Cygam Energy Inc.
TSX VENTURE : CYG

Cygam Energy Inc.

July 18, 2007 13:00 ET

Cygam Energy Inc. Provides Update on Operations in Tunisia and Italy

CALGARY, ALBERTA--(Marketwire - July 18, 2007) - Cygam Energy Inc. (TSX VENTURE:CYG) ("Cygam" or the "Corporation") announces that the surface location for the Bhayra Rigo #1 well on the Jorf permit has been constructed and that transport of the Great Walls drilling rig from its last drilling location in northern Tunisia is 85% complete. Rig up operations have commenced and the Corporation expects that drilling will start by the end of July. Cygam is also pleased to announce that a six month extension of the Jorf permit, to February 5, 2008, has been received from the Tunisian Department of Energy. The Bharya Rigo # 1 well will be drilled to approximately 2500 metres in order to test a large Permian age structure. A new 166 km 2D seismic program, acquired in early 2007, confirms the presence of several anomalies which have been interpreted as potential reef build-ups.

Cygam also reports that the exploration agreement for the Sud Tozeur exploration permit was officially signed in Tunis on July 5, 2007, between its wholly owned subsidiary, Rigo Oil Company Limited, and the Department of Energy. The Sud Tozeur exploration permit, located near the Algerian border and in close proximity to the Sabria and El Franig fields, covers an area of 4,380 square kilometres (1,082,283 acres) and carries a drilling commitment over a period of four years. In early 2007, the Corporation acquired 61 kilometres of new 2D seismic data on the permit to delineate a large Ordovician structure. Cygam currently holds a 100% working interest in the permit and has received expressions of interest from other companies to participate in the exploration on a promoted basis. A well may be drilled at Sud Tozeur in early 2008 pending final seismic evaluation and rig availability.

In Italy, additional testing of four zones of interest in the Posta Piana 1 has been completed. Limited amounts of gas were recovered from one of the middle Pliocene zones, at the same structural elevation as the sandstone unit which had tested 1.3 MMcf/d of gas from the Cervaro # 1 well, located approximately 200 metres away. It is postulated that some formation damage may have occurred during drilling and/or cementing operations in these thin bedded and low pressured sands. The Corporation will monitor the well for pressure build-up in the next few months and intends to compare the Posta Piana well performance with the limited officially released data available from nearby wells producing from similar low porosity sands.

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 basin. Cygam currently holds various interests in five exploratory concessions in Italy and four exploratory concessions in Tunisia encompassing approximately 4 million gross acres (approximately 2.7 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. In particular, various factors can cause delays or prevent the Corporation from carrying out the Bharya Rigo # 1 drilling program as scheduled, including but not limited to unavailability of equipment and manpower. 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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