Joint Venture Spuds Wei-1 Well Offshore Guyana

CGX Energy release

TORONTO, 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 sands within channel and fan complexes 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 inriver construction activities, including necessary dredging of the river, in Q1 of 2023.