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Cygam Energy Inc.

Cygam Energy Inc.

News Release

July 24, 2008

CYGAM ENERGY INC. ANNOUNCES PRELIMINARY TEST RESULTS FROM THE TT2 EXPLORATORY WELL IN TUNISIA
CYGAM ENERGY INC. (TSX Venture Exchange: CYG)

Calgary, Alberta, July 24, 2008. Cygam Energy Inc. ("Cygam" or the "Corporation") has received an update from Storm Ventures International Inc. ("Storm") of Calgary, the operator of the Remada Sud permit in southern Tunisia, and is pleased to provide preliminary results on the TT2 exploratory well.

The exploratory well reached a total depth of 1500 meters in the Ordovician Kasbah Leguine formation and encountered hydrocarbons in the Ordovician Bir Ben Tartar formation, as well as having indications of hydrocarbons in the Ordovician Jaffara and the Silurian Tannezuft formations.

Three intervals were tested in the Bir Ben Tartar formation. The lowest interval tested small amounts of formation water and was abandoned. The upper two intervals attained combined flow rates of 300 bbl/d of 45 degree API oil and 200 Mcf/d of associated gas without stimulation.

Core data and pressure buildup analysis indicated the reservoir has relatively low matrix permeability and the well was hydraulically fractured. Initial results show that the well has significant inflow post stimulation and has experienced higher water cuts than seen initially; however there are still approximately 700 barrels of load fluid to be recovered. Storm is mobilizing the equipment required to safely evaluate the post hydraulic fracture potential of the well and determine stabilized flow rates and water cut. The operator advises us that it will release additional information on the potential commerciality of the discovery once it has been determined.

Following the evaluation of the Bir Ben Tartar formation, the partners intend to evaluate an uphole secondary objective that provided strong hydrocarbon shows while drilling.

Upon completion of testing operations, the well will be temporarily suspended pending further appraisal of the discovery and submission of a development plan to ETAP, the Tunisian National Oil Company.

The discovery of light oil in a large structure at relatively shallow depths on the eastern side of the 1.2 million acre block confirms the presence of a mature source rock and effective hydrocarbon migration route increasing the chance of success for several other prospects identified on the block. The TT2 well was drilled on a large Ordovician structure which has an areal extent of approximately 70 square kilometers. Initial drilling results and testing information acquired to date indicate that the reservoir may be an ideal candidate for the application of horizontal drilling technology in the future development plans for the block.

The Sud Remada permit is located in the Ghadames Basin and is approximately 1.2 million acres in size. Cygam’s working interest in the well and in the entire permit is 14%. Storm is the operator and has a 71% working interest; Madalena Ventures Inc. is also a partner with a 15% interest in the well.

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 region. Cygam currently holds various interests in five exploratory concessions in Italy and four exploratory concessions in Tunisia encompassing approximately 4 million gross acres (approximately 2.8 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