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Cygam Commences Drilling of TT4 Well at Sud Remada

Source: www.gulfoilandgas.com 1/25/2011, Location: Africa

Cygam Energy Inc (“Cygam”) is pleased to advise that drilling of the TT4 appraisal well at Sud Remada commenced on January 21, 2011, ahead of schedule.

The TT4 well is located approximately 6 km southeast of the TT2 discovery well and approximately 7.6 km southeast of the recently cased TT3 well. The new appraisal location will be drilled to a total vertical depth of approximately 1,900 meters to evaluate an additional deeper prospective horizon, which was not reached, by the TT2 or the TT3 wells. The main target is Bir Ben Tartar Ordovician reservoir, which has already produced in excess 100,000 barrels of sweet 44°API crude at TT2 on natural flow, without artificial stimulation, and has been assessed as a potential producing horizon from log evaluation at the TT3 location. Additional targets to be evaluated in the new well include the Triassic Tagi, the Silurian Acacus and Tannezuft formations, the Ordovician Jaffara and a new deeper target in the Cambrian.

CYGAM has been advised by the operator, Chinook Energy Inc., that plans to artificially fracture and evaluate the Ordovician reservoirs in the TT3 well are being finalized. A program to drill five additional development wells is currently also being finalized. In addition to the 67 km2 TT structure, six other structures, including the 74 km2 El Bell anomaly located approximately 17 km north-east of the TT2 discovery well, and several leads have been identified on the 1.2 million acre Sud Remada block.

CYGAM will participate for its 14% direct working interest in all the appraisal, development and exploratory operations on the Sud Remada permit.

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