Tunisia

By OGJ editors
HOUSTON, Oct. 15 – Cygam Energy Inc., Calgary, said its Rigo Oil Co. Ltd. subsidiary signed an option and farmout with an undisclosed large US independent covering the 400,000-acre Bazma permit in central Tunisia.

After shooting new 2D seismic and reprocessing existing seismic, the US company will have an option to run a 3D survey and the option to earn an interest by drilling a well. If during the term of the agreement Cygan Energy decides to drill a well to test the shallower Triassic Tagi formation, the US company has the option to participate.

Rigo Oil holds a 100% interest in all formations in the permit. Under preexisting agreements and upon earning by two current partners, Canoel International Energy Ltd. and Timgad Energy, Rigo Oil will have a 79% working interest, including of a 12.7% carried interest, in the Tagi formation.

Rigo Oil will allocate the interests held in trust for Canoel and Timgad to those companies after they fulfill their participation commitment to drill a well on the Frida structure to test the Tagi to 2,500 m, and their interest below Tagi will be proportionally adjusted if the US company drills its option well.