Vega Oil Acquires 2D Seismic Data Offshore Sicily

Cygam has announced the acquisition of a state of the art 2D marine seismic survey around and across the C.R148.VG permit operated by Cygam's wholly owned subsidiary, Vega Oil S.p.A. ("Vega").

Petroleum Geo-Services (PGS), a Norwegian geophysical company providing a broad range of seismic services, recently completed a non-exclusive 900 kilometers survey using new dual sensor "GeoStreamer" technology on behalf of Cygam and other industry partners.

Cygam committed to purchase a minimum of 200 kilometers of the entire program in order to better evaluate a large structure, named Aretusa and located in the central part of the permit, which has already been mapped with existing older-vintage seismic data. Cygam also intends to determine if there is a potential correlation with the Mila field, located some 45 kilometers to the north-west. The Mila field production tested the Triassic Taormina formation at 3,000 barrels of oil per day.

Vega has a 100% working interest in the C.R148.VG exploration permit, located offshore south-eastern Sicily in water depths of approximately 100 meters. Other companies active in the Mediterranean Basin have given Cygam some preliminary expressions of interest to participate in this permit on a joint venture basis.

Following processing and interpretation of this new seismic data, Vega plans to acquire a 3D seismic survey of approximately 100 square kilometers to further investigate the Aretusa structure and establish the exact drilling location for the proposed exploratory well.