Cygam to Deepen Bhayra Rigo Well in Tunisia

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Cygam Energy has terminated testing of two intervals in the dolomitized and fractured upper reef zone where circulation loss had occurred during drilling. Recovery from the tests consisted of mixed drilling fluids and formation water. After review of seismic and well data, Cygam and its partners have decided to deepen the Bhayra Rigo # 1 well by approximately 300 meters to test a lower reef unit.

Upon completion of drilling operations, Cygam and its partners will have the option to renew the Jorf permit for an additional 2.5-year period. Data gathered from the exploratory well, together with seismic review, will be used to assess the potential of several un-drilled Permian structures, which have been identified on this very large but sparsely drilled permit.

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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