Chinook Drills Exploration Well in Tunisia

CYGAM Energy Inc. advised that drilling of the BJA-2 exploration well in the Sud Remada Permit commenced on March 20, 2012.

The BJA-2 well will be drilled to a total vertical depth of approximately 5,184 feet (1,580 meters) MD to evaluate the hydrocarbon potential of a new large structure, named Bir Jaouacha, located approximately 11 miles (17 kilometers) north-west of the producing TT structure in the Bir Ben Tartar production concession within the Sud Remada permit.

The main targets of the BJA-2 well are the Bir Ben Tartar and Lower Jeffara Formations of lower Ordovician age, which are the same reservoirs that produce oil in the TT structure.

An extensive coring program of approximately 197 to 262 feet (60 to 80 meters) in length is planned in the Lower Jeffara and Bir Ben Tartar reservoir formations.

The TT structure, located within the Bir Ben Tartar production concession in the Sud Remada Permit, is currently producing an average of 2,000 bopd from 7 wells (from TT-2 to TT-8). One additional appraisal well (TT-9), drilled in early 2012 as the initial well of a planned 11 well development program, is currently being completed.

CYGAM will participate for its 14 percent direct working interest in the BIA-2 exploration well which is being drilled by Chinook Energy Inc.

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