Cygam Energy Inc.
TSX VENTURE : CYG

Cygam Energy Inc.

December 15, 2011 11:48 ET

Cygam Energy Inc.: Tunisian Operations Update

CALGARY, ALBERTA--(Marketwire - Dec. 15, 2011) - CYGAM Energy Inc. ("CYGAM" or the "Corporation") (TSX VENTURE:CYG) is pleased to provide an update on its Tunisian operations.

At Sud Remada, CYGAM's partner and Operator, Storm Ventures International, a subsidiary of Chinook Energy Inc ('Chinook"), has advised that it has completed the drilling, completion and workover operations on the TT structure within the Bir Ben Tartar concession with the release of the Ulysse rig on December 1. The Operator has advised that production from the field has averaged 2,400 bop/d gross (211 bop/d net) over the last seven days from four of seven oil wells with one well testing and two wells waiting on further completion and workover operations that will be completed early in 2012. The Operator estimates that the productive capacity of the field is approximately 2,700-2,800 bop/d from the existing wells.

Field operations were suspended prior to completion of the planned workovers, and production has been interrupted by periodic blockages and labour related grievances both of a general nature related to the political unrest in Southern Tunisia and specifically related to the Operator's operations. The Operator has advised that any issues related to the Operator's operations have been resolved allowing production to be ramped up to the capacity of the completed wells. The Operator advises that it is on track to resume field operations by the end of January with a program expected to include at least two vertical development wells, a first horizontal test well, the remaining two workovers and the first exploration test of a similar size prospect north of the TT structure on the Sud Remada permit.

About CYGAM Energy Inc.

CYGAM is a Calgary based exploration company with extensive international exploration permits and producing properties in Tunisia. The main focus of the Company 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 seven exploratory permits in Italy and three exploratory permits in Tunisia encompassing approximately 3.0 million gross acres. Visit the CYGAM website at www.cygamenergy.com for more information about CYGAM.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

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