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Cygam Energy Inc.

Cygam Energy Inc.

News Release

September 27, 2007

CYGAM ENERGY INC. PROVIDES UPDATE ON OPERATIONS IN TUNISIA CYGAM ENERGY INC. (TSX Venture Exchange: CYG)

Calgary, Alberta, September 27, 2007. Cygam Energy Inc. (“Cygam” or the “Corporation”) announces that it has terminated testing of two intervals in the dolomitized and fractured upper reef zone where circulation loss had occurred during drilling. Recovery from the tests consisted of mixed drilling fluids and formation water. After review of seismic and well data, Cygam and its partners have decided to deepen the Bahyra Rigo # 1 well by approximately 300 metres to test a lower reef unit.

Upon completion of drilling operations, Cygam and its partners will have the option to renew the Jorf permit for an additional 2.5 year period. Data gathered from the exploratory well, together with seismic review, will be used to assess the potential of several un-drilled Permian structures which have been identified on this very large but sparsely drilled permit.

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 and well 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 Bhayra Rigo # 1 testing program as scheduled, including but not limited to unavailability of equipment and manpower. The existence of discoveries in structures and formations in the regions where Cygam has permits does not necessarily assure that the company will be successful. 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:

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