Italy

Cygam Energy Inc., Calgary, completed an environmental assessment for the proposed Elsa-2 exploration well to be drilled in the central Adriatic off Italy in late 2010 subject to rig availability.

July 30, 2009

By OGJ editors
HOUSTON, July 30 – Cygam Energy Inc., Calgary, completed an environmental assessment for the proposed Elsa-2 exploration well to be drilled in the central Adriatic off Italy in late 2010 subject to rig availability.

The well is to go to 4,700 m in 33 m of water 7 km offshore on the 31,300-acre B.R268.RG permit.

Reprocessing and interpretation of 354 km of 2D seismic confirmed the existence of a large structure with 15 sq km of closure at the intra-Cretaceous Maiolica reservoir level. Based on published reports, the Maiolica tested 2,500 b/d of 34° gravity oil and 3.5 MMcfd of gas in the onshore Eni SPA Miglianico-1 oil discovery 10 km km west of the Elsa structure.

Wireline logs from the Elsa-1 well, drilled into the Elsa structure in 1992, confirmed the presence of a 65-m hydrocarbon column at that location.

Cygam has a 60% working interest in the permit, including a 20% carried interest in the first well drilled on the block. Petroceltic International PLC has 40%.