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Cygam Energy Inc.

Cygam Energy Inc.

News Release

May 23, 2007

CYGAM ENERGY INC. PROVIDES UPDATE ON DRILLING OPERATIONS AT POSTA NUOVA, ITALY.

 

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

Calgary, Alberta, May 23, 2007. Cygam Energy Inc. ("Cygam" or the "Corporation") is pleased to announce that the Posta Piana 1 well has been drilled on the Posta Nuova permit to a total depth of 1,147 meters and that today production casing has been set in the well. Log evaluation indicates the presence of several zones of interest which will be perforated and production tested in the next few weeks.

The well is located in the Puglia region of southern Italy, along a trend of several onshore gas fields (Candela-Palino, Monte Stillo, San Salvo-Cupello, etc.).

Cygam's has a 100% working interest in the Posta Piana 1 well, subject to a 20% free carried interest to production point if commercial production is established.

Cygam is a Calgary based exploration company with producing oil and gas properties in Canada and extensive international exploration concessions. The main focus of the Corporation 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 five exploratory concessions in Italy and four exploratory concessions in Tunisia encompassing approximately 4 million gross acres (approximately 2.7 million net acres). Visit  the Cygam website at www.cygamenergyinc.com for more information about Cygam.

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 the Posta Piana 1 production testing program as scheduled. Although log evaluation indicates several zones of interest, there is no certainty that the Posta Piana 1 well will be capable of commercial production. 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 testing 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