April 26, 2004
CGX Announces US$10 Million Financing Engagement with Octagon Capital Corporation

Toronto, Ontario - CGX Energy Inc. (OYL.U - TSX-V) has entered into a financing engagement with Octagon Capital Corporation (Octagon) whereby Octagon has been engaged as lead manager for a private placement of up to 13,333,334 Units at a price of US$0.75 per Unit for aggregate gross proceeds of up to US$10,000,000. Each Unit will consist of one (1) common share and one-half (1/2) common share purchase warrant. Each whole common share purchase warrant will be exercisable into one (1) common share at a price of US$1.10 for a period of eighteen months from the date of closing of the financing. The Units will be marketed on a best efforts basis under private placement exemptions to qualified investors in Ontario, Alberta, British Columbia and other jurisdictions as may be agreed to by Octagon and CGX. Under the financing engagement, Octagon also has the right to increase the private placement by 50% to US$15,000,000 to cover over allotments. In consideration for its services as lead manager, Octagon will receive compensation warrants exercisable at any time for a period of eighteen months following the closing to purchase that number of common shares equal to 8% of the total number of Units issued pursuant to the private placement, exercisable at the offering price of US$0.75. CGX has also agreed to pay a commission on closing equal to 7% of the gross proceeds of the private placement.

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 Units remains subject to the acceptance thereof by the TSX Venture Exchange and to the completion of definitive transaction documentation.

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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 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.