CGX Energy consequently closed a non-brokered private placement on Monday, raising a total of US$2,292.034.

The completion of this financing will allow the company to advance its exploration programmes on its extensive onshore and offshore licenses in Guyana.

A statement from Toronto, Ontario, says the private placement consisted of one common share priced at US$0.25 and one-half common share purchase warrant. Each whole warrant entitles the holder thereof to subscribe for one common share at the price of US$0.35 for a period of 18 months, expiring June 1, 2005. In connection with the foregoing financing, finders' fees in the amount of $54,675 were paid by CGX Energy.

"After observing encouraging early stage exploration by Staatsolie onshore Suriname, we decided to follow their example on our adjacent Prospecting Licence, onshore Guyana," said Kerry Sully, President and Chief Executive Officer of CGX Energy. "After a filed reconnaissance trip in July, Warren Workman, Vice-President of Exploration designed a geochemical sampling programme, taking samples on a 250-meter grid. Those 8,000 samples are now in Oklahoma for detection of microbes that would be associated with micro seepage of hydrocarbons from underlying reservoirs. Results will be announced when available."

"Further," Mr. Sully stated, "through Patterson, Grant and Watson in Toronto, we've been able to acquire and have re-interpreted regional aeromagnetic data that has identified basement highs and a number of significant sub-surface faults, features that can lead to structures that will trap hydrocarbons. Our hope is to find areas where geochemical anomalies overlie these structures.'

"Encouraged by our initial analysis, we licensed an additional 387,000 acres from the Government of Guyana. This increases CGX's land position in the Berbice onshore exploration block to over 800,000 acres, almost two-thirds the landmass of neighboring Trinidad. Using geochem and aeromag data, we're completing our preliminary survey of a very large area for less than US$600,000. The funds just raised will allow us to follow-up any positive results with 2-D seismic or drilling."