January 10, 2005
Drilling Update

Toronto, Ontario - ON Energy Inc., the operating subsidiary of CGX Energy Inc. onshore Guyana, has informed CGX that the release of the rig contracted to ON has been re-scheduled. The Trinidadian drilling contractor has advised ON Energy that an option has been exercised to drill another well in Trinidad . Following completion of this well, expected within 6 to 8 weeks, the rig will be released to ON Energy.

Warren Workman the President of ON Energy in a statement said, "ON Energy's drilling operations in Guyana are ready for the start of drilling on delivery of the rig. Due to the lack of qualified equipment in the region, we view the re-scheduling of the release of the rig from Trinidad to be a modest change in our onshore exploration schedule."

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: Kerry Sully, President & CEO at (604) 733-9647, Charlotte May, Investor Relations at (416) 364-3353 or Denis Clement, Director at (416) 364-1909 or visit our website at www.cgxenergy.com.

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