CALGARY, ALBERTA -- (Marketwire) -- 02/26/13 -- CYGAM Energy Inc. (TSX VENTURE: CYG) ("CYGAM", or the "Company"), an emerging oil and gas company with interests in Tunisia and Italy, announced today that InSite Petroleum Consultants Ltd. of Calgary, Alberta, ("InSite") has completed the annual update to CYGAM's Reserve Report for the Bir Ben Tartar Concession ("the Concession") in the Sud Remada Permit in Tunisia, effective December 31, 2012 (the "Report"). The Report was prepared in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the Canadian Oil and Gas Evaluation Handbook ("COGEH"). The report is based on InSite's review of technical data including geology, geophysics and reservoir. CYGAM holds a 14% interest in the Concession which contains the TT Field and a 14% interest in the Sud Remada Permit.
The Company's production from the Concession is governed by a production sharing agreement ("PSA") with ETAP, the Tunisian national oil company. All amounts set forth herein relate to CYGAM's net share, after ETAP participation and taxes, and are reported in Canadian dollars.
Year-End 2012 Reserves
Based on a static, volumetric geological model developed by a third party, InSite evaluated the total TT Field to contain an estimated total Discovered Petroleum Initially in Place ("DPIIP") of 201.7 million barrels, which is an increase of 31% from the 153.7 million barrels estimated at the end of 2011. The difference is a result of revised petrophysical analysis of the reservoir properties based on new data acquired during 2012.
The following summarizes the changes in CYGAM's net reserves:
----------------------------------------------------------------------------Oil Reserves (barrels) December 31, December 31, 2012(1) 2011(2) Increase----------------------------------------------------------------------------Proved 430,200 283,900 52%----------------------------------------------------------------------------Proved plus Probable 807,100 547,100 48%----------------------------------------------------------------------------Proved plus Probable plus Possible 1,180,100 873,900 35%----------------------------------------------------------------------------(1) Information derived from the Report.(2) Information derived from a report (the "2011 Report") prepared by InSite dated December 31, 2011, which was prepared in accordance with NI 51-101 and COGEH.
Following 2012 net CYGAM production of 89,762 barrels, reserves replacement ratios are as follows:
----------------------------------------------------------------------------Proved 263%----------------------------------------------------------------------------Proved plus Probable 390%----------------------------------------------------------------------------Proved plus Probable plus Possible 441%----------------------------------------------------------------------------
