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Cygam Energy Inc.

Cygam Energy Inc.

News Release

May 3, 2007

CYGAM ENERGY INC. ANNOUNCES SIGNING OF DRILLING CONTRACT FOR THE JORF PERMIT IN TUNISIA.

 

CYGAM ENERGY INC. (TSX Venture Exchange: CYG) )

Calgary, Alberta, May 3, 2007. Cygam Energy Inc. ("Cygam" or the "Corporation") is pleased to announce that the Corporation has signed a contract with Great Wall Drilling Company Tunisia ("Great Wall") to drill a 2,500 meters well in the Jorf permit, onshore Tunisia, in July 2007.

Drilling is expected to start after Great Wall completes its contractual obligations with another operator towards the end of June. In preparation for the upcoming drilling, Cygam has already acquired long delivery items such as wellhead, casing and related equipment.

Cygam currently has a 55% working interest plus a 15% free carried interest in the first well to be drilled on the permit. Joint venture partners committed to pay 45% of seismic and drilling costs to earn 30% working interest in the first structure drilled. In addition, joint venture partners have a further option to farm-in on other structures within the concession on the same terms.

Two major separate anomalies within an extensive reef development area have been outlined through the interpretation of approximately 2,000 kilometres of existing older vintage seismic data. The two identified anomalies are interpreted as being reef build-ups of upper to lower Permian age, with significant thickness and lateral extent. Processing of a recently acquired 166 km 2-D seismic survey is expected to be completed shortly. The new seismic data will be interpreted and integrated with the older data and will be used to determine which anomaly will be drilled first and to finalize the exact well location.

The Jorf permit, located onshore south-central Tunisia, encompasses an area of approximately one million acres. The northern boundary of the exploration permit is within 35 kilometres of the Gulf of Gabes. Major oil and gas pipelines from the giant El Borma oil and gas field and other southern Tunisian oil fields traverse the Jorf block (within 10 to 40 kilometres respectively from the two potential locations) and connect to the La Skhira oil terminal in the Gulf of Gabes.

This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding interpretation of seismic data, future plans and objectives of Cygam Energy Inc., are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated or expected in such statements. In particular, various factors can cause delays or prevent the Corporation from carrying out drilling plans, including but not limited to unavailability of equipment and manpower or delays in the drilling rig reaching the Jorf permit. There is no certainty that the Jorf drilling program will be carried out when scheduled. The existence of discoveries in structures and formations in the regions where Cygam is drilling does not necessarily assure that the company will be successful with its drilling program. Important factors that could cause actual results to differ materially from Cygam's expectations are risks detailed herein and from time to time in the continuous disclosure filings made by Cygam with securities regulators on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.

For further information, please contact:

For further information please contact:

Dario Sodero, President or
Ali Rawji, Chief Financial Officer
Tel: (403) 802-6983, Fax: (403) 802-6984
E-mail: dario.sodero@cygamenergyinc.com or ali.rawji@cygamenergyinc.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release