Cygam Energy Inc. is pleased to announce that a contract was signed with Hydro Drilling International S.p.A. (Hydro Drilling) on March 23, 2007 to drill a 1000 meters well in the Posta Nuova permit in southern Italy.
Regulatory approval for all drilling operations has been received and construction of the surface lease has commenced. Cygam has already acquired long delivery items such as wellhead, casing and related equipment. Drilling is expected to start towards the end of April, after Hydro Drilling completes its contract obligations with another operator and mobilizes the drilling rig from a nearby location.
Cygam has a 100% working interest in the Posta Nuova permit located onshore, in the Puglia region of southern Italy, along a trend of major onshore gas fields (Candela-Palino, Monte Stillo, San Salvo-Cupello, etc.). The Corporation acquired and re-interpreted available 2-D seismic data in order to confirm the size of the structural target where a former operator drilled a well in 1993. That well, Cervaro 1, tested gas at a rate of 1.3 MMcf/d from a middle Pliocene sand at a depth of approximately 950 metres but was abandoned because of lack of gas transmission infrastructure at the time. Cygam plans to drill the new well in a structurally higher position, approximately 200 meters away from the Cervaro 1 location, to a minimum total vertical depth of 1,000 metres, to test the primary middle Pliocene sandstones target. Additional shallower sandstone reservoirs will be tested as well, pending log evaluation.
This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding interpretation of seismic data, future plans and objectives of Cygam Energy Inc., are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated or expected in such statements. In particular, various factors can cause delays or prevent the Corporation from carrying out drilling plans, including but not limited to unavailability of equipment and manpower or delays in the drilling rig reaching the Posta Nuova permit. There is no certainty that the Posta Nuova drilling program will be carried out when scheduled. The existence of discoveries in structures and formations in the regions where Cygam is drilling, and the previous testing of gas flows in the same structure, does not necessarily assure that the company will be successful with its drilling program. Important factors that could cause actual results to differ materially from Cygam's expectations are risks detailed herein and from time to time in the continuous disclosure filings made by Cygam with securities regulators on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release
Contact:
Dario Sodero
Cygam Energy Inc.
President
(403) 802-6983
Email: dario.sodero@cygamenergyinc.com
Ali Rawji
Cygam Energy Inc.
Chief Financial Officer
(403) 802-6983
(403) 802-6984 (FAX)
Email: ali.rawji@cygamenergyinc.com
Source: Cygam Energy Inc.
Your Ads At Here
