July 19, 2004
CGX Finalizes Pomeroon Block Acquisition

CGX Energy Inc. (OYL.U-TSX-V) is pleased to announce that the Government of Guyana has approved the transfer of Century Guyana Ltd.'s 100% interest in the Pomeroon Prospecting Licence located offshore Guyana to CGX 's wholly owned subsidiary, CGX Resources Inc.

The Pomeroon Licence is approximately 11,254 sq km (2,781,000 acres) in size and is located adjacent to CGX 's 100% owned Annex portion of the Corentyne Licence. Water depths in the Pomeroon Licence range from 20 to 170 metres. The Pomeroon Petroleum Prospecting License has also been extended to November 19, 2025 by the Government of Guyana.  During the First Phase of the First Renewal Period terminating May 19, 2005, CGX 's work commitment includes reprocessing 330 kilometres of the approximately 6000 kilometres that have been shot on the Licence, and re-interpreting and integrating regional geological, aeromagnetic, gravity and seep surveys. If CGX elects to renew the Licence at the end of the First Phase, subsequent work would include new seismic surveys and/or drilling exploration wells.   If a significant discovery were made, that portion of the Licence would be converted to a 25 year Production Licence.

All conditions precedent to the Purchase and Sale Agreement previously announced on November 13, 2025 have now been satisfied. The terms of the acquisition are that in return for a 100% interest in the Pomeroon Licence, CGX has agreed to pay to Century Guyana, Ltd. US$150,000 and 2 million common shares of CGX, the issuance of which remains subject to regulatory approval. For further information on the Pomeroon Licence please refer to CGX's November 13, 2025 press release which is available online at www.cgxenergy.com.

With this acquisition, CGX now holds an interest in 9.8 million acres (approximately 40,000 square kilometers) (7.7 million acres net) both onshore and offshore in Guyana. In addition, CGX is also pleased to announce that the term of the original Corentyne Licence (2.8 million acres) has been extended by the Government of Guyana to June 24, 2011.

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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