CALGARY, ALBERTA--(Marketwire - Sept. 17, 2012) -
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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 initial flow rates from the TT-13 horizontal well which is the second horizontal well test of the Ordovician quartzite reservoir in the TT Field in the Bir Ben Tartar concession, onshore Tunisia.
Following an eleven stage fracture stimulation along the 1,000 metre horizontal leg of the well, production testing commenced on September 15, 2012. Over the initial 48 hour flow period the TT-13 well produced at an average oil rate of 2,959 barrels of oil per day (bopd), average water rate of 1,848 barrels of water per day (38% water cut) and an average gas-oil-ratio of 1,087 standard cubic feet of gas per barrel of oil (scf/bbl). The average daily oil rate over the last 12 hours has been 3,468 bopd through a 1.5" choke at a flowing wellhead pressure of 224 psi. Cumulative water recovered to date represents approximately 38% of the load fluid used during the completion and water cuts have decreased from 84% to 24% over the flow period to date.
Early trend data in these initial applications of a multi-staged completion of the tight Ordovician sand reservoir should be assessed on more mature initial production data of 30 and 90 days, which will be released as that data becomes available. By way of comparison, the first horizontal test well (TT-16) averaged 897 bopd over the first 10 days of production from an 830 metre horizontal section with an eight stage completion. The average rate over the first 30 days production was 825 bopd and the current rate after 54 days production is 665 bopd with an 11% water cut.
The TT-13 well encountered more reservoir by virtue of its longer length and the sand quality, as evidenced by samples, MWD logs and gas shows while drilling, also appears better at the TT-13 well when compared to similar data for TT-16. Completed well costs for the two wells is similar at approximately $12.0 million per well as improvements in the well design and execution were offset by significant lost circulation problems while drilling TT-13. The operator believes well costs can be reduced materially on a percentage basis as experience and the program size increases.
The third horizontal well in the current four well program (TT-11) is currently drilling the horizontal build section and the operator expects to complete the drilling operations within 10 days and commence the completion in early October.
Partners in the concession are block holder Enterprise Tunisienne D'Activites de Petrolieres (Etap) and Contractors Chinook (86% interest and operator) and Cygam Energy Inc. (14% interest).
Forward Looking Information
Certain information and statements contained in this press release constitute forward-looking information under applicable securities laws. Specifically this press release contains forward-looking information relating to future testings, analysis, and the disclosure of such test results, material reduction of future drilling, completion and testing costs associated with increasing experience and program sizes, completion of the TT-11 drilling and completion operations and other statements that are forward-looking information. The forward-looking information contained in this press release speaks only as of the date of this press release and is expressly qualified by this cautionary statement. This forward-looking information is based on certain key assumptions regarding, among other things, the receipt of regulatory approvals, industry conditions within the jurisdictions in which the Company operates, and global economic conditions. Furthermore, this forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking information. Such factors include, but are not limited to global economic conditions, a failure to obtain required regulatory approvals, changes in laws and regulations and changes in how they are interpreted and enforced, increased competition, volatility of commodity prices, and the inability to complete the transactions or to obtain required regulatory approval. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking information. CYGAM's actual results, performance or achievement could differ materially from those expressed in, or implied by, this forward-looking information, or if any of them do so, what benefits that CYGAM will derive therefrom. CYGAM disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
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.