Welcome!

News Feed Item

CYGAM Announces Q2 Financial Results and Quarterly Filings

CALGARY, ALBERTA -- (Marketwired) -- 08/13/14 -- CYGAM Energy Inc. (TSX VENTURE:CYG) ("CYGAM", or the "Company"), an emerging oil and gas company with interests in Tunisia and Italy, has filed its Shareholder Report, Interim Financial Results and Management Discussion & Analysis for the three and six months ended June 30, 2014 pursuant to the requirements of the applicable securities laws. These filings may be viewed on the Company's web site (www.cygamenergy.com) or at www.sedar.com.

CYGAM's Q2 results showed the impact of continued strong cashflow arising from the TT Field that is contained within the Bir Ben Tartar ("BBT") Concession in the Sud Remada Permit.

Under the production sharing contract established for the Sud Remada Permit with the Tunisian state oil company, Enterprise Tunisienne d'Activities Petrolieres ("ETAP"), CYGAM holds a 14 percent working interest through its wholly owned subsidiary Rigo Oil Company Tunisia Ltd., in partnership with Storm Ventures International, a subsidiary of Chinook Energy Inc. ("Chinook"), who holds the remaining 86 percent working interest and operates.

Highlights of the quarter

    --  Gross production from the TT Field averaged 2,688 bopd (236 bopd
        CYGAM net, post ETAP); 
        
    --  Oil net revenue was $2,058,216, compared to $2,267,559 for the three
        months ended June 30, 2013; 
        
    --  Operating netbacks were $70.32 per barrel (on revenue of $118.28 per
        barrel with operating costs of $47.96 per barrel); 
        
    --  Net loss of $1,199,106 compared to compared to a loss of $626,911
        for the three months ended June 30, 2013;
        
    --  The June 30, 2014 results included a provision of $339,498 with
        respect to oil export taxes in Tunisia, which the Company expects to
        recover from ETAP but has expensed due the uncertainty of timing of
        recovery, and an impairment provision of $432,960 relating to
        certain equipment and inventory in Tunisia.

A more detailed discussion of the results is included in the MD&A and report to shareholders, available on the Company's web site or SEDAR.

SELECTED FINANCIAL INFORMATION

                                                                            
----------------------------------------------------------------------------
                               Three Months ended          Six Months ended 
                                         June 30,                  June 30, 
                                2014         2013         2014         2013 
----------------------------------------------------------------------------
                                                                            
Oil sales - Tunisia      $ 2,058,216  $ 2,267,559  $ 4,241,077  $ 4,036,951 
Other income                     246        2,493        1,630        5,912 
----------------------------------------------------------------------------
                           2,058,462    2,270,052    4,242,707    4,042,863 
                                                                            
Operating costs              834,553      662,440    1,521,164    1,116,630 
General and                                                                 
 administrative              558,040      577,082    1,102,972    1,187,273 
Stock based compensation      25,976       31,947       49,480       62,311 
Financing costs              239,295       24,708      293,655       46,663 
Impairment write-down        432,960      531,032      566,028      531,032 
Exploration expense           13,109       48,760       28,921      102,880 
Permit penalty                     -            -    3,316,500            - 
Export taxes                 339,498            -      339,498            - 
Depletion and                                                               
 depreciation                814,260    1,020,994    1,668,076    1,742,216 
----------------------------------------------------------------------------
                           3,257,692    2,896,963    8,886,295    4,789,005 
                                                                            
Net loss                  (1,199,230)    (626,911)  (4,643,588)    (746,142)
----------------------------------------------------------------------------
                                                                            
Per share - basic and                                                       
 diluted                 $     (0.01) $     (0.01) $     (0.04) $     (0.01)
                                                                            
Total non-current                                                           
 financial liabilities   $ 2,134,000  $         -  $ 2,134,000  $         - 
Total assets             $20,521,721  $20,404,667  $20,521,721  $20,404,667 

OPERATING

                                                                            
----------------------------------------------------------------------------
                             Three Months ended            Six Months ended 
                                       June 30,                    June 30, 
                             2014          2013          2014          2013 
----------------------------------------------------------------------------
                                                                            
Oil revenues         $  2,058,216  $  2,267,559  $  4,241,077  $  4,036,951 
Operating costs      $   (834,553) $   (662,440) $ (1,521,164) $ (1,116,630)
----------------------------------------------------------------------------
Net operating income $  1,223,662  $  1,605,119  $  2,719,913  $  2,920,321 
                                                                            
Depletion and                                                               
 depreciation        $    814,260  $  1,020,994  $  1,668,076  $  1,742,216 
                                                                            
Revenue per boe      $     118.28  $     104.50  $     118.32  $     107.52 
Operating costs per                                                         
 boe                 $      47.96  $      30.53  $      42.44  $      29.74 
----------------------------------------------------------------------------
                                                                            
Operating income per                                                        
 boe                 $      70.32  $      73.97  $      75.87  $      77.78 
                                                                            
----------------------------------------------------------------------------

(1) Net operating income and netback are non-IFRS measures. Net operating income and netback is defined as revenue less operating costs.

(2) Since ETAP pays all taxes and royalties from its share of production, net operating income is effectively after tax to the Company.

Outlook

The majority of the planned 2014 capital expenditure program has been completed and fully funded. Remaining minor capital investment for the balance of 2014 related to infrastructure upgrades is expected be funded from cashflow. Excess free cash flow generated will be used to progressively pay down debt.

We remain focussed on risk management of our existing assets and ways to protect and maximize shareholder value. The Company is also considering other strategic alternatives which may include re-financing, merger or outright sale of the Company. No financial advisor has been appointed at this time.

This press release should be read in conjunction with the unaudited consolidated interim financial statements for the three and six month periods ended June 30, 2014 and the associated management's discussion and analysis ("MD&A") for the same period together with the Company's audited consolidated financial statements for the years ended December 31, 2013 and 2012 and management's discussion and analysis (MD&A) for the year ended December 31, 2013, including, without limitation, the cautionary statements regarding forward-looking information contained therein.

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.

Neither the 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.

Contacts:
David Taylor
President and Chief Executive Officer
CYGAM Energy Inc.
[email protected]

Al Robertson
Chief Financial Officer
CYGAM Energy Inc.
[email protected]
(403) 802 6983

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone in...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices t...
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
DevOps promotes continuous improvement through a culture of collaboration. But in real terms, how do you: Integrate activities across diverse teams and services? Make objective decisions with system-wide visibility? Use feedback loops to enable learning and improvement? With technology insights and real-world examples, in his general session at @DevOpsSummit, at 21st Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, explored how leading organizations use data-driven DevOps to clos...
"I focus on what we are calling CAST Highlight, which is our SaaS application portfolio analysis tool. It is an extremely lightweight tool that can integrate with pretty much any build process right now," explained Andrew Siegmund, Application Migration Specialist for CAST, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that's no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, explored how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He expla...
The past few years have brought a sea change in the way applications are architected, developed, and consumed—increasing both the complexity of testing and the business impact of software failures. How can software testing professionals keep pace with modern application delivery, given the trends that impact both architectures (cloud, microservices, and APIs) and processes (DevOps, agile, and continuous delivery)? This is where continuous testing comes in. D
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve f...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...