Cygam to Test Bhayra Rigo #1 at a Later Date

Cygam Energy says that production casing will be run in the Bhayra Rig #1 well on the Jorf permit to a total depth of approximately 1400 meters. Careful log evaluation by the Corporation, its partners and independent log experts indicates the presence of potential areas of interest in a thick Upper Permian dolomitized and fractured reef. At this time, Cygam and its partners are unable to determine whether hydrocarbons are or are not present in the potential areas of interest as a sudden circulation loss occurred when the reef was first encountered at 1126 meters. Circulation of drilling fluids was never re-established and drilling samples were not recovered over an approximate 300-metre interval. A core was cut in the lower portion of the zone confirming the presence of fractured and porous dolomite. Normally Cygam would test for the presence of hydrocarbons by conducting open-hole straddle tests in the selected intervals however, due to local safety regulations and other technical reasons, this cannot be done and testing of the well will be conducted at a later date through casing perforations. The Corporation will source all the necessary testing equipment and will provide an update on the actual timing of testing operations.

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).