CALGARY, ALBERTA -- (Marketwired) -- 06/19/13 -- CYGAM Energy Inc. ("CYGAM") (TSX VENTURE: CYG) is pleased to provide an operational update regarding the TT Field in the Bir Ben Tartar Production Concession (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).
BBT Concession Production Update
Gross production from the TT Field, excluding TT12, has averaged 2,566 bopd (224 bopd net to CYGAM and post ETAP) during the first 17 days of June, 2013. Average field water cut over the same period was stable at 32% with the majority of the produced water coming from three horizontal wells, TT10, TT11 and TT13. Plans for water injection into the main reservoir are progressing and are expected to be included in the 2013 facility development.
Following liquid loading issues in the TT10 and TT11 wells, which had ceased producing by natural flow, artificial lift was implemented using jet pumps which were successfully installed in both wells in early June. Production optimization of both wells is currently ongoing. A jet pump has also been installed on the TT2 well and is currently being optimized.
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.
TT12 Horizontal Well
The TT12 well is the fifth horizontal well test of the Ordovician Quartzite Reservoir on the BBT Concession. Completion operations on TT12 commenced on May 12, 2013 and, following a 6-stage fracture stimulation placing a total of 214,000 pounds of proppant, production testing began on May 18, 2013. Initial unstabilised flow from the well was at short term rates equivalent to 3,000 barrels of fluid per day with water cuts of over 90%. The well was subsequently shut in pending delivery of equipment that would allow testing of individual sections of the well.
The well is currently on production, flowing 410 bopd (Gross) with an average water cut of 83% (2,400 bfpd). Additional workover operations are planned.
TT21 Vertical well
The TT21 development well was spudded on May 13, 2013 and, after reaching a total depth of 1,555 metres measured depth, the rig was released on May 30, 2013. Completion operations at the well are ongoing.
El Bel-1 Exploration Well
This exploration well was spudded on June 6, 2013 and is targeting a large Ordovician structural feature some 25 kms to the east of the TT Field. Drilling and evaluation operations are ongoing.
2013 BBT Drilling Program and Sud Remada Permit Activity
CYGAM has budgeted for the drilling and completion of up to a further four vertical development wells on the TT Field for the balance of 2013. Following a significant redesign of the vertical wells, the operator is forecasting a significant cost reduction in completed vertical development well costs to less than $3.5 MM gross per well.
Construction activities relating to the Early Production Facility and in-field pipelines are progressing with completion expected in 4Q13.
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