|By Marketwired .||
|June 16, 2014 04:00 PM EDT||
CALGARY, ALBERTA -- (Marketwired) -- 06/16/14 -- 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 averaged 2,602 bopd (228 bopd net to CYGAM and post ETAP) during May 2013. Average gross production during the first ten days of June was 2,890 bopd (253 bopd net to CYGAM and post ETAP) reflecting full contributions from the latest wells drilled in the field.
Water injection into the main reservoir using the TT12 well commenced in April 2014. Re-injecting produced water is anticipated to reduce operating costs as well as provide critical reservoir pressure support ultimately increasing the recovery factor of the pool.
Work continues on installing an Early Production Facility and Gathering System which will result in existing wells being flow line connected to a central tank battery and process facility. It is expected that this substantial infrastructure upgrade will be completed during 2014.
2014 BBT Drilling Program
The planned six well program has been completed with results as follows. No further drilling is currently planned during 2014.
TT15 Deviated well
TT15 was spud on December 21, 2013 and drilled to a total depth of 1,510 metres after being directionally drilled to a bottom hole location approximately 200 metres to the southwest of the surface location. The well was fracked in February 2014 and averaged 379 bopd over the first 30 days of production post frac. Average gross production during May, 2014 was 279 bopd with 0% water cut.
TT28 Vertical Well
TT28 was spud on January 14, 2014 and drilled to a total depth of 1,420 metres. The well was fracked in February 2014 and averaged 63 bopd over the first 21 days of production before experiencing liquid loading issues. A velocity string and jet pump were installed in April. Average gross production during May, 2014 was 47 bopd with 12% water cut.
TT18 Vertical Well
TT18 was spud on February 11, 2014 and drilled to a total depth of 1,482 metres. The well was fracked in March 2014 and averaged 272 bopd over the first 30 days of production. A velocity string and jet pump were installed in April, 2014. Average gross production during May, 2014 was 232 bopd with 6% water cut.
TT19 Vertical Well
TT19 was spud on March 10, 2014 and drilled to a total depth of 1,486 metres. The well was fracked in April 2014 and averaged 186 bopd over the first 30 days of production. Average gross production during May, 2014 was 146 bopd with 4% water cut.
TT29 Vertical Well
TT29 was spud on April 1, 2014 and drilled to a total depth of 1,485 metres. As a consequence of a poor cement bond, the well produced 100% water from a shallower zone and following a successful remediation attempt was left in a suspended state for possible use as a future water source well or, pending further investigation, to be completed as a producing well.
TT14 Vertical Well
TT14 was spud on April 20, 2014 and drilled to a total depth of 1,504 metres. The well was fracked in May 2014 and averaged 441 bopd over the first 21 days of production. Average gross production during the first 10 days of June, 2014 was 512 bopd with 1% water cut.
Cygam's President and CEO Dave Taylor stated: "Cygam is encouraged by the latest development drilling results. The new wells have increased our understanding of the field and demonstrated there are areas, around TT-14 for example, where production results have exceeded expectations and created new opportunities for exploitation".
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 and Tunisia. CYGAM currently holds various interests in five exploratory permits in Italy plus two exploratory permits and the BBT Production Concession in Tunisia which together encompass a total of approximately 1.4 million gross acres.
An updated corporate presentation is available on the company's website (www.cygamenergy.com)
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; water injection plans; 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; 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 effect 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.