June 20 , 2005
Yakusari Abandoned - Search for Oil Continues

Toronto, Ontario - CGX Energy Inc. (OYL.U - TSX-V) and its 62% Guyanese subsidiary ON Energy Inc. (“ON”) report that its Yakusari well, located onshore Guyana, was drilled to a depth of 2,901 feet.  After examining electric well logs, a decision has been taken to abandon the well. This was the first well of a four well program.  During the next two weeks, the well will be abandoned, and the drill equipment moved to Hermitage, a well with a target depth of approximately 6,200 feet.

Kerry Sully, President of CGX and Chairman of ON Energy stated “From an operations viewpoint, we’ve learned a lot about the challenges of importing an entire industry into a country yet to have an oil industry. Of the four locations, Yakusari was located the farthest from our storage yard, and the farthest from the coastal highway. Methodical preparation of our access road and lease location allowed continuous operation during the rainy season, which fortunately was modest by Guyanese standards. We will now integrate the geological information into our geological model to assist us in future exploration. We look forward to the results from the next three locations.”

CGX Energy is a Canadian-based oil and gas exploration company focused on the exploration for oil in the Guyana. 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.

- 30 -

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.