CGX Energy Inc.
TSX VENTURE : OYL.U

CGX Energy Inc.

August 24, 2005 09:06 ET

CGX Energy Inc.: Albion Well Abandoned

TORONTO, ONTARIO--(CCNMatthews - Aug. 24, 2005) - CGX Energy Inc. (TSX VENTURE:OYL.U) and its 62% Guyanese subsidiary ON Energy Inc. ("ON") report that its Albion well, located onshore Guyana, was drilled to a depth of 6,442 feet. After evaluating the petrophysical well logs, a decision was made to abandon the well. This was the third and final well of the drilling program. During the next week, the well will be abandoned and the drilling equipment will be shipped back to Trinidad.

Warren Workman, Vice President of CGX and President of ON stated "The results of our onshore drilling program were discouraging, and unfortunately were consistent with our prior low probability-of-success estimates for an unexplored region. This was a challenging operation in a country having no oil and gas infrastructure, limited wharfage and roads. An entire industry of services and supplies had to be imported. At any one time, up to 50 Trinidadian professionals and more than 90 Guyanese were employed to support the logistics of the drilling rig."

"The new well data will be incorporated into our models to clarify our interpretation. We may also be able to cooperate with adjacent operators to expand the regional onshore data base. To the west, Sadhna Petroleum from Trinidad have started to explore, and may be drilling as soon as the second quarter of 2006. To the south, Groundstar Resources from Canada are starting to explore in the Takatu Basin. And to the east, Staatsolie intends to explore the Nikerie area of Suriname. CGX/ON will encourage joint venture opportunities in the Berbice area."

CGX Energy is a Canadian-based oil and gas exploration company focused on the exploration for oil in Guyana. In addition to the onshore acreage it holds through its interest in ON, CGX holds an interest in 6.9 million net acres offshore 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.

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.

Contact Information

  • CGX Energy Inc.
    Kerry Sully
    President & CEO
    (604) 733-9647
    or
    CGX Energy Inc.
    Charlotte May
    Investor Relations
    (416) 364-3353
    or
    CGX Energy Inc.
    Denis Clement
    Director
    (416) 364-1909
    www.cgxenergy.com