CALGARY, ALBERTA--(Marketwire - Aug. 7, 2012) - CYGAM Energy Inc. (TSX VENTURE:CYG) ("CYGAM", or the "Company"), an emerging oil and gas company with interests in Tunisia and Italy, is pleased to announce the following update regarding the current drilling moratorium offshore Italy.
The Italian government published Legislative Decree 83/2012 (the "Decree") on June 26, 2012 in the Italian Official Gazette. The Decree has been ratified by both houses of the Italian Parliament on August 3, 2012 and passed into law without substantial modifications. The Decree becomes effective once published in the Italian Official Gazette which is expected during August 2012.
The Decree includes a modification to the offshore restrictions relating to oil and gas exploration and production operations which were introduced by Legislative Decree 128/2010 ("DL128") in August 2010 which generally banned all such activities within twelve nautical miles of the coast (five nautical miles for liquid hydrocarbons). Under the Decree, the restrictions under DL128 will no longer apply to:
- applications for production concessions that were under review at the time DL128 came into force;
- any titles, including exploration licences, that had been issued prior to DL128 coming into force;
- any proceedings connected with or subsequent to such titles.
The Decree also includes a provision for a 3% increase (to 7% for oil and 10% for gas) in the royalty rates payable for offshore hydrocarbon producers with the proceeds to be allocated to the state budgets of the Ministry of the Environment and the Ministry of Economic Development to support the monitoring and enforcement of marine environmental protection and the supervision of environmental safety for offshore exploration and production activities.
Giuseppe Rigo, Interim President and Chief Executive Officer of CYGAM comments: "We are delighted that the Decree has been passed into law as this allows certain E&P projects in Italian near shore waters to proceed. There are two such projects in CYGAM's portfolio; the Elsa discovery in the Adriatic Sea and the Aretusa prospect in the Mediterranean Sea. We will now commence discussions with the relevant authorities to progress these projects to the benefit of all stakeholders and in the most environmentally responsible manner."
About CYGAM Energy Inc.
CYGAM is a Calgary based exploration company with extensive international exploration permits and producing properties in Tunisia. The main focus of the Company is the acquisition, exploration and development of international oil and gas permits, primarily in Italy, Tunisia and the Mediterranean Basin. CYGAM currently holds various interests in seven exploratory permits in Italy and three exploratory permits in Tunisia encompassing approximately 2.7 million gross acres.
Forward Looking Information
In the interest of providing shareholders and potential investors with information regarding CYGAM, including management's assessment of the future plans and operations of CYGAM, certain statements contained in this news release constitute forward-looking statements or information (collectively "forward-looking statements") within the meaning of applicable securities legislation. In particular, this news release contains, without limitation, forward-looking statements pertaining to the application of the Decree and the impact on CYGAM; the increase in royalty rates; and CYGAM's plan to progress the Elsa and Aretusa Field projects, including discussions with relevant authorities.
Although CYGAM believes that the expectations reflected in the forward-looking statements contained in this news release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this news release, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the forward-looking statements will not occur, which may cause CYGAM's actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve and resource estimates, inability to retain drilling rigs and other services, capital expenditure costs, including drilling, completion and facilities costs, unexpected decline rates in wells, delays in projects and/or operations, wells not performing as expected, changes in legislation or the interpretation of current legislation, delays resulting from or inability to obtain the required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the forgoing list of factors is not exhaustive. Additional information on these and other factors that could affect CYGAM's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and CYGAM does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
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.