CYGAM Energy Announces Tunisian Operational Update
CALGARY, ALBERTA--(Marketwire - Nov. 1, 2012) - CYGAM Energy Inc. ("CYGAM") (TSX VENTURE:CYG) is pleased to provide an operational update regarding the TT Field in 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).
TT-11 Horizontal Well Initial Flow Rates
Completion operations on TT-11 commenced on October 22, 2012 and, following a 12 stage fracture stimulation using 447,810 pounds of proppant, production testing began on October 24, 2012. Over the initial 144 hour flow period, the TT-11 well flowed at an average oil rate of 1,744 barrels of oil per day ("bopd"), an average water rate of 1,363 barrels of water per day (44% water cut) and average gas-to-oil ratio of 1,311 standard cubic feet of gas per barrel of oil. TT-11 is currently flowing at 1,260 bopd at an average water cut of 43%. Cumulative water recovered to date represents approximately 72% of the load fluid used during completion and water cuts have decreased from 73% to 43% over the flow period to date. Early trend data in these initial applications of a multi-staged completion of the tight Ordovician sand reservoir should be assessed on more mature initial production data of 30 and 90 days which will be released as that data becomes available.
BBT Concession Production Update
Production from the BBT Concession continues to increase in 2012 and, excluding TT-11, has averaged 4,183 bopd gross (367 bopd net post ETAP) over the last 30 days compared to 2,236 bopd gross at the beginning of 2012. Production from the previously announced TT-13 well averaged 3,251 bopd over the first 10 days of production and was subsequently restricted to 1,500 bopd due to capacity constraints and limitations on crude oil trucking and surface water handling.
Gross production from the first horizontal well at TT-16 averaged 897 bopd over the first 10 days of production, 825 bopd over the first 30 days of production and 715 bopd over the first 60 days of production and is currently producing 515 bopd with 6% water cut after 101 days of production.
The operator estimates fourth quarter gross production from the BBT Concession to average between 4,500 bopd and 4,750 bopd with an estimated gross productive capacity 2012 exit of 5,000 to 5,250 bopd.
TT-10 Well Drilling Update
Drilling operations on the fourth well at TT-10 commenced on October 19, 2012 which, like TT-11, is being drilled as a vertical pilot hole and kicked off as a horizontal well depending on the results of the vertical pilot hole and rig capability.
As current production potential from the BBT Concession exceeds the current crude handling capacity, the TT-10 well will be the last well in the 2012 drilling program on the concession. The operator is reviewing plans with the project participants to implement strategies to increase its crude oil trucking and surface water handling capacity by year end 2012 to support higher volumes in 2013.
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 seven exploratory permits in Italy plus three exploratory permits and the BBT Production Concession in Tunisia which together encompass a total of approximately 2.7 million gross acres.
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 production estimates, strategies to increase handling capacity and other future operations and the timing thereof.
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 and the ability of the Operator to obtain equipment in a timely manner to carry out drilling and completion operations. 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 and ability to access sufficient capital from internal and external sources. 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
President and Chief Executive Officer
Macam Investor Relations
(403) 984-4150 (FAX)