CGX Energy Inc.

CGX Energy Inc. (OYL.U – TSX-V) is a Canadian-based oil and gas company focused on exploring for oil in the Guyana-Suriname basin. CGX and others view the Guyana-Suriname Basin as attractive for high-risk exploration for hydrocarbons. The United States Geological Survey (USGS) has identified the Guyana-Suriname Basin as having the 2nd highest resource potential after Greenland among unexplored oil basins in the world. The USGS estimates mean recoverable oil reserves of 15.2 billion bbls and gas reserves of 42 trillion cubic ft.

CGX Energy ranks as the 7th largest offshore concession holder in Latin America with licences covering 9.8 million gross acres, 7.7 million net. CGX has three licenses offshore in the Guyana-Suriname Basin and one onshore through its 62% owned subsidiary, ON Energy Inc. The offshore licences include the Corentyne Block (100%), the Georgetown Block (25%) and the Pomeroon Block (100%). Our offshore holdings exceed 2 billion barrel recoverable potential. Interest in the region has been heating up over the past year with the announcement of exploration programs by Chevron-Texaco, Statoil, Repsol YPF and Maersk and in October 2004, Chevron-Texaco announced a 33 mmcf/d gas discovery in a block adjacent to CGX’s Pomeroon Block.

In 2003, CGX formed a Guyanese subsidiary, ON Energy, and transferred its onshore portion of the Corentyne Block. ON Energy then expanded its onshore acreage to 800,000 acres. It is onshore where CGX is currently focusing its exploration activities. The onshore portion of our acreage has the potential for 250 million barrels recoverable. On August 19th, CGX in conjunction with its Guyanese registered subsidiary ON Energy announced that several prospects have been chosen for drilling onshore Guyana. Over the last year, a 3-stage exploration program combining aero-mag data, geo-chemical analysis and recently, a 2-D seismic program has confirmed a number of drillable structural and stratigraphic trap anomalies. Very good quality seismic data was obtained in the program completed in June 2004. An initial drilling program of 5 exploratory wells has been chosen based on technical merit and access considerations. Contingent on drilling success and final costs, the drilling program could be expanded to test other anomalies. Planning is well underway for the drilling operations scheduled to commence in January 2005.

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Dec 7 2004		Energy/Oil/Gas Virtual Forum

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