CGX Energy Inc. Completes $92 Million Bought Deal Financing

NOT FOR DISTRIBUTION TO US NEWS WIRE SERVICES OR DISSEMINATION IN THE US.

TORONTO, ONTARIO -- (Marketwire - Oct. 19, 2011) - CGX Energy Inc. (TSX VENTURE: OYL) ("CGX" or the "Company) is pleased to announce that it has closed its previously announced offering of common shares at $0.70 per share (the "Offering"). Pursuant to the Offering, CGX has issued 131,445,000 common shares (the "Common Shares") of the Company for gross proceeds of $92,011,500 which included the full exercise of the over-allotment option. The Offering was led by Cormark Securities Inc. and included GMP Securities L.P., Canaccord Genuity Corp., Macquarie Capital Markets Canada Ltd., Jennings Capital Inc. and Toll Cross Securities Inc. (collectively, the "Underwriters"). As compensation for their services in connection with the Offering, an aggregate underwriting fee of $5,520,690 was paid to the Underwriters by the Company. Completion of the Offering is subject to receipt by the Corporation of the final approval of the TSX Venture Exchange in connection therewith.

Stephen Hermeston, President and CEO stated, "This financing provides CGX with the necessary funding for its share of the expected costs for two wells offshore Guyana – the Jaguar-1 well on our 25% owned Georgetown Petroleum Prospecting License ("PPL") and the Eagle-1 well on our 100% owned Corentyne PPL. It will also allow us to prepare for a second well on the Corentyne PPL and to further develop our exploration portfolio with ongoing studies. We will continue to pursue joint venture partners, but are no longer dependent on them to complete the next two wells."


CGX is a Canadian-based oil and gas exploration company focused on the exploration for oil in the Guyana / Suriname Basin, an area that is ranked second in the world for oil and gas prospectivity by the United States Geological Service. CGX is managed by a team of experienced oil and gas and finance professionals from Canada, the US and the UK. Additional information on CGX may also be examined and/or obtained through the internet by accessing the website of CGX at www.cgxenergy.com.


The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of any offer to buy nor will there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction.


Forward Looking Statements

This press release contains forward-looking statements. More particularly, this press release contains statements which include, but are not limited to the anticipated use of proceeds, the receipt of the required regulatory and third party approvals.

The forward-looking statements are based on certain key expectations and assumptions made by CGX. Although CGX believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because CGX can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. The intended use of the net proceeds of the Offering by CGX might change if the board of directors of CGX determines that it would be in the best interests of CGX to deploy the proceeds for some other purpose.

The forward-looking statements contained in this press release are made as of the date hereof and CGX undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.


NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.



Contact Information

CGX Energy Inc.
Kerry Sully, Executive Chairman
(604) 733-9647
ksully@cgxenergy.com

CGX Energy Inc.
Stephen Hermeston, President and CEO
(281) 644-0139
shermeston@cgxenergy.com

CGX Energy Inc.
Charlotte May, Communications Manager
(416) 364-3353
cmay@cgxenergy.com
www.cgxenergy.com