July 21, 2010
CGX Revises Public Offering

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE US

Toronto, Ontario - CGX Energy Inc. (OYL - TSX-V) announces that it has priced and revised the terms of its previously announced public offering (the “Previous Offering”) such that the Company will now offer for sale up to 30,000,000 common shares of the Company (the "Common Shares") at a price of $0.50 per Common Share for aggregate gross proceeds of up to $15,000,000 (the “Revised Offering”). There will be no warrants issued under the Revised Offering.

The Revised Offering is being co-led by Cormark Securities Inc. and RBC Capital Markets on behalf of a syndicate of agents which includes Canaccord Genuity Corp., Dundee Securities Corporation, Macquarie Capital Markets Canada Ltd., Jennings Capital Inc. and Toll Cross Securities Inc. (collectively the “Agents”).

The Company will also grant the Agents an over-allotment option to purchase additional Common Shares in an amount up to 15% of the number of Common Shares sold pursuant to the Revised Offering, exercisable in whole or in part at any time up to 30 days after the date of closing of the Revised Offering (“Closing”).

CGX intends to use the net proceeds of the Revised Offering: (i) to fund CGX’s 25% share of certain costs associated with the drilling of the Jaguar well on the Georgetown Petroleum Prospecting Licence; and (ii) to fund the preparatory expenses for the drilling of an exploration well on the Corentyne Petroleum Prospecting Licence, in respect of which the Corporation holds a 100% participating interest.

Closing is scheduled to occur on or about August 10, 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.

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.

For further information please contact:

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

Forward-Looking Statements:

This news release contains certain "forward-looking information" within the meaning of applicable securities law including statements regarding the proposed use of proceeds of the Offering. 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. In particular, this press release contains forward-looking information regarding the size of the Revised Offering and the use of proceeds of the Revised Offering. 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. These factors include the inherent risks involved in the exploration and development of oil and natural gas properties and the possibility of unanticipated costs and expenses. Completion of the proposed Offering is subject to certain risks and uncertainties including market risk with respect to marketing and pricing of the Common Shares, receipt of all required regulatory approvals, including from the TSX-V, completion of due diligence by the Agents and the satisfaction of all conditions to closing. 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, 2009. 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.