CGX Energy Inc.
TSX VENTURE : OYL

CGX Energy Inc.

December 21, 2011 08:00 ET

CGX Reports on Corentyne Drilling Deferral

TORONTO, ONTARIO--(Marketwire - Dec. 21, 2011) - CGX Energy Inc. (TSX VENTURE:OYL) ("CGX" or the "Company") is pleased to announce that the Government of Guyana has granted a deferral for drilling of the Eagle-1 well offshore Guyana on the Company's Corentyne Petroleum Prospecting License (the "Corentyne PPL") to CGX Resources Inc. ("CGX Resources"), a wholly owned subsidiary of CGX. The deferral provides for the remaining minimum work program of the drilling of two exploration wells be completed by June 24, 2013. CGX has a 100% working interest in the Corentyne PPL.

Stephen Hermeston, President and CEO of CGX stated, "We are very pleased to have received this deferral. As announced in our press release of November 29th, CGX Resources has contracted the Ocean Saratoga semi-submersible rig to drill the Eagle-1 well. The Ocean Saratoga is finalizing a work-over in the Gulf of Mexico and will be available early January for mobilization to the Guyana Suriname basin. We are looking forward to announcing the commencement of drilling for this well."

CGX Energy is a Canadian-based oil and gas exploration company focused on the exploration for oil in the Guyana / Suriname Basin, an area that is ranked second in the world for oil and gas prospectivity by the United States Geological Service. CGX is managed by a team of experienced oil and gas and finance professionals from Guyana, Canada, the US and the UK.

Forward-Looking Statements:

This news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "would", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is 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 information. Such risks and uncertainties include, but are not limited to, the inherent risks involved in the exploration and development of oil and natural gas properties and the possibility of unanticipated costs and expenses. For a description of the risks and uncertainties facing CGX and its business and affairs, readers should refer to CGX's Annual Information Form for the year ended December 31, 2010 and subsequent Management's Discussion and Analysis. CGX undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking statements.

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