CALGARY, ALBERTA -- (Marketwire) -- 02/06/13 -- CYGAM Energy Inc. ("CYGAM") (TSX VENTURE: CYG) is pleased to provide an operational update regarding the TT Field in the BBT Concession in Tunisia. Through a wholly-owned subsidiary, CYGAM holds a 14% working interest in the Concession. Partners in the concession are block holder, Enterprise Tunisienne D'Activites de Petrolieres ("ETAP") and Chinook Energy (86% interest and operator).
TT-10 Horizontal Well Initial Flow Rates
The TT-10 well is the fourth horizontal well test of the Ordovician Quartzite Reservoir on the Bir Ben Tartar Production Concession (the "BBT Concession"). Completion operations on TT-10 commenced on January 7, 2013 and, following an 11-stage fracture stimulation placing a total of 270,000 pounds of proppant, production testing began on January 12, 2013. Over the initial 19 day flow period the TT-10 well flowed an average oil rate of 618 barrels of oil per day ("bopd"), an average water rate of 516 barrels of water per day (44% water cut) and average gas-to-oil ratio of 1,039 standard cubic feet of gas per barrel of oil.
BBT Concession Production Update
Initial gross production ("IP") and current gross production data from the first three horizontal wells on the TT Field is as follows:
Cumulative IP (10 IP (30 IP (90 Dec 2012 Dec 2012 Production day) day) day) Oil Prod Water to YE 2012WELL On Production (bopd) (bopd) (bopd) (bopd) Cut (%) (barrels)----------------------------------------------------------------------------TT-16 July 21, 2012 857 801 704 450 8 98,775TT-13 Sept 15, 2012 3,251 2,563 1,779 976 40 176,815TT-11 Oct 27, 2012 1,473 897 632 519 44 46,766
December gross production from the BBT Concession was 3,512 bopd (309 bopd net to CYGAM and post ETAP) from seven vertical and three horizontal producers. Water cuts from the horizontal wells have stabilized at approximately 40% in three of the four wells, a much higher average than seen in the stimulated vertical wells. Plans for water injection into the main BBT reservoir are progressing and will be included into 2013 facility development. CYGAM's net share of gross production is approximately 8.8%, with ETAP paying the tax and royalties out of its share of profit oil.
2013 BBT Drilling Program and Sud Remada Permit Activity Update
CYGAM has budgeted for the drilling and completion of six horizontal development wells on the TT Field in 2013 with an anticipated commencement date of April 1, 2013.
In addition to the continuing development drilling on the TT Field, CYGAM will drill an exploration well on the Sud Remada Permit in 2013 targeting an Ordovician feature similar in size to the TT Field and will acquire a 250km2 3-D seismic survey on the southernmost portion of the Sud Remada Permit, which currently has very limited 2-D seismic data, in an attempt to pursue the regionally prolific Acacus oil fairway into the Permit.
About CYGAM Energy Inc.
CYGAM is a Calgary based exploration company with extensive international exploration permits and a producing property in Tunisia. The main focus of CYGAM 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 seven exploratory permits in Italy plus three exploratory permits and the BBT Production Concession in Tunisia which together encompass a total of approximately 2.7 million gross acres.
Forward Looking Information
In the interest of providing shareholders and potential investors with information regarding CYGAM, including management's assessment of the future plans and operations of CYGAM, certain statements contained in this news release constitute forward-looking statements or information (collectively "forward-looking statements") within the meaning of applicable securities legislation. In particular, this news release contains, without limitation, forward-looking statements pertaining to future drilling, operations (including the number of wells, locations and target zones), seismic acquisitions, water injection plans, strategies to increase water handling capacity and other future operations and the timing thereof.
With respect to the forward-looking statements contained in this news release, CYGAM has made assumptions regarding, among other things: the ability of the Operator to continue to operate in Tunisia with limited logistical, security and operational issues and the ability of the Operator to obtain equipment in a timely manner to carry out drilling and completion operations. Although CYGAM believes that the expectations reflected in the forward-looking statements contained in this news release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this news release, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the forward-looking statements will not occur, which may cause CYGAM's actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, without limitation: political and security risks associated with the Operator's Tunisian operations, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve and resource estimates, inability to retain drilling rigs and other services, capital expenditure costs, including drilling, completion and facilities costs, unexpected decline rates in wells, delays in projects and/or operations, wells not performing as expected, delays resulting from or inability to obtain the required regulatory approvals, CYGAM's ability to access sufficient capital from internal and external sources; and risks associated with the operation of CYGAM's assets by third parties, including the limited ability of CYGAM to exercise influence over the operation of those assets or their associated costs, the timing and amount of capital expenditures, the operator's expertise and financial resources, the approval of other participants, and the selection of technology and risk management practices. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the forgoing list of factors is not exhaustive.
Additional information on these and other factors that could effect CYGAM's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and CYGAM does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
CYGAM Energy Inc
President and Chief Executive Officer
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CYGAM Energy Inc
Chief Financial Officer
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