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CGX Energy Inc. and Frontera Energy Corporation: Joint Venture Spuds Wei-1 Well Offshore Guyana

Aiming To Build On Light Oil And Condensate Discovery At Kawa-1

Toronto, Ontario--(Newsfile Corp. - January 23, 2023) - CGX Energy Inc. (TSXV: OYL) ("CGX Energy") operator and joint venture partner with Frontera Energy Corporation in the Petroleum Prospecting License for the Corentyne block offshore Guyana (the "Joint Venture"), today announced the spud of the Wei-1 well, on the Corentyne block, approximately 200 kilometres offshore from Georgetown, Guyana.

The Joint Venture also announces that the Government of Guyana has approved an Appraisal Plan for the northern section of the Corentyne Block which commenced with the Wei-1 well. Following completion of Wei-1 drilling operations and upon detailed analysis of the results, the Joint Venture may consider future wells per its appraisal program to evaluate possible development feasibility in the Kawa-1 discovery area and throughout the northern section of the Corentyne Block. Any future drilling is contingent on positive results at Wei-1 and the Joint Venture has no further drilling obligations beyond the Wei-1 well.

The Wei-1 well is located approximately 14 kilometres northwest of the Joint Venture's previous Kawa-1 light oil and condensate discovery and will be drilled in water depth of approximately 1,912 feet (583 metres) to an anticipated total depth of 20,500 feet (6,248 metres). The Wei-1 well will target Maastrichtian, Campanian and Santonian aged stacked sand channels that are part of a channel/fan complex in the northern section of the Corentyne block. The well is expected to take approximately 4-5 months to reach total depth.

Professor Suresh Narine, Executive Co-Chairman of CGX Energy's Board of Directors, commented:

"The Joint Venture is pleased to announce that it has spud the Wei-1 well, offshore Guyana and that the Government of Guyana has approved the Joint Venture's appraisal program. Wei-1 will appraise both the Kawa-1 discovery as well as explore additional opportunities within the Corentyne Block. The Wei-1 well is on-trend, and well positioned for success with both Kawa-1 and recent peer discoveries immediately adjacent to the northern section of the Corentyne block. The Joint Venture is grateful for the Government of Guyana's ongoing support as we worked towards spudding Wei-1 in accordance with the previously agreed terms, and we look forward to potentially delivering another discovery for our shareholders and the Guyanese people."

Berbice Deep Water Port

CGX Energy continues to advance the Berbice Deep Water Port ("BDWP") project, and to date has spent over $22 million on the BDWP project, through its wholly owned subsidiary Grand Canal Industrial Estates. The port facility intends to serve as an offshore supply base for the oil and gas industry and as a multi-purpose terminal to service agricultural import/export, containerized and specialized cargo including aggregates for construction purposes. The BDWP aims to enable provisioning of operators and vendors in territorial waters of both Guyana and Suriname. Production of concrete piles and other concrete pre-stressed structures for the in-river construction of a 50 x 12 m access trestle being built from the quayside yard westward into the Berbice river, have begun and are almost completed. This will be immediately followed by in-river construction activities, including necessary dredging of the river, in Q1 of 2023.

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

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 and the development of a deep-water port in Berbice, Guyana.

Advisories

Cautionary Note Concerning Forward-Looking Statements:

This press release contains forward-looking information within the meaning of Canadian securities laws. Forward-looking information relates to activities, events or developments that CGX Energy believes, expects or anticipates will or may occur in the future. Forward-looking information in this press release includes, without limitation, statements relating to CGX Energy's expectations as to exploration and development plans and objectives with regards to the Wei-1 well, including drilling plans and time to complete the Wei-1 well, the Joint Venture's consideration of future wells per its appraisal program following completion of the Wei-1 well and dependent upon detailed analysis of the results, and other exploration opportunities. All information other than historical fact is forward-looking information.

Forward-looking information reflects the current expectations, assumptions and beliefs of CGX Energy based on information currently available to it and considers the experience of CGX Energy and its perception of historical trends. Although CGX Energy believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be placed on such information. Forward-looking information is subject to a number of risks and uncertainties, some that are similar to other oil and gas companies and some that are unique to CGX Energy. The actual results of CGX Energy may differ materially from those expressed or implied by the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on CGX Energy. CGX Energy's management's discussion and analysis for the year ended December 31, 2021, and quarter and nine months ended September 30, 2022, and other documents of CGX Energy filed from time to time with the securities regulatory authorities describe the risks, uncertainties, material assumptions and other factors that could influence actual results and such factors are incorporated herein by reference. Copies of these documents are available without charge by referring to CGX Energy's profile on SEDAR at www.sedar.com. All forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, CGX Energy disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise.

For further information please contact: Todd Durkee, Vice President, Development, CGX Energy Inc., (832) 300-3200, 333 Bay Street, Suite 2400, Toronto, Ontario M5H 2T6, www.cgxenergy.com.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/152138