TORONTO, ONTARIO--
(Marketwire - Nov. 23, 2010) -




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



CGX Energy Inc. (TSX VENTURE:OYL) ("CGX" or the "Company) is pleased to announce that it has reached an agreement with a syndicate of underwriters led by Cormark Securities Inc. and including Canaccord Genuity Corp., Macquarie Capital Markets Capital Ltd., GMP Securities L.P. and Toll Cross Securities Inc. (collectively, the "Underwriters") in respect of its underwritten common share ("Common Shares") financing announced on November 22, 2010 to increase the size of the financing by 5,500,000 Common Shares. Under the agreement, the syndicate will now purchase from CGX 22,250,000 Common Shares at an issue price of
.90 per Common Share (the "Offering") for gross proceeds to CGX of approximately $20 million.


CGX will grant the Underwriters an option (the "Over-Allotment Option") to purchase up to an additional 15% of the Common Shares to cover over-allotments, if any, at a price of
.90 per Common Share for additional gross proceeds of approximately $3 million. The Over-Allotment Option is exercisable in whole or in part for a period of 30 days after and including the date of the closing of the Offering.


CGX intends to use the net proceeds of the Offering to fund CGX's capital program offshore Guyana and for general corporate purposes. The Common Shares will be offered in all provinces of Canada, with the exception of Quebec, by way of a short form prospectus.


Closing is expected to occur on or about December 14, 2010 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX-V and the applicable securities regulatory authorities.


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.