CGX Energy Inc.
TSX VENTURE : OYL

CGX Energy Inc.

August 24, 2009 12:15 ET

CGX Files 2Q Financial Results and Provides Exploration Update

TORONTO, ONTARIO--(Marketwire - Aug. 24, 2009) - CGX Energy Inc. (TSX VENTURE:OYL) ("CGX" or the "Company") is pleased to announce that it has filed its Interim Financial Statements and Management Discussion & Analysis for the period ended June 30, 2009 on the Company's SEDAR profile and they have also been posted on the Company's website.

As of June 30, 2009, CGX remains well financed with working capital of $18.3 million.

During the first half of 2009, the principle activity undertaken by the Company has been the processing of the seismic data acquired on the 505 sq km 3D seismic survey on CGX's 100% owned Corentyne Petroleum Prospecting Licence (PPL) and on the 1,839 sq km 3D seismic survey on CGX's 25% Georgetown PPL. Joint Venture Partners in the Georgetown PPL include the Operator, Repsol (15%) and its subsidiary, YPF Guyana (30%), and Tullow Guyana BV (30%).

Warren Workman, Vice President of Exploration stated, "The conventional processing of our 3D program, the first shot offshore Guyana, is nearly complete. We are encouraged by the time and depth images and our initial interpretation. Compared with the 2D, the 3D data is providing superior depth modeling, better detail at the prospect level, and identifying new leads. By September, CCG Veritas will have completed Pre-Stack Depth Migration ( PSDM) of the 3D seismic to give a better image of the depth and geometry of targets.

To further advance our interpretation we have retained international experts to extract technical attributes from the dataset. Data Modeling Inc. from Calgary is using proprietary artificial intelligence to solve for acoustic velocity of the rock layers. In addition, CGX has engaged Rock Solid Images from Houston to estimate the reservoir properties of lithology, porosity and pore fluid from the seismic data within our identified targets. In the middle and upper Cretaceous formations of West Africa, Rock Solid Images rock physics and seismic inversion experience has been effective in achieving these goals."

Kerry Sully, President & CEO stated, "The cost estimate to drill the Eagle Deep Well has been reduced significantly to below $70 million from US$90 million as a result of the industry-wide downturn, service sector price reductions and CGX's rig sharing initiatives with other operators in the area. As the seismic processing nears completion, CGX plans to reopen its data room for potential joint venture partners who would fund the drilling of a well to test both the Eagle Deep play in the Cretaceous and the original Eagle Tubidite in the Tertiary."

CGX Energy Inc. (TSX VENTURE:OYL) is a Canadian-based oil and gas exploration company focused on the exploration for oil in the Guyana basin. CGX is managed by a team of experienced oil and gas and finance professionals from Canada, USA and the UK. CGX is financed internationally and has shareholders worldwide.

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

This press release includes "forward looking statements", within the meaning of applicable securities legislation, which are based on the opinions and estimates of Management and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Such risks and uncertainties include, but are not limited to, risks associated with the oil and gas industry (including operational risks in exploration development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections in relation to production, costs and expenses; the uncertainty surrounding the ability of CGX Energy Inc. to obtain all permits, consents or authorizations required for its operations and activities; and health safety and environmental risks), the risk of commodity price and foreign exchange rate fluctuations, the ability of CGX Energy Inc. to fund the capital and operating expenses necessary to achieve the business objectives of CGX Energy Inc., the uncertainty associated with commercial negotiations and negotiating with foreign governments and risks associated with international business activities, as well as those risks described in public disclosure documents filed by CGX Energy Inc. Due to the risks, uncertainties and assumptions inherent in forward-looking statements, prospective investors in securities of CGX Energy Inc. should not place undue reliance on these forward-looking statements. Statements in relation to "resources" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the resources described will e discovered and can be profitably produced in the future.

Readers are cautioned that the foregoing lists of risks, uncertainties and other factors are not exhaustive. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements contained in this press release or in any other documents filed with Canadian securities regulatory authorities, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.



Trading Symbol: OYL
Shares Outstanding: 126,144,913
Fully-Diluted: 137,399,913

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.

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