August 5, 2004
CGX Announces Completion of US$7.5 Million Financing

Toronto, Ontario - CGX Energy Inc. (OYL.U - TSX-V) is pleased to announce the completion of a 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.

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 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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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.