December 23, 2004
CGX Energy Engages Consultant

Toronto, Ontario - CGX Energy Inc. announces that it has entered into a consulting agreement (the "Consulting Agreement") with an independent individual consultant who is at arms-length to the Company. The Consulting Agreement sets out the terms pursuant to which the consultant will assist the Company in securing a joint venture partner to explore one or more of the Company's Exploration Licences located offshore Guyana.  Under the Consulting Agreement the Company has agreed to grant the consultant options to purchase an aggregate of 500,000 common shares of the Company pursuant to its stock option plan. Of the 500,000 stock options to be granted to the consultant, 200,000 of such options (the "Initial Options") will expire on December 6, 2006, which date may be extended for an additional 12 month period under certain conditions set out in the Consulting Agreement. The balance of the options (the "Success Options") may only be exercised if the consultant meets certain performance-related criteria set out in the Consulting Agreement. Each option to be granted to the consultant pursuant to the Consulting Agreement will entitle the consultant to purchase one common share of the Company at a price of US$0.75. Additionally, in consideration for services rendered, the Company will pay US$40,000 and issue 100,000 common shares of the Company to the consultant. The grant of the options and the issue of the common shares of the Company is subject to the receipt of all required regulatory approvals.

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 and is actively looking at other international opportunities. CGX is managed by a team of experienced oil and gas and finance professionals from Canada, U.S.A. and the UK.  CGX is financed internationally and has thousands of shareholders worldwide. For further information please contact: John Cullen at (416) 364-7739 or Charlotte May, Investor Relations at (416) 364-3353 or visit our website at www.cgxenergy.com.

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