CGX Announces US$2,993,000 Non-Brokered Private Placement

CGX Energy Inc. (OYL.U - TSX-V) has entered into an agreement with Sprott Asset Management for the sale by way of a non-brokered private placement of 4,100,000 Units at a price of US$0.73 per Unit for aggregate gross proceeds of US$2,993,000. Each Unit will consist of one (1) common share and one-half (1/2) common share purchase warrant. Each whole common share purchase warrant will be exercisable into one (1) common share at a price of US$1.10 for a period of eighteen months from the date of closing of the financing. The Units were purchased by Sprott Asset Management on behalf of various funds that it manages. Closing will take place on receipt of regulatory approval. Once approval is received, CGX Energy's issued capital will consist of 62,715,595 common shares and 74,293,663 common shares on a fully-diluted basis.

"On March 23, 2004, CGX Energy and ON Energy, our Guyanese subsidiary, jointly announced the commencement of the 2-D onshore seismic survey and hope to have preliminary interpretation by the summer. We have begun the logistics for an onshore drilling program that could commence by this fall. This financing will ensure that we can continue this accelerated pace of exploration," stated Kerry Sully, President & CEO of CGX Energy and Chairman of ON Energy.