CGX ENERGY INC.

Waking the Sleeping Giants

OYL.U

USGS Predict 6 Giant Oilfields • USGS estimate 15.3 billion barrels oil 42 tcf gas • ranked 2 nd as under explored basin

Guyana/Suriname Basin

• • estimate 117 oil fields 24 elephants > 100 million barrels

Venezuela Guyana Suriname

• of which 6 are giants > 500 million barrels CGX

Mean Undiscovered Conventional Oil Brazil Mexico Venezuela Guyana/S Argentina Ecuador Trinidad 10 20 30 Oil Resource, billion bbls

Source: United States Geological Service

World Petroleum Supply 2000

40 50 CGX

Regional Activity • Trinidad • 24 tcf reserves • Deltana Platform • 38 - 80 tcf potential • 5 new concessions • $41 mm bonuses • Tambaredjo • OOIP 900 billion barrels • 174 billion barrels recoverable CGX

Feb 2003 Visit to Suriname CGX

Land Rig - Tambaredjo • 14,000 bopd • 625 wells • Drilling 75 wells per year CGX

Our Concessions • 6.6 mm acres gross • 4.5 mm acres net • Corentyne Block (100%) • Offshore • Eagle • Wishbone • Annex •Onshore • Georgetown Block (25%) CGX

Area of Overlapping Border Claims • Guyana claims a border of N33E • Suriname claims a border of N10E • Inability to resolve differences has frozen exploration in the basin CGX

Bilateral Negotiations not Progressing • Impediments to a Bilateral Solution – “strength of feeling by the respective populations – the firm and apparently intractable positions adopted by both sides – the history of past efforts” • “Easier for the people of both countries to accept settlement terms, which are arrived at by processes and procedures, regarded as independent and/or which employ a judicial approach” (Rashleigh Jackson) CGX

A Logical Resolution • For maritime space – both countries are signatories to and have ratified the UN Law of the Sea Convention – Where complications such as islands do not exist, this process can be fairly expedient • For land boundary – the OAS has a mechanism for helping member states to solve border problems CGX

Regional Benefit of Awakening Giant 1 Giant – Would Double Guyana’s GDP 2,000 1 Giant Oil Field 1,500 1,000 Assumptions • 500 million bbls • 50 million bbls/year • US$ 20 per bbl Indirect Taxes Gov't Services Services Eng & Construction 500 Manufacturing Mining & Quarrying Forestry & Fishing Agriculture 0 1995 1997 1999 2001 2003 2005 Source: Bank of Guyana to end 1999 CGX

1 Giant – Would Double Gov’t Revenue

Gov't Receipts Gov't Expenditures

400 400 300 300 200 200 100 100 0 1995 1996 Current 1997 Capital 1998 1999 2000 External Grants 0 1995 1996 1997 1998 1999 2000 Year 1 of production gov’t revenue ~ US$ 100 million Year 5 of production gov’t revenue ~ US$ 400 million Does not include tax on workers and services CGX

Guyana’s Fiscal Regime Promotes Exploration

United Kingdom GUYANA Argentina U.S. Gulf of Mexico Peru Australia (offshore) Alberta China (offshore) Norway Russia (PSC) Indonesia (1994) Nigeria (Niger delta) Venezuela Malaysia

0% Source: Int’l Petroleum Encyclopedia 1998 Guyana: APEX Eng Sept 1998 20% 40% 60% 80% 100%

Company Take Government Take

CGX

Work Commitment from June 1998 to June 2000 to June 2002 to Dec 2004 to June 2005 to June 2008 1,800 km seismic - done Exploration well - done 3300 km vintage seismic – done Reprocess 800 km - ¼ done Onshore GeoChem Pilot 1,500 km 2-D or 500 km 2 3-D seismic or exploration well 2 exploration wells CGX

Our Shareholders • OYL.U on TSXV • 52 week hi US$.40 low US$0..145

• shares o/s 48.6 million, f/d 54.2 million • over 5000 shareholders – institutions in UK, USA, France, Germany, Canada • raised US $16 million • Sold Canadian properties for US $0.6 mm • current working capital US $1.1 million CGX

CGX

Technical Risk – Exploring for Turbidite Giants • Source rock / timing – 95% • Seal – 75% • Reservoir – 50% • Structure – 75% • Oil vs gas – 75% • Overall Probability of Success – 20% CGX

Source Rock & Timing – 95%

Canje Formation • 2-6% TOC • > 300 metres thick • mature – 95% in oil window • oil in Tambaredjo typed to Canje Source • equivalent age to La Luna source rock in Venezuela

CGX

Seal – 75%

Abary #1 • 6000’ shale seal • 23‘ turbidite sand • mud kick at 2000 bpd • 34.5

o API oil in mud • Shell drilled in 1974 Eagle and Wishbone • seismic tied to Abary • turbidite sand thickness greater than 600 feet

CGX

Reservoir – 50%

• main risk is sand quality • over 5000’ onshelf sand in Horseshoe #1; • Oligocene turbidite fans: Eagle and Wishbone; • Turonian source rock: mature Canje formation over 300’ thick • Miocene seal: over 6000’ of shale in Abary #1

CGX

Eagle Wishbone

Structure – 75%

• Top of fan at Eagle and Wishbone marked by coincident amplitude and AVO anomalies; • Flat spot is interpreted as oil-water contact; • Draping in Miocene shales is observable • Eagle anomaly is about 13 km in width and Wishbone about 7 km; • Eagle defined on 8 other strike lines at 2 km intervals.

Oil vs Gas – 75%

• Abary #1 tested oil • buoyancy considerations over 1700 feet of structure • Amplitude and AVO anomalies terminate simultaneously at interpreted oil-water contact and at updip pinchout on paleo-shelf; • Eagle anomaly is over 15 km in length.

Turbidite Fan Targets – 20% Probability of Success

• Geological model equivalent to Campos Basin, Brazil • Similar age to turbidite reservoirs in East Venezuela Basin and Trinidad • “Giant” and “near-giant” size

CGX

Annex Lead Map Toe Thrust Line 31 Amplitude Lead with Flat event CGX

Line 31 Toe Thrust Lead 6 km CGX

Annex Toe Thrust Detail High amplitude package On depth Flat Reflections CGX

Line 4 Amplitude Lead Line 25 intersection 8 Km CGX

Annex Corentyne Block • Acquired 3800 Km of Deminex data • Reprocess and interpret • Wide line spacing • Identified Leads need definition Well Location

20 km

Oil show CGX

Dip Line 25 Amplitude Lead Flat Reflection Line 4 Intersection 10 km CGX

Detail on Flat Reflection Line 25 CGX

Onshore Block CGX

Onshore Block with Staatsolie Nickerie Geochemical survey CGX

Onshore Block Geochemical and Oil /Gas Shows Onshore Oil Fairway CGX

Geochemical Surveys • GMT, Gore • Micro seepage vs Seepage • Quantification and maturity of source • Aeromag, gravity • Phase 1 Capital 0.5 MM$ US explore using various structure CGX

Seismic, then drilling • Use geochemical and potential fields to define seismic targets and and follow up with drilling • Reduce amount and costs for seismic and focus on drill targets to reduce cycle CGX

CGX Energy Inc.

For more information www.cgxenergy.com