CGX Energy Files First Quarter Financial Statements

(TSX-V | OYL)

TORONTO, April 29, 2014 /CNW/ - CGX Energy Inc. (TSX-V - OYL) ("CGX Energy" or the "Company") announced today the release of its unaudited consolidated financial results for the quarter ended March 31, 2014, together with its Management Discussion and Analysis.  These documents will be posted on the Company's website at www.cgxenergy.com and on SEDAR at www.sedar.com.

First Quarter 2014 Overview and Highlights

CGX Energy reported a net loss of $1,185,644 or $0.02 per share for the three month period ended March 31, 2014, compared with a net loss of $1,074,921 or $0.03 per share for the same period in 2013.

During the first quarter of 2014, CGX Energy continued to focus on cost cutting initiatives and, as a result, the Company's general and administrative costs for the three month period ended March 31, 2014 have decreased by approximately $19,000 per month to $436,269.  In addition, management and consulting fees have decreased by $255,402 to $543,988, as compared to the same period in 2013. The Company expects general and administrative costs to decrease further in the second quarter, while management and consulting fees are expected to be consistent in the coming quarter as a result of the joint venture process and the Company's ongoing litigation with Repsol Exploracion, S.A.

As announced on February 25, 2014, CGX Energy has entered into a Memorandum of Understanding with Teikoku Oil (Suriname) Co., Ltd., a wholly-owned subsidiary of INPEX CORPORATION and PETRONAS Suriname E&P B.V (PSE PBV), for rig sharing in the Guyana-Suriname basin and the Company plans to utilize this rig for the drilling of its commitment well under the Company's Corentyne petroleum prospecting licence (the "Corentyne PPL").

The reprocessing of the seismic data relating to the Corentyne PPL and the merging of the existing seismic surveys was completed in April.  The Company is now in the process of re-interpreting the seismic data to delineate a new prospect on the Corenytne PPL with the assistance of Pacific Rubiales Energy Corp. and its technical staff.  CGX Energy will be providing the new data to potential joint venture partners with a view to farming out the Corentyne PPL.  In the short term, the Company will likely require additional financing and seek to widen its shareholder base, but still with a view to negotiating farm-out transactions as the primary way to enhance shareholder value. 

The Company continues to actively pursue and explore strategic joint venture partnerships for all three of its petroleum prospecting licenses in Guyana and has a technical data room open at its Houston office.

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.

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]