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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 ( or at

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.


                               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 


                             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.


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.

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