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Cygam Cased TT3 Exploration Well for Completion

Source: www.gulfoilandgas.com 12/23/2010, Location: Africa

Cygam Energy Inc. (“Cygam”) is pleased to advise that the TT3 exploration well at Sud Remada has been cased to total depth (1,555 meters) and suspended awaiting completion in early 2011.

The well was drilled on the 67 km2 TT structure with the primary targets being the Ordovician Jeffara and Bir Ben Tartar reservoirs that were originally encountered and proven productive in the TT2 discovery well located approximately 2.8 km to the northeast. Several cores were cut in the Ordovician Bir Ben Tartar formation as well as in the Silurian Tannezuft “hot shales” which will be assessed for their unconventional reservoir qualities.

An extensive logging and wireline testing program using a modular dynamic tester (MDT) tool was undertaken over both the Ordovician and Silurian formations. Further detailed evaluation and completion planning are on going. Completion operations are planned for mid to late first quarter 2011 and are expected to include a fracture stimulation of the Bir Ben Tartar formation, which will involve the mobilisation of a specialized crew.

The drilling of the TT3 well fulfills all the exploration requirements on the permit. Data from this well will be included in the Plan of Development, which will accompany the request for the TT production concession and will be submitted to the Tunisian authorities in early January 2011.

The next drilling operation on the Sud Remada permit will be the TT4 appraisal well, located approximately 6 km east of the TT3 well. CYGAM has been advised by the operator, Chinook Energy Inc., that commencement of drilling operations at this site is planned around the end of January 2011. Six additional structures 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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