CALGARY, ALBERTA--(Marketwire - June 28, 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 Decree DL83/2012 (the "Decree") on 26 June 2012 in the Italian Official Gazette. The Decree includes a modification to the offshore restrictions relating to oil and gas exploration and production operations which were introduced by Legislative Decree DL128 in August 2010 which generally banned all such activities within 12 nautical miles of the coast (5 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%) 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.
The Decree is effective immediately but requires ratification by the Italian Parliament within 60 days during which period the Decree can be amended by Parliament.
Giuseppe Rigo, Interim President and CEO of CYGAM comments: "If this new Decree as written is ratified by Parliament, it will allow activities to recommence on our C.R148.VG permit, offshore Sicily, and our B.R268.RG permit in the Adriatic Sea where an appraisal well is planned on the large Elsa structure. This feature was drilled by Elsa-1 in 1992 and discovered a 65 metre oil column in good quality Lower Cretaceous dolomitized carbonates at a depth of around 4,500 metres. CYGAM will be fully carried for the drilling of the appraisal well which has been farmed out to Petroceltic International plc., following which we will retain a 30% interest in the project. This is potentially a very large field which, if the appraisal well is successful in confirming a commercial development, will be of material significance to CYGAM."
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.
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.