Cygam Energy Inc.

Cygam Energy Inc. (Toronto Venture: CYG) has commissioned Envoi Ltd. to find a partner to develop its permitted acreage in onshore west central Tunisia.

Cygam has two separate permits, which include the proven and producing Ordovician and Triassic conventional play and the large, untested unconventional Silurian Hot Shale play potential. The permits cover 5,673 square kilometers, about 1.4 million acres, of the Chott Basin and lie on the trend with producing oil and gas fields in the region.

Cygam has reprocessed two-dimensional seismic data covering the acreage and the surrounding area. It is now considering a new three dimensional seismic program over the Sud Tozeur Permit, which would cover two hundred square kilometers. This survey would further delineate faulting and reservoir distribution assuring the most suitable drilling location.

The area of Cygam’s acreage is between the Talemzane Arch to the south and the Kasserine High and Atlas Mountains to the north. It is an area proven by a number of producing fields discovered in the Palaeozoic hydrocarbon systems that dominate both the Chott and the Ghadames Basin further south across the Talemzane Arch which dominates southern Tunisia and eastern Algeria.

Cygam is offering a material interest and operatorship in two permit areas in return for a contribution to its past costs and a commitment to fund a development program in each area, including a new three dimensional survey plus one well in Sud Tozeur before May 2014 and two wells in the Bazma Permit before July 2016. The combined gross estimated cost is around $65 million.

Cygam Energy is based in Calgary. For additional information contact Mike Lakin at Envoi Ltd. at 4420-8566-1310.