CYGAM Energy, an emerging oil and gas company with interests in Tunisia and Italy, announces that it has received approval from the Tunisian authorities for the extension of the Sud Tozeur permit in Tunisia.
The Company, with the support of ETAP, the Tunisian state oil company, had applied to the Ministry of Industry and Mines in March 2014 to extend the permit into the First Renewal Period of three years with an expiry date of May 12, 2017.
As conditions of the extension, the Company has agreed to the acquisition of 500 km2 of 3D seismic to replace the previous 200 km2 commitment, the drilling of one exploratory well, and the payment of a penalty of US$5.0 million (the “Penalty”).
Approval of the extension and associated terms was received on August 14, 2014 from the Advisory Committee of Hydrocarbons. The payment terms of the Penalty are yet to be negotiated with, and approved by, the Tunisian Ministry of Finance.