CGX Increases Financing to US$7.5 Million

CGX Energy has increased the size of the financing announced yesterday from US$6 million to US$7.5 million. This change is a result of higher Institutional demand for the offering. The offering, led by GMP Securities Ltd. and including Raymond James has been increased by 3,000,000 Common Shares for a total of 15,000,000 Common Shares. The closing date will remain as scheduled for August 5, 2004.

As previously announced, the 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.