CGX Energy Provides Operational Update

(TSX-V | OYL) 
TORONTO, June 20, 2014 /CNW/ - CGX Energy Inc. (TSX-V - OYL) ("CGX Energy" or 
the "Company") today provided an operational update on its exploration assets 
in Guyana. 
Dewi Jones, Chief Executive Officer of the Company, commented: "We are very 
pleased with the progress of all our activities thus far in 2014. We continue 
to work towards drilling our next offshore exploration well in Guyana and are 
still optimistic that a joint venture partner will be secured prior to 
Corentyne Block 
Seismic Reprocessing and AVO Analysis 
At the Company's 100% owned Corentyne petroleum prospecting licence (the 
"Corentyne PPL") located offshore Guyana, the reprocessing and merging of the 
existing seismic surveys is now complete.  The Company continues to have a 
technical data room available at its Houston offices and is working towards 
farming out a portion of the Corentyne PPL to a joint venture partner. 
In addition to the completion of the seismic reprocessing of the Corentyne 
PPL, a full elastic seismic inversion and AVO (Amplitude Variation with 
Offset) has been completed and received from Vector Seismic Data Processing, 
Inc., which has contributed significantly to the risk assessment of the 
exploration prospects being considered for the next drilling campaign in the 
Corentyne PPL. 
The results of the reprocessing have assisted in confirming and enhancing the 
geological assessment of the block. The Company has made this information 
available in its data room and potential joint venture partners are in the 
process of reviewing the data. While these AVO analysis and results are 
subject to the uncertainties associated with geophysical/geological modeling, 
the Company is encouraged by the results and remains optimistic about a 
potential discovery of hydrocarbons in the basin. 
Rig Contract and Rig Sharing Agreement 
CGX Energy is pleased to announce that it has entered into a definitive rig 
agreement with Japan Drilling Co., Ltd. for the provision of rig services.  
Under the terms of the agreement, the Company has procured the use of the 
jack-up drilling rig known as the "HAKURYU-12" rig. 
In an effort to significantly reduce drilling costs, the Company has 
simultaneously entered into a rig sharing agreement with Teikoku Oil 
(Suriname) Co., Ltd., a wholly-owned subsidiary of INPEX CORPORATION ("INPEX"). 
The HAKURYU-12 rig, which is owned by BOT Lease Co., Ltd., is currently under 
construction at the PPL Shipyard in Singapore and will be mobilized to the 
first drilling site after completion in January 2015. The main commercial 
terms of the rig contracts are as follows: 

    |Rig Contract Parties:          |Japan Drilling Co., Ltd.       |
    |                               |CGX Resources Inc.             |
    |Rig Shareing Agreement Parties:|CGX Resources Inc.             |
    |                               |Teikoku Oil (Suriname) Co., Ltd|
    |                               |Japan Drilling Co., Ltd.       |
    |Operating Area:                |Offshore Suriname and Guyana   |
    |Period of Contract:            |One (1) firm well each (total  |
    |                               |operating days: 150 or more)   |
    |Estimated Commencement Time:   |Q2, 2015                       |
    |Contract Type:                 |Day Rate Contract              |
    |Contract Signing Date:         |June 19, 2014                  |

In addition, CGX Energy and INPEX have agreed that INPEX shall drill the first 
offshore well in Suriname in 2015.

Spud Date Extension

This week, the Company received a five month extension to its spud date 
deadline at the Corentyne PPL.  The Government of Guyana granted approval of 
an extension on the spud date on the first commitment well from May 31, 2015 
to October 31, 2015.  The extension was required to ensure that the HAKURYU-12 
rig will have sufficient time to arrive in Guyana prior to the commencement of 
the weather window.

Professor Suresh Narine, Co-Chairman of the Company, commented: "The Company 
deeply appreciates the co-operation of the Government of Guyana in granting to 
CGX Energy the spud date extension.  The procuring of the HAKURYU-12 drilling 
rig along with this extension significantly enables the Company to address its 
work obligations under the Corentyne PPL with confidence. CGX Energy, being 
one of the long standing operators in the basin, is delighted to affirm its 
continued commitment to Guyana and to exploration of the Guyana-Suriname 
Basin.  The Company's current drilling obligations tangibly demonstrate this 
commitment, even as it is engaged in actively planning for the spudding of its 
next well within the Corentyne PPL within the revised timeframe."

Demerara Block

CGX Energy has commenced the procurement process in order to complete its 2014 
work commitments on its 100% owned offshore Demerara petroleum prospecting 
licence (the "Demerara PPL").   The Company continues to examine methods to 
reduce the costs associated with the Demerara PPL's seismic survey and expects 
to be able to share these costs with other companies operating in the 
Guyana-Suriname basin.

Dewi Jones, Chief Executive Officer of the Company, commented: "The Company 
currently has a number of initiatives that it is rigorously working on as it 
begins to fulfill its commitments in all three of its PPLs. The Company 
continues to believe in the potential of the basin and the discovery of 
hydrocarbons and also reaffirms its commitment to the successful completion of 
its work programs."

About CGX Energy

CGX Energy is a Canadian-based oil and gas exploration company focused on the 
exploration of oil in the Guyana-Suriname Basin.

About INPEX:

INPEX is the largest Japanese oil & gas exploration and production company 
that ranks high among the mid-tier international oil and gas E&P companies 
(independents). INPEX is currently carrying out more than 70 oil and natural 
gas projects across 28 countries, including two large scale LNG project, 
Ichthys LNG Project in Australia and Abadi LNG Project in Indonesia as the 
Operator. INPEX aims to become a top class international oil & gas exploration 
and production company through sustainable growth in the oil and gas 
development business. With natural gas as the core of our business, INPEX will 
grow into an integrated energy company by making contributions to a stable 
energy supply to broader communities.


Forward-Looking Statements: 
This news release contains forward-looking statements. Forward-looking 
statements are frequently characterized by words such as "plan", "expect", 
"project", "intend", "believe", anticipate", "estimate", "may", "will", 
"would", "potential", "proposed" and other similar words, or statements that 
certain events or conditions "may" or "will" occur in the future. These 
forward-looking statements are based on certain key expectations and 
assumptions made by CGX Energy. CGX Energy believes the expectations and 
assumptions on which it develops forward-looking statements are reasonable; 
however, undue reliance should not be placed on forward-looking statements as 
there can be no assurance they will prove to be correct. Since forward-looking 
statements address future events and conditions, by their very nature they 
involve inherent risks and uncertainties. Actual results could differ 
materially from those currently anticipated due to a number of factors and 
risks. In addition, other risks that may affect the forward-looking statements 
in this news release are outlined further in the Company's Annual Information 
Form dated March 5, 2014 filed on SEDAR at

The forward-looking statements contained in this news release are made as of 
the date hereof and CGX Energy undertakes no obligation to update publicly or 
revise any forward-looking statements or information, whether as a result of 
new information, future events or otherwise, unless so required by applicable 
securities laws.

SOURCE  CGX Energy Inc. 
 Michael Galego, General Counsel and Secretary at (416) 843-3858 
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CO: CGX Energy Inc.
ST: Ontario 
-0- Jun/20/2014 13:48 GMT
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