Cygam Energy Inc.
TSX VENTURE : CYG

Cygam Energy Inc.

November 24, 2006 09:00 ET

Cygam Energy Inc. Provides Exploration Update for the Jorf Permit in Tunisia

CALGARY, ALBERTA--(CCNMatthews - Nov. 24, 2006) - Cygam Energy Inc. ("Cygam") (TSX VENTURE:CYG) is pleased to announce that it has completed the reprocessing of selected seismic lines in the Jorf permit and that a preliminary interpretation of over 2,000 kilometres of seismic data has been finalized.

The company has outlined two major separate anomalies within an extensive reef development area and is planning to conduct an additional 2D seismic program in order to finalize the precise location for a planned exploratory well. The two identified anomalies are interpreted as being reef build-ups of upper to lower Permian age, with significant thickness and lateral extent. Seismic parameters for this new 200 kilometres state-of-the-art seismic program have been finalized and a seismic crew operating in Tunisia has been selected. It is expected that seismic operations will commence in December, 2006. Once the new seismic data has been interpreted and integrated with the existing data, the company will make the final selection as to which anomaly will be drilled first. Cygam has presented its geological and geophysical interpretation to ETAP, the Tunisian State Oil Company, at a technical committee meeting held in Tunis in early October, and has received approval for the proposed seismic program and subsequent drilling.

The Jorf permit, located onshore south-central Tunisia, encompasses an area of approximately one million acres. The northern boundary of the exploration permit is within 35 kilometres of the Gulf of Gabes. Major oil and gas pipelines from the giant El Borma oil and gas field and other southern Tunisian oil fields traverse the Jorf block (within 10 to 40 kilometres from the two potential locations) and connect to the La Skhira oil terminal in the Gulf of Gabes.

The company, through its wholly-owned subsidiary, Rigo Oil Company Limited (Tunisia), has also commenced the tender process to select a drilling rig for one of the Jorf potential locations identified by the preliminary seismic interpretation. In order to avoid expected lengthy delays in obtaining casing, wellheads and related equipment, the company has already acquired sufficient drilling completion equipment for this well. It is expected that drilling operations will commence prior to August, 2007.

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 seismic and drilling plans, including but not limited to unavailability of equipment and manpower, and there is no certainty that the seismic and drilling programs 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 www.sedar.com.


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

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