December 2, 2003
CGX Completes US$2.3 Million Financing to Advance Guyana Exploration

Toronto, Ontario - CGX Energy Inc. (OYL.U - TSX-V) is pleased to announce that on December 1st, 2003 it closed a non-brokered private placement raising a total of US$2,292,034.  The completion of this financing will allow CGX Energy to advance its exploration programs on its extensive onshore and offshore licenses in Guyana.

The private placement consisted of one (1) common share priced at US$0.25 and one-half (1/2) common share purchase warrant. Each whole warrant entitles the holder thereof to subscribe for one (1) common share at the price of US$0.35 for a period of eighteen months, expiring June 1, 2005.  In connection with the foregoing financing, finders fees in the amount of $54,675 were paid by CGX Energy.

“After observing encouraging early stage exploration by Staatsolie onshore Suriname, we decided to follow their example on our adjacent Prospecting Licence, onshore Guyana,” said Kerry Sully, President & CEO of CGX Energy.  “After a field reconnaissance trip in July, Warren Workman, Vice President of Exploration designed a geochemical sampling program, taking samples on a 250 metre grid. Those 8,000 samples are now in Oklahoma for detection of microbes that would be associated with microseepage of hydrocarbons from underlying reservoirs.  Results will be announced when available.”

In addition, Mr. Sully stated “Further, through Patterson, Grant & Watson in Toronto we’ve been able to acquire and have re-interpreted regional aeromagnetic data, that has identified basement highs and a number of significant sub-surface faults - features that can lead to structures that will trap hydrocarbons. Our hope is to find areas where geochemical anomalies overlie these structures.”

“Encouraged by our initial analysis, we licenced an additional 387,000 acres from the Government of Guyana.  This increases CGX’s land position in the Berbice onshore exploration block to over 800,000 acres, almost two-thirds the land mass of neighbouring Trinidad. Using geochem and aeromag data, we’re completing our preliminary survey of a very large area for less than US$600,000. The funds just raised will allow us to follow-up any positive results with 2-D seismic or drilling.”

CGX Energy Inc. (TSX-V- OYL.U) is a Canadian-based oil and gas exploration company focused on the exploration for oil in the Guyana basin and is actively looking at other international opportunities. 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 over 5,000 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 or by accessing CGX Energy’s public disclosure documents through the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com.

For further information please contact Kerry Sully, President & CEO at (604) 733-9647 or Denis Clement at (416) 364-5569.

THIS PRESS RELEASE WAS PREPARED BY CGX ENERGY INC., WHICH ACCEPTS THE RESPONSIBILITY AS TO ITS ACCURACY. THE TSX VENTURE EXCHANGE DOES NOT ACCEPT