Mr. Todd Durkee reports

CGX ENERGY UPDATES: ANNOUNCES FILING OF FIRST QUARTER FINANCIAL STATEMENTS AND DRILLING OPERATIONAL UPDATES

CGX Energy Inc. has released its unaudited consolidated financial statements for the first quarter of 2023, together with its management's discussion and analysis -- quarterly highlights. These financial disclosures will be posted on the company's website and on SEDAR. All values in the financial disclosures are in U.S. dollars unless otherwise stated.

Company highlights

Wei-1 well operational update

The Wei-1 well is currently being drilled by CGX and Frontera Energy Corp. CGX Energy holds a 32.00-per-cent participating interest with Frontera holding the remaining 68.00-per-cent participating interest in the Corentyne block. The well, planned to be drilled to a total depth of 20,500 feet, to date, has been drilled to a depth of 19,142 feet. Wei-1 is located 14 kilometres west of the Kawa-1 discovery well announced by the joint venture partners last year.

Operations were interrupted when a wireline fluid sampling tool became stuck in the well and was not recovered. An open-hole sidetrack will begin shortly from below the last casing point and will progress to the planned total depth. The JV partners expect the well to be completed within the original time frame announced on Jan. 23, 2023, of four to five months after spudding the well.

The well has encountered multiple oil-bearing intervals in the western channel fan complex of the northern portion of the Corentyne block in formations of Maastrichtian and Campanian ages. A comprehensive logging campaign in the Maastrichtian interval indicated the presence of medium sweet crude oil of 24.9 API. Downhole fluid analysis confirmed light sweet crude oil in the Campanian interval. Logging while drilling (LWD) and cuttings indicated the presence of hydrocarbons in the upper portion of the Santonian. Fluid samples have not yet been obtained. Core samples will be attempted in the Santonian interval when drilling resumes. It is not yet certain that the hydrocarbons encountered to date in the well are yet sufficient to underpin commercial development on the northern portion of the Corentyne block.

As drilling operations continue, the joint venture has revised its well total cost estimates to approximately $175-million to $185-million to reach the target total depth, complete the anticipated logging runs and complete the well. The increase in cost includes the delays associated with the late release of the rig by a third party and adjusting the spud date to January, 2023, and costs associated with fishing and sidetrack operations. CGX Energy is required to finance its 32-per-cent interest, after partner carry, of approximately $11-million to $15-million, and is currently assessing strategies to fulfill this obligation.

About CGX Energy Inc.

CGX Energy is a Canadian-based oil and gas exploration company focused on the exploration of oil in the Guyana-Suriname basin and the development of a deepwater port in Berbice, Guyana.

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