CGX Energy Announces Drilling Rig LOI with INPEX and Japan Drilling Co., Ltd.

(TSX-V | OYL)

TORONTO, June 2, 2014 /CNW/ - CGX Energy Inc. (TSX-V - OYL) ("CGX Energy" or the "Company") is pleased to announce that it has entered into a binding letter of intent ("LOI") with Teikoku Oil (Suriname) Co., Ltd., a wholly-owned subsidiary of INPEX Corporation ("INPEX" and CGX Energy, the "Rig Sharing Group"), and Japan Drilling Co., Ltd. ("JDC"), for use of the jack-up drilling rig known as the "Hakuryu-12" rig.

The LOI forms the basis of the definitive rig agreements between JDC and each of the members of the Rig Sharing Group.  The members of the Rig Sharing Group are required to enter into definitive rig agreements with JDC in order to reduce mobilization and demobilization costs.  The Hakuryu-12 rig will be delivered to Trinidad between April 1, 2015 and May 1, 2015.

Dewi Jones, Chief Executive Officer of the Company, commented:  "This LOI represents the next step in drilling at our 100% owned Corentyne Block.  Being a part of the Rig Sharing Group means that CGX Energy will benefit from significantly reduced mobilization and demobilization costs typically associated with offshore drilling. The Hakuryu-12 rig is a jack-up rig that fits the Company's well design specifications."

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.

About JDC:

JDC is Japan's sole offshore drilling contractor, and has been providing quality drilling services for more than 40 years. In addition to offshore drilling services, JDC provides Engineering Services, and R&D in relation to offshore drilling as well as oil and gas exploration and development, and also Horizontal Directional Drilling (HDD) services.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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 www.sedar.com.

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.

Suresh Narine, Co-Chairman at [phone] or [email protected]
Michael Galego, General Counsel and Secretary at [phone] or [email protected]