That's the word from the company.

CGX says the survey has identified a number of significant sized areas with seepage readings well above background.

During October 2003, 8,000 soil samples were taken in the Berbice onshore block in Guyana. At the GeoMicrobial Technologies (GMT) laboratory in Oklahoma, USA, 4,000 samples have now been analyzed for microbes that flourish in the presence of hydrocarbon micro seepage.

"We are very encouraged by the initial results," stated Warren Workman, Vice President of Exploration. "As a result of the favourable sampling, additional infill samples on the large seepage areas will be analyzed. Sorbed gas analysis will also be performed on targeted areas. The sorbed gas analysis will assist in fingerprinting the hydrocarbons in the areas with elevated microbial concentrations."

"Our preliminary exploration is proceeding well and we look forward to an accelerated exploration programme early in the new year," said Kerry Sully, President and Chief Executive Officer. "The analogies in the basin are the Tambaredjo and Calcutta oilfields onshore Suriname. Tambaredjo is estimated to have 167 million barrels recoverable and Calcutta 15 million barrels recoverable.

The 800,000-acre Berbice block is held by ON Energy Inc., a Guyanese registered company, currently held 100 per cent by CGX. ON has filed a prospectus to raise up to US$750,000 in Guyana, which if closed for the full amount would decrease CGX's share to 80 per cent. Subject to regulatory approval in Guyana, the closing will be extended to December 19, 2003 and is subject to raising a minimum of US$500,000.

CGX Energy Inc. 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.