CYGAM Energy Inc.
TSX VENTURE : CYG

CYGAM Energy Inc.

January 14, 2013 08:15 ET

CYGAM Terminates Previously Announced Private Placements

CALGARY, ALBERTA--(Marketwire - Jan. 14, 2013) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

CYGAM Energy Inc. (TSX VENTURE:CYG) ("CYGAM", or the "Company"), an emerging oil and gas company with interests in Tunisia and Italy, announces that, given the terms offered by the market, the board of directors of the Company has determined that it is not in the best interest of the Company or its shareholders to proceed with its previously announced non-brokered private placements of units and common shares.

CYGAM's CEO David Taylor commented "Whilst access to additional capital at this time would have allowed for more aggressive pursuit of new venture opportunities, it is noteworthy that the company expects to be fully funded, from existing resources and cashflows, for a very active forward programme on its existing assets. The approved 2013 firm programme in our Sud Remada permit, onshore Tunisia, includes the acquisition of 104 km of 2D seismic, 270 km2 of exploration 3D seismic, one exploration well and six horizontal, multi-fracked wells on the producing TT Field. This programme is expected to result in both expanding the prospective resource base in the permit as well as materially growing reserves and production over the course of 2013."

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 2.7 million gross acres.

Forward-Looking Information

In the interest of providing shareholders and potential investors with information regarding CYGAM, including management's assessment of the future plans and operations of CYGAM, certain statements contained in this news release constitute forward looking statements or information (collectively "forward-looking statements") within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook", "potential", "target" and similar words suggesting future events or future performance. In particular, this news release contains, without limitation, forward-looking statements pertaining to: funding of the Company's forward programme, including the sources thereof; the 2013 capital programme, including the number of wells and seismic activities; and impact of the 2013 programme on resources and reserves.

With respect to the forward-looking statements contained in this news release, CYGAM has made assumptions regarding, among other things: the receipt of regulatory approvals; current industry conditions; and the general economic conditions in North America, Tunisia, Italy and globally; future capital expenditure levels; future oil and natural gas prices; the ability to obtain equipment in a timely manner to carry out exploration and development activities. Although CYGAM believes that the expectations reflected in the forward-looking statements contained in this news release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this news release, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that predictions, forecasts, projections and other forward-looking statements will not occur, which may cause CYGAM's actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward looking statements.
These risks and uncertainties include, without limitation: political and security risks associated with the Tunisian operations; risks associated with the operation of CYGAM's assets by third parties, including the limited ability of CYGAM to exercise influence over the operation of those assets or their associated costs, the timing and amount of capital expenditures, the approval of other participants, and the selection of technology and risk management practices; risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve and resource estimates, the continued impact of shut-in production, environmental risks, competition from other producers, inability to retain drilling rigs and other services, capital expenditure costs, including drilling, completion and facilities costs, unexpected decline rates in wells, delays in projects and/or operations resulting from surface conditions, wells not performing as expected; delays resulting from or inability to obtain the required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the forgoing list of factors is not exhaustive. Additional information on these and other factors that could affect CYGAM's operations and financial results are included reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) and at CYGAM's website (www.cygamenergy.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and CYGAM does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Neither the 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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