Cygam Spuds Bhayra Rigo #1

Tunisia Fields
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Cygam Energy says that drilling of the Bhayra Rigo #1 well on the Jorf permit commenced on July 30, 2007. The exploratory well will be drilled to approximately 2,500 meters in order to test a large Permian age reef structure, which had been identified through the interpretation of older vintage seismic data. A new 166 km 2D seismic program, acquired at the beginning of 2007, confirmed the presence of this structure and of several other anomalies, also interpreted as potential reef build-ups. The well is expected to take until the end of August to reach the final depth.

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 kilometers 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 kilometers 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).

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