November 2, 2004
ON Energy Closes US$8.4 Million Financing

Toronto, Ontario - CGX Energy Inc. (OYL.U - TSX-V) and its Guyanese subsidiary ON Energy Inc. ("ON") are pleased to report that US$8.461 million was raised through the exercise of Rights issued by ON Energy Inc., CGX's subsidiary registered in Guyana. Of the rights issued, 99.4% were exercised.  The terms of the Rights Offering were that each shareholder was given two rights for each ON share held, each right entitling the shareholder to purchase one ON common share for US$0.06 per share.  Guyana Americas Merchant Bank Inc. underwrote 63.8 million shares of the rights issue for $3.8 million.  CGX Energy participated in the Rights Offering by subscribing for 71.1 million rights for a total consideration of US$4.26 million.

Following the completion of this Rights Issue, CGX retains ownership of approximately 62% of ON Energy. The funds raised from this offering will be used primarily to fund exploration activities within the Berbice Block, including the upcoming drilling program recently announced by ON Energy and for general working capital purposes.

Environmental and drilling programs have been submitted to the Government of Guyana for approval. The Company is currently contemplating the drilling of up to 5 wells, at a cost of approximately US$7.3 million. This cost estimate is preliminary and subject to change. Target depth could be as deep as 6,400 feet, compared with the shallow wells onshore Suriname at Tambaredjo and Calcutta, that have a maximum depth of approximately 1,000 feet.

As of October 28, 2004, a storage yard has been substantially completed in the Berbice to store drilling supplies. The first drilling location and its access road have also been substantially completed.  Construction of the next 2 locations has commenced. Most of the drilling supplies and well equipment left New Iberia, Louisiana, on October 15 by barge, and will be temporarily stored in Trinidad.

Kerry Sully, President of CGX and Chairman of ON Energy stated "We are pleased to have successfully completed this financing with the support of local investors.  We expect to be drilling in January 2005.   If our drilling is successful, it would create a significant new industry for the people of Guyana, and be very material for the shareholders of both ON and CGX."

CGX Energy is a Canadian-based oil and gas exploration company focused on the exploration for oil in the Guyana.  CGX is managed by a team of experienced oil and gas and finance professionals from Canada, U.S.A. and the UK.  CGX is financed internationally and has thousands of shareholders worldwide.  For further information please contact: Kerry Sully, President & CEO at (604) 733-9647, Charlotte May, Investor Relations at (416) 364-3353 or Denis Clement, Director at (416) 364-1909 or visit our website at www.cgxenergy.com.

- 30 -