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
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
Andi Mann, Chief Technology Advocate at Splunk, is an accomplished digital business executive with extensive global expertise as a strategist, technologist, innovator, marketer, and communicator. For over 30 years across five continents, he has built success with Fortune 500 corporations, vendors, governments, and as a leading research analyst and consultant.
No hype cycles or predictions of zillions of things here. IoT is big. 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, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Announcing Poland #DigitalTransformation Pavilion
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
CloudEXPO | DXWorldEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
For far too long technology teams have lived in siloes. Not only physical siloes, but cultural siloes pushed by competing objectives. This includes informational siloes where business users require one set of data and tech teams require different data. DevOps intends to bridge these gaps to make tech driven operations more aligned and efficient.
The best way to leverage your CloudEXPO | DXWorldEXPO presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering CloudEXPO | DXWorldEXPO will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at CloudEXPO. Product announcements during our show provide your company with the most reach through our targeted audienc...
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution. In his session at @ThingsExpo, Akvelon expert and IoT industry leader Sergey Grebnov provided an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors!