CGX Energy Inc.
TSX VENTURE : OYL

CGX Energy Inc.

September 29, 2011 09:24 ET

CGX Reports on Georgetown Drilling Deferral

TORONTO, ONTARIO--(Marketwire - Sept. 29, 2011) - CGX Energy Inc. (TSX VENTURE:OYL) ("CGX" or the "Company") is pleased to announce that the Government of Guyana has stated it will grant an extension to the deadline for drilling of the Jaguar-1 well offshore Guyana to the parties to the Georgetown Petroleum Prospecting Licence (the "Georgetown PPL"), including CGX Resources Inc, a wholly owned subsidiary of CGX Energy Inc..

The parties to the Georgetown PPL are Repsol Exploración S.A (15%) ("Repsol"), being the operator, along with YPF Guyana Limited (30%), Tullow Guyana BV (30%) and CGX Resources Inc. (25%). The basis for the extension was that the Atwood Beacon jack-up rig that will drill the Jaguar-1 well has been significantly delayed while drilling offshore Suriname.

Stephen Hermeston, President and CEO of CGX stated, "We are very pleased to have received the formal commitment of an extension to drill the Jaguar-1 well. Personnel and equipment are already in Guyana and 95% of the contracts are in place. We are looking forward to the release of the Atwood Beacon rig so operations offshore can commence."

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 Canada, the US and the UK.

Forward-Looking Statements:

This news release contains certain "forward-looking information" within the meaning of applicable securities law including statements regarding the expectations for satisfying the drilling requirements of the Georgetown PPL. 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 risk that the parties to the Georgetown PPL will not be able to satisfy the requirements of the Georgetown PPL prior to the new deadline, 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.

Trading Symbol OYL
Shares Outstanding 194,778,663
Fully Diluted 210,228,663

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