Cygam Energy Inc.
TSX VENTURE : CYG

Cygam Energy Inc.

September 07, 2007 14:33 ET

Cygam Energy Inc. Provides Update on Operations in Tunisia

CALGARY, ALBERTA--(Marketwire - Sept. 7, 2007) - Cygam Energy Inc. ("Cygam" or the "Corporation") (TSX VENTURE:CYG) announces that production casing will be run in the Bhayra Rigo #1 well on the Jorf permit to a total depth of approximately 1400 metres. Careful log evaluation by the Corporation, its partners and independent log experts indicates the presence of potential areas of interest in a thick Upper Permian dolomitized and fractured reef. At this time, Cygam and its partners are unable to determine whether hydrocarbons are or are not present in the potential areas of interest as a sudden circulation loss occurred when the reef was first encountered at 1126 metres. Circulation of drilling fluids was never re-established and drilling samples were not recovered over an approximate 300-metre interval. A core was cut in the lower portion of the zone confirming the presence of fractured and porous dolomite. Normally Cygam would test for the presence of hydrocarbons by conducting open-hole straddle tests in the selected intervals however, due to local safety regulations and other technical reasons, this cannot be done and testing of the well will be conducted at a later date through casing perforations. The Corporation will source all the necessary testing equipment and will provide an update on the actual timing of testing operations.

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 40 kilometres from the Bharya Rigo # 1 well) and connect to the La Skhira oil terminal in the Gulf of Gabes.

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 Bhayra Rigo # 1 casing and testing 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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