Cygam Energy Inc.
TSX VENTURE : CYG

Cygam Energy Inc.

September 05, 2007 12:23 ET

Cygam Energy Inc. Receives Final Ministerial Approval for the Civitaquana Permit in Italy

CALGARY, ALBERTA--(Marketwire - Sept. 5, 2007) - Cygam Energy Inc. (TSX VENTURE:CYG) ("Cygam" or the "Corporation") is pleased to announce that its wholly owned subsidiary, Vega Oil S.p.A., received the final ministerial approval for the Civitaquana exploration permit. The official decree was published in the monthly Italian Hydrocarbon Bulletin of August 2007, which was issued on September 1, 2007.

Vega is the operator and has a 60% working interest in the Civitaquana permit. In addition, Cygam has acquired a 5% carried interest in all exploratory costs, including drilling of the first well. This onshore permit is located in the Marche-Abruzzi Basin of central Italy, west of the onshore Miglianico discovery wells and west of the B.R268.RG Permit, located offshore in the Adriatic Sea. The permit is 615.37 square kilometres in size (152,056 acres) and will be valid for a period of six years. Cygam is committed to purchase and reprocess approximately 100 kilometres of seismic data and acquire approximately 60 kilometres of new 2D seismic data within the first 12 months from official approval. If seismic interpretation validates the preliminary assessment of the permit potential, the Corporation will have to commit to drilling a well to a total vertical depth of approximately 4,500 metres within 48 months.

Three primary targets are believed to exist on the Civitaquana block: a Miocene calcarenite at a depth of approximately 1,500 metres, the intra-Cretaceous Maiolica Formation (which tested 2,500 barrels of light oil per day and 3.5 million cubic feet per day of natural gas in the Miglianico discovery well) and the under-laying Jurassic carbonates of the Massiccio Formation. An additional objective is the upper Cretaceous Scaglia Formation, which can be encountered at drilling depths of approximately 2,500 to 3,000 metres. Existing seismic lines suggest the possibility of large structures and stratigraphically controlled prospects.

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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