CGX Energy Inc.
TSX VENTURE : OYL.U

CGX Energy Inc.

August 09, 2005 14:45 ET

CGX Energy Inc.: Onshore Drilling Update

TORONTO, ONTARIO--(CCNMatthews - Aug. 9, 2005) - CGX Energy Inc. (TSX VENTURE:OYL.U) and its 62% Guyanese subsidiary ON Energy Inc. ("ON") report that the original budget for the onshore drilling program will be exceeded by the time the third well, Albion, is drilled to total depth of 6,000 feet. Surface casing has just been set on the Albion well at 1,830 feet and drilling is expected to be completed within the next 10 to 14 days.

Warren Workman, Vice-President of CGX and President of ON Energy stated "If upon the completion of drilling the Albion well, the results of the well are not significantly encouraging, the drill rig will be released back to Trinidad. The rig arrived in Guyana on May 6, 2005 for a four well program expected to last 80 days. Unloading equipment, transferring it between well sites and drilling have taken significantly longer than our prognosis, thereby leading to increased costs. If the Albion well proves to be successful, we will secure a service rig and test equipment in order to assess the well's potential commerciality. We will also need to integrate the well data with our recent seismic and geochem to enhance our interpretation of the area, such that a decision on advancing to the fourth location can be made. ON Energy will require additional funding in either case."

Updating CGX Energy's offshore operations, Kerry Sully, President of CGX stated that, "In the offshore, during the last 9 months we have made significant progress in the re-interpretation of seismic in the Pomeroon, Annex, Georgetown and Corentyne Licences. As progress is made on maritime border resolution, we will pursue strategies that could align us with major joint venture partners such that when a border is resolved, we will be prepared to pursue drilling at the earliest possible date."

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.

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

Trading Symbol: OYL.U

Shares Outstanding: 95,255,913

Fully-Diluted: 109,047,413

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