March 23, 2004
Seismic Exploration Begins - Onshore Guyana

Toronto, Ontario - CGX Energy Inc. (OYL.U - TSX-V) and its subsidiary, ON Energy Inc., wish to announce that the second phase of exploration on the 800,000 acre Berbice Block located onshore Guyana has begun. The second phase of exploration will include approximately 190 km of 2-D seismic to enhance the targets identified in our phase 1 geochemical and aeromag surveys.

The geomicrobial survey identified more than 20 anomalous leads, one of which is approximately 40 square kilometres in areal extent. The 2-D seismic program is planned to identify the depth and thickness of the potential reservoirs that could contain hydrocarbons that are associated with most of the anomalies. Over the next two months, Seis Pros Inc. of Houston, Texas will complete the 2-D program on the Berbice Block. Processing and interpretation is estimated to take another two months. Seismic acquisition will be focused on areas of significant geo-chemical anomalies, reducing the cost normally associated with exploratory seismic surveys covering a broad area. The budget for phase 2 is approximately US$1.2 million. Following interpretation of the seismic, phase 3 will initiate drilling exploration wells to test seismically-defined anomalies.

"We intend to conduct a seismic program that has low impact on the environment and maximum impact on the local economy," stated Warren Workman, Vice President of Exploration of CGX and President of ON. "We're going to use very portable equipment to drill the shot holes. For the program, we'll employ about 150 people - 80 hired directly by our subcontractors and the rest through support services. Seis Pros will manage the seismic program and provide quality control for the entire project." 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 complete the 2-D seismic program. CGX will support that financing as it evolves.

CGX / ON Energy are extremely pleased with the support and cooperation they received from the Berbice Community during the geochemical field operations and look forward to this ongoing relationship and goodwill during phase 2 of the low impact seismic exploration.

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.

For further information please contact: Kerry Sully, President & CEO at (604) 733-9647, Charlotte May, Investor Relations at (416) 364-5569 or Denis Clement, Director at (416) 364-1909.

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