilling technology for the future development plans for the block. A development plan for submission to ETAP, the Tunisian National Oil Company, will be discussed among the Sud Remada partners in the near future. The plan may include a 3D seismic program to further delineate the new discovery and the implementation of a horizontal appraisal drilling program.

The Sud Remada permit is located in the Ghadames Basin and is approximately 1.2 million acres in size. 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 five 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. 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)
    Website: www.cygamenergyinc.com