CGX Completes US $7.5 Million Financing

CGX Energy has completed its previously announced private placement through a syndicate of dealers led by GMP Securities Ltd. and including Raymond James Ltd. Pursuant to the private placement, CGX issued a total of 15,000,000 common shares at a price of US$0.50 per Common Share to raise gross proceeds of US$7,500,000. The shares issued under the private placement are subject to a four-month hold period expiring December 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.