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Cygam Commences Drilling of TT3 Well at Sud Remada.

Source: www.gulfoilandgas.com 11/18/2010, Location: Africa

Cygam Energy Inc. (“Cygam”) is pleased to advise that drilling of the TT3 appraisal well at Sud Remada commenced on November 18, 2010.

The TT3 well is located approximately 2.3 km south-west of the TT2 discovery well on the 67 km2 TT structure and will be drilled to a total vertical depth of approximately 1,500 meters. The main target is the Bir Ben Tartar Ordovician reservoir, which had a 57 meters hydrocarbon column in the TT2 discovery well and has already flowed approximately 100,000 barrels of sweet 44°API crude from that location. Additional targets will be evaluated in the new well, including the Triassic Tagi, the Ordovician Jaffara and the Silurian Tannezuft formation.

An extensive coring program is planned for the Bir Ben Tartar reservoir as well as the Silurian Tannezuft “hot shales” which will be assessed for their unconventional reservoir qualities. A recent study of the Silurian unconventional potential in southern Tunisia has concluded that the Tannezuft “hot shales” exhibit good to very good petroleum potential with type II kerogen and that the area around the TT structure is in the oil window.

Cygam has been advised that the operator, Chinook Energy Inc. (“Chinook”), has an option to use the drilling rig for up to two additional wells after TT3. Following completion of drilling and testing operations at TT3, Chinook may use the rig to re-enter the TT2 wellbore and drill a 1,500 to 3,000 feet horizontal leg to assess the potential improvement in deliverability. After an engineering assessment of vertical and horizontal well performance, horizontal legs may be drilled in the TT3 well and in all subsequent development wells.

Chinook also advised that it hopes to have an agreement and approvals in support of the first phase of commercial development early in 2011. An additional six structures, including the 74-km2 El Bell structure located approximately 17 km northeast 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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