CGX Energy Inc.
TSX VENTURE : OYL.U

CGX Energy Inc.

April 20, 2007 09:59 ET

CGX Energy Announces Closing of US$8 Million Financing

TORONTO, ONTARIO--(CCNMatthews - April 20, 2007) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

CGX Energy Inc. (TSX VENTURE:OYL.U) is pleased to announce that it closed its previously announced private placement financing (the "Offering") on April 19, 2007. Pursuant to the Offering, CGX issued 10,000,000 common shares of the Corporation at a price of US$0.80 per share for gross proceeds of US$8,000,000. The Offering was brokered by a syndicate of agents led by Cormark Securities Inc. and including Fraser Mackenzie Limited (collectively the "Agents"). As compensation for their services in connection with the Offering, the Agents were paid an aggregate cash commission of US$480,000 and were issued broker warrants entitling the Agents to acquire an aggregate of 600,000 common shares of the Corporation at a price of US$0.80 per common share at any time until April 19, 2009.

The common shares issued pursuant to the Offering will be subject to a four-month hold period which expires on August 20, 2007. Completion of the Offering is subject to receipt by the Corporation of the final approval of the TSX Venture Exchange in connection therewith.

Net proceeds of the offering will be used to continue the exploration on the company's three offshore Guyana Licenses and for general corporate purposes.

CGX is a Canadian-based oil and gas exploration company focused on exploration for oil in Guyana, South America. 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.

THIS PRESS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THE COMMON SHARES ISSUED UNDER THE OFFERING IN ANY JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL. THE COMMON SHARES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933 AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT.

THIS PRESS RELEASE WAS PREPARED BY CGX ENERGY INC., WHICH ACCEPTS THE RESPONSIBILITY AS TO ITS ACCURACY.

Shares Outstanding: 105,255,913

Fully-Diluted: 113,439,913

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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