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.
The planned 250 km2 3D exploration seismic program targeting the regionally prolific Acacus oil fairway in the southern part of the Sud Remada permit has been postponed and may be tendered later in the year.
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 five exploratory permits in Italy plus three exploratory permits and the BBT Production Concession in Tunisia which together encompass a total of approximately 2.6 million gross acres.
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.
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 programs; water injection plans; strategies to increase water handling capacity and other future operations and the timing thereof; and anticipated cost reductions.
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; the ability of the Operator to obtain equipment in a timely manner and to carry out drilling and completion operations; the results of geological, geophysical and reservoir analysis and testing and completion operations; commodity prices; the receipt of required regulatory approvals; global economic conditions. 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 affect 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.
CYGAM Energy Inc.
President and Chief Executive Officer
403 605 5117
CYGAM Energy Inc.
Chief Financial Officer
403 452 6883
Most Popular Stories
- Michael Jackson, Freddie Mercury on Previously Unreleased Queen Cut
- 10 Things to Know About Alibaba
- Five Steps to Protect Yourself from Data Breaches
- Concur Sold to SAP for $8.3B
- Chrysler Recalls Nearly 189,000 SUVs
- Federal Probe Finds Christie Did Not Order 'Bridgegate'
- Intruder Gets into White House
- HCL America Adding 1,200 IT Jobs
- Longtime Unemployed to Get Help in Las Vegas
- Medical Mfg. Jobs Coming to Dayton