CGX Amends US$6 Million Financing Agreement

CGX Energy Inc. (OYL.U - TSX-V) has amended the financing agreement with GMP Securities Ltd. and Raymond James Ltd. announced in June. In the amended financing agreement, GMP has been engaged as lead agent for a private placement of up to 12,000,000 Common Shares at a price of US$0.50 per Common Share for aggregate gross proceeds of up to US$6,000,000. Based on discussions with the agents, the Company anticipates full subscription to the amended offering by current subscribers. Closing is scheduled for August 5, 2004.

Proceeds from the private placement will be used to fund exploration and development activities, including drilling of exploration wells onshore Guyana through CGX's subsidiary company, ON Energy Inc. and to advance certain of CGX's offshore properties and for general corporate purposes. Completion of the sale of the Common Shares remains subject to the acceptance thereof by the TSX Venture Exchange and to the completion of definitive transaction documentation.