October 16, 2007

CGX Energy Announces US$30 Million Underwritten Private Placement

Toronto, Ontario - CGX Energy Inc. (OYL.U - TSX-V) is pleased to announce that it has entered into an underwritten private placement common share financing agreement with a syndicate of underwriters led by Cormark Securities Inc. and including Fraser MacKenzie Limited, Jennings Capital Inc., Brant Securities Inc., and Toll Cross Securities Inc. pursuant to which CGX will issue 15,000,000 common shares at US$2 per common share for total gross proceeds of US$30 million pursuant to certain exemptions from prospectus requirements.

CGX Energy has also granted the underwriters an option to purchase up to an additional 2,500,000 common shares for additional gross proceeds of US$5 million.

The private placement financing is scheduled to close on or about November 6, 2007 and is subject to regulatory approval and completion of definitive documentation.

The net proceeds of this offering will be used to fund capital expenditures associated with the exploration and development of CGX's concessions located offshore Guyana and for general corporate purposes.

CGX Energy Inc. (TSX-V- OYL.U) is a Canadian-based oil and gas exploration company focused on the exploration for oil in the Guyana basin. CGX is managed by a team of experienced oil and gas and finance professionals from Canada, USA and the UK. CGX is financed internationally and has shareholders worldwide.

Additional information on CGX Energy may also be examined and/or obtained through the internet by accessing CGX Energy's website at www.cgxenergy.com.

For further information please contact:

THIS PRESS RELEASE WAS PREPARED BY CGX ENERGY INC., WHICH ACCEPTS THE RESPONSIBILITY AS TO ITS ACCURACY. THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.