CGX Energy Inc.
TSX VENTURE : OYL

CGX Energy Inc.

November 23, 2010 11:16 ET

CGX Energy Increases Bought Deal Financing to $20 Million

TORONTO, ONTARIO--(Marketwire - Nov. 23, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

CGX Energy Inc. (TSX VENTURE:OYL) ("CGX" or the "Company) is pleased to announce that it has reached an agreement with a syndicate of underwriters led by Cormark Securities Inc. and including Canaccord Genuity Corp., Macquarie Capital Markets Capital Ltd., GMP Securities L.P. and Toll Cross Securities Inc. (collectively, the "Underwriters") in respect of its underwritten common share ("Common Shares") financing announced on November 22, 2010 to increase the size of the financing by 5,500,000 Common Shares. Under the agreement, the syndicate will now purchase from CGX 22,250,000 Common Shares at an issue price of $0.90 per Common Share (the "Offering") for gross proceeds to CGX of approximately $20 million.

CGX will grant the Underwriters an option (the "Over-Allotment Option") to purchase up to an additional 15% of the Common Shares to cover over-allotments, if any, at a price of $0.90 per Common Share for additional gross proceeds of approximately $3 million. The Over-Allotment Option is exercisable in whole or in part for a period of 30 days after and including the date of the closing of the Offering.

CGX intends to use the net proceeds of the Offering to fund CGX's capital program offshore Guyana and for general corporate purposes. The Common Shares will be offered in all provinces of Canada, with the exception of Quebec, by way of a short form prospectus.

Closing is expected to occur on or about December 14, 2010 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX-V and the applicable securities regulatory authorities.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of any offer to buy nor will there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction.

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Additional information on CGX Energy Inc. may also be examined and/or obtained through the internet by accessing the website of CGX at www.cgxenergy.com.

Forward Looking Statements

This press release contains forward-looking statements. More particularly, this press release contains statements which include, but are not limited to, the timing of closing of the offering, the anticipated use of proceeds and the receipt of the required regulatory and third party approvals.

The forward-looking statements are based on certain key expectations and assumptions made by CGX. Although CGX believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because CGX can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. In addition to other risks that may affect the forward-looking statements in this press release, the closing of the offering could be delayed if CGX is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned and the offering will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the offering will not be completed within the anticipated time or at all. The intended use of the net proceeds of the offering by CGX might change if the board of directors of CGX determines that it would be in the best interests of CGX to deploy the proceeds for some other purpose.

The forward-looking statements contained in this press release are made as of the date hereof and CGX undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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