CGX Energy Co fka OYLU

[kraftdinner]

ON Energy Rights Offering and Onshore Drilling Program Update
NEWS RELEASE TRANSMITTED BY CCNMatthews


TORONTO, ONTARIO--(CCNMatthews - Sept. 27, 2004) - CGX Energy Inc.
(OYL.U - TSX-V) and its subsidiary ON Energy Inc. are pleased to
report the results of the ON Energy Annual General Meeting held on
September 23, 2004 in Georgetown, Guyana.

At the annual meeting, ON Energy announced a rights offering for its
shareholders. The terms of the Rights Offering are that each
shareholder shall be given two rights for each ON share held, each
right entitling the shareholder to purchase one ON common share for
US$ 0.06 per share. 141,800,000 rights will be issued for a total
offering of US$8.5 million. Guyana Americas Merchant Bank Inc. of
Georgetown, Guyana has agreed to underwrite 63.8 million shares of
the Rights Offering for US$3,828,600. CGX Energy will participate in
the Rights Offering. If all the rights are exercised, CGX will hold
approximately 57% of ON Energy.

The funds raised from this Rights Offering will be used primarily to
fund exploration activities within the Berbice Block, including the
upcoming drilling program recently announced by ON Energy and for
general working capital purposes.

Management of ON Energy also reported that preparations for the
drilling program are proceeding on the defined drill targets. On
shore logistics are on schedule, including warehousing, road building
and drill pad preparation. ON Energy has agreements for drilling and
other services in place subject to finalizing contracts. Drilling
supplies, mud and other items including casings have been purchased
and are scheduled to leave from Louisiana, USA by barge through the
Gulf of Mexico. The shipment of these supplies has not received
clearance due to the stream of recent hurricanes in this region and
as a result the shipments have been delayed.

Kerry Sully, President of CGX and Chairman of ON Energy stated "We
are pleased to have condensed into one year all of our preliminary
exploration, successfully scheduling our operations into Guyana's dry
season. By fast-tracking our operation, we had hoped to start
drilling in the fourth quarter of 2004, but unfortunately hurricanes
in the Gulf of Mexico and the Caribbean have delayed drilling until
January 2005."

Warren Workman, Vice-President of CGX and President of ON Energy
added "Our new seismic has supplemented 8 prospects that had been
identified as leads with our geochemical program. Further, an
enhanced geochemical analysis on recently acquired samples suggests a
likelihood of lighter oil. We are encouraged that closing this rights
issue should allow us to expand our drilling program to test
additional targets."

CGX Energy is a Canadian-based oil and gas exploration company
focused on the exploration for oil in the Guyana. CGX is managed by a
team of experienced oil and gas and finance professionals from
Canada, U.S.A. and the UK. CGX is financed internationally and has
thousands of shareholders worldwide.

THIS PRESS RELEASE WAS PREPARED BY CGX ENERGY INC., WHICH ACCEPTS THE
RESPONSIBILITY AS TO ITS ACCURACY. THE TSX VENTURE EXCHANGE DOES NOT
ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Trading Symbol: OYL.U

Outstanding: 80,230,595

Fully - Diluted: 93,039,913


FOR FURTHER INFORMATION PLEASE CONTACT:

CGX Energy Inc.
Kerry Sully
President & CEO
[phone]
or
CGX Energy Inc.
Charlotte May
Investor Relations
[phone]
or
CGX Energy Inc.
Denis Clement
Director
[phone]
Website: www.cgxenergy.com