January 29, 2004
Berbice GeoMicrobial Survey Positive—CGX to Proceed with 2-D Seismic Survey

Toronto, Ontario - CGX Energy Inc. and ON Energy Inc. (OYL.U - TSX-V) are pleased to announce that the analysis of the geomicrobial survey conducted in the Berbice onshore block in Guyana has identified more than 20 anomalous leads, one of which is approximately 40 square kilometres in areal extent. We are currently preparing to shoot a 200 km 2-D seismic program to identify the depth and thickness of the source of the microseepage of hydrocarbons that are associated with several of the larger anomalies.

During October 2003, 8,000 soil samples were taken in the Berbice onshore block in Guyana. At the GeoMicrobial Technologies (GMT) labora-tory in Oklahoma, every other sample was analyzed for microbes that flourish in the presence of hydrocarbon microseepage. Infill analysis of over 1,000 samples in areas of high readings has significantly improved the definition of the leads. Thermogenic hydrocarbons (not Biogenic/Swamp gas) is indicated as associated with many of the microbial anomalies by the sorbed gas analysis.

The highly acidic nature of the soil in the area has limited the effectiveness of sorbed gas analysis from the current shallow soil samples, however one set of deeper samples indicates better concentration of hydrocarbons (less affected by the acidic soil) so CGX plans a limited number of deeper sampling sites will be done in conjunction with the planned seismic.

“We are now in the process of finalizing our integration of the geochemical study with our reprocessed aeromagnetic data”, stated Warren Workman, Vice President of Exploration for CGX.  “Using the aeromag data, we have identified basement highs and fault structures that may be effective in forming traps to migrating hydrocarbons. We have reviewed the geology associated with the Suriname oil production on trend.  The seismic will provide definition as to potential trap on several of our larger Microbial anomalies and tie to our aeromag features.”

The 800,000-acre Berbice block is held by ON Energy Inc., a Guyanese registered company, currently owned 85.5% by CGX.  Additional financing will be required within ON Energy to proceed with the 2-D seismic program. CGX will support that financing as it evolves.

Kerry Sully, President of CGX will be speaking at Friedland Capital’s & Torch Energy Advisors’ Oil, Gas and Energy Conference in Houston on February 4, 2004. That presentation will be webcast and may be accessed through www.friedlandcapitalevents.com/Webcasts.htm.

On February 9, CGX Management will be holding an information meeting at The National Club in Toronto to update shareholders on recent activity. For more information on the meeting or to add your name to the list of attendees, please contact our offices at (416) 364-5569.

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.

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