July 15, 2004
CGX Increases Financing to US$7.5 Million

Toronto, Ontario CGX Energy Inc. (OYL.U - TSX-V) is pleased to announce that it has increased the size of the financing announced yesterday from US$6 million to US$7.5 million. This change is a result of higher Institutional demand for the offering. The offering, led by GMP Securities Ltd. and including Raymond James has been increased by 3,000,000 Common Shares for a total of 15,000,000 Common Shares. The closing date will remain as scheduled for August 5, 2004.

As previously announced, the proceeds from the private placement will be used to fund exploration and development activities, including drilling of exploration wells onshore Guyana through CGX's subsidiary company, ON Energy Inc. and to advance certain of CGX's offshore properties and for general corporate purposes. Completion of the sale of the Common Shares remains subject to the acceptance thereof by the TSX Venture Exchange and to the completion of definitive transaction documentation.

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 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.

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