News Column

CYGAM Announces 2012 Financial Results and Annual Filings

Apr 4 2013 12:00AM

Marketwire

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CALGARY, ALBERTA -- (Marketwired) -- 04/04/13 -- CYGAM Energy Inc. (TSX VENTURE: CYG) ("CYGAM", or the "Company"), an emerging oil and gas company with interests in Tunisia and Italy, has filed the annual consolidated financial statements, the related Management Discussion and Analysis ("MD&A") and additional information required to be filed pursuant to the requirements of the applicable securities laws. These filings may be viewed on the Company's web site (www.cygamenergy.com) or at www.sedar.com.

CYGAM's Q4 and annual results showed continued significant improvements in both production volumes and revenues over prior years arising from the TT Field that is contained within the Bir Ben Tartar ("BBT") Concession in the Sud Remada Permit. Strong pricing, excellent netbacks and cash flow from its Brent-priced Tunisian oil production resulted in CYGAM's continued profitability in the fourth quarter and for all of 2012.

Under the production sharing contract established for the Sud Remada Permit with the Tunisian state oil company, Enterprise Tunisienne d'Activities Petrolieres ("ETAP"), CYGAM holds a 14 percent working interest through its wholly owned subsidiary Rigo Oil Company Tunisia Ltd., in partnership with Storm Ventures International, a subsidiary of Chinook Energy Inc. ("Chinook"), who holds the remaining 86 percent working interest and operates.

Highlights of the quarter and year ended December 31, 2012

-- Gross production for the three months ended December 31, 2012 from the TT Field averaged 4,032 bopd (354 bopd CYGAM net, post ETAP) from eleven wells; 2,797 bopd (245 bopd CYGAM net, post ETAP) for the year ended December 31, 2012;-- Oil net revenue was $3,917,130 for the three months ended December 31, 2012; $9,884,602 for the year ended December 31, 2012;-- Operating netbacks for the three months ended December 31, 2012 were $82.45 per barrel (on revenue of $110.57 per barrel with operating costs of $28.12 per barrel); $82.92 per barrel (on revenue of $111.06 per barrel with operating costs of $28.14 per barrel) for the year ended December 31, 2012;-- Income of $289,116 in the fourth quarter of 2012 increased from a loss $6,700 in the fourth quarter of 2011; for the year ended December 31, 2012, income has increased to $1,131,795 compared to a loss in 2011 of $1,991,109;-- in October the Tunisian authorities approved extension of the expiry dates on the Bazma and Sud Tozeur permits to July 26, 2016 for Bazma and May 12, 2014 for Sud Tozeur;-- In Italy, a new law was passed modifying the previous drilling moratorium which, subject to approval by the relevant authorities, allows activities on CYGAM's offshore Elsa discovery and Aretusa prospect to proceed.



SELECTED FINANCIAL INFORMATION

---------------------------------------------------------------------------- Three Months ended Year ended December 31, December 31, 2012 2011 2012 2011----------------------------------------------------------------------------Oil revenue - Tunisia $ 3,917,130 $ 1,961,888 $ 9,884,602 $ 3,785,610Other income 705 414 2,440 24,896---------------------------------------------------------------------------- 3,917,834 1,962,302 9,887,042 3,810,506Operating costs 996,225 497,651 2,504,381 1,043,117General and administrative 616,156 338,733 2,136,643 2,676,427Stock based compensation 89,673 (7,868) 349,191 770,912(Gain) on sale of marketable securities - - - (84,927)Financing costs 21,770 1,370 59,925 7,016Impairment write-down (recovery) 156,797 426,376 (305,766) 426,376Loss (gain) on sale of exploration assets (11,106) - 72,114 -Exploration expense 161,496 - 161,496 -(Gain) on sale of building - - (118,258) -Depletion and depreciation 1,597,706 712,740 3,895,521 962,694---------------------------------------------------------------------------- 3,628,720 1,969,002 8,755,247 5,801,615Net income (loss) from continuing operations $ 289,116 $ (6,700) 1,131,795 (1,991,109)Income (loss) from discontinued operations - (11,220) - (314,135)----------------------------------------------------------------------------Net income (loss) $ 289,116 $ (17,920) $ 1,131,795 $(2,305,244) per share - basic and diluted $ - $ - $ 0.01 $ (0.02)



OPERATING

---------------------------------------------------------------------------- Three Months ended Year ended December 31, December 31, 2012 2011 2012 2011----------------------------------------------------------------------------Oil revenues $ 3,917,130 $ 1,961,888 $ 9,884,602 $ 3,785,610Operating costs $ (996,225) $ (497,651) $(2,504,381) $(1,043,117)----------------------------------------------------------------------------Net operating income $ 2,920,905 $ 1,464,237 $ 7,380,220 $ 2,742,493Depletion and depreciation $ 1,597,706 $ 712,740 $ 3,895,521 $ 962,694Revenue per boe $ 110.57 $ 111.48 $ 111.06 $ 112.57Operating costs per boe $ 28.12 $ 28.28 $ 28.14 $ 31.02----------------------------------------------------------------------------Operating income per boe $ 82.45 $ 83.20 $ 82.92 $ 81.55----------------------------------------------------------------------------(1) Net operating income and netback are non-IFRS measures. Net operating income and netback is defined as revenue less operating costs.(2) Since ETAP pays all taxes and royalties from its share of production, net operating income is effectively after tax to the Company.



About CYGAM Energy Inc.

CYGAM is a Calgary based exploration company with extensive international exploration permits and producing properties in Tunisia. The main focus of the Company 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 and three exploratory permits in Tunisia encompassing approximately 2.6 million gross acres.

Neither the 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.



Contacts:
CYGAM Energy Inc.
David Taylor
President and Chief Executive Officer
david.taylor@cygamenergy.com

CYGAM Energy Inc.
Al Robertson
Chief Financial Officer
(403) 802 6983
al.robertson@cygamenergy.com





Source: Marketwire


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