CYG Cygnus Metals Limited

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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
CYGAM Energy Inc.
David Taylor
President and Chief Executive Officer
403 605 5117
david.taylor@cygamenergy.com


CYGAM Energy Inc.
Al Robertson
Chief Financial Officer
403 452 6883
al.robertson@cygamenergy.com
www.cygamenergy.com

Cygnus Metals (TSXV:CYG)
Historical Stock Chart
From Dec 2024 to Jan 2025

Cygnus Metals (TSXV:CYG)
Historical Stock Chart
From Jan 2024 to Jan 2025