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 2nd as under explored basin estimate 117 oil fields 24 elephants > 100 million barrels of which 6 are giants > 500 million barrels Guyana/Suriname Basin USGS supports potential of many large reservoirs in this basin Venezuela Guyana Suriname

Mean Undiscovered Conventional Oil Source: United States Geological Service World Petroleum Supply 2000

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 Replace with more up-to-date map.

Feb 2003 Visit to Suriname

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

Our Concessions 6.6 mm acres gross 4.5 mm acres net Corentyne Block (100%) Offshore Eagle Wishbone Annex Onshore Georgetown Block (25%) Replace with more up-to-date map.

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

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)

A Logical Resolution For maritime space For land boundary 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

Regional Benefit of Awakening Giant 1 Giant – Would Double Guyana’s GDP Assumptions 500 million bbls 50 million bbls/year US$ 20 per bbl Source: Bank of Guyana to end 1999

1 Giant – Would Double Gov’t Revenue 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

Guyana’s Fiscal Regime Promotes Exploration Source: Int’l Petroleum Encyclopedia 1998 Guyana: APEX Eng Sept 1998

Work Commitment from June 1998

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

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%

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

Seal – 75% Abary #1 6000’ shale seal 23‘ turbidite sand mud kick at 2000 bpd 34.5o API oil in mud Shell drilled in 1974 Eagle and Wishbone seismic tied to Abary turbidite sand thickness greater than 600 feet This slide shows the grid of data over the eagle and wishbone features that we are currently processing.

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

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. Eagle Wishbone

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

Annex Lead Map Toe Thrust Line 31 Amplitude Lead with Flat event Two types of Anomalies noted toe thrust amplitude anomaly age uncleaar due to different correlations Lower Miocene to upper most Cretaceous?? Area is located along way from the mature area at center of basin Existing wells tested heavy oil from upper Tertiary in Berbice# 2 on growth fault feature Risk is high for reservoir maturity/ migration Possible development of reservoir for faulted out section in both Essequibo #1 and Essequibo #2 due to normal growth faulting Long distance migration required

Line 31 Toe Thrust Lead 6 km Deep water for toe thrust on CGX Annex Down slope slumping evident Reservoir and migration Chief risks Good Seal Maturity of nrarby source rockd=s not certain so long distance migration Required Other toe thrust possible as seismic coverage available

Annex Toe Thrust Detail High amplitude package On depth Flat Reflections Annex Line 31 toe thrust with colour detail

Line 4 Amplitude Lead Line 25 intersection 8 Km

Annex Corentyne Block Acquired 3800 Km of Deminex data Reprocess and interpret Wide line spacing Identified Leads need definition 20 km Oil show Well Location

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

Detail on Flat Reflection Line 25

Onshore Block

Onshore Block with Staatsolie Nickerie Geochemical survey 1 Km grid to isolate anomalies using Gore technology by Suriname Currently the second phase has been surveyed and the results are being reviewed. Indications are that the anomalies contact a lighter crude signature than Tambaredjo. Deeper Basin depths to the reservoir at Nickerie than at Paramaribo Would support rhis conclusion (less degardation of the crude) Did not survey near coast area eo additional anomalies may appear on the Nickerie block

Onshore Block Geochemical and Oil /Gas Shows Map shows the CGX onshore Block with the anomalies from the published Suriname features. Two wells on the block has indicated oil and gas shows the Rosehall and the Skelton . Propsed geocehmical survey could be done in October and November of 2003 for a cost of 100,000 to 300,000 dollars USD Tactics use 3 man crews with supervision by local and contractor. Set up headquarters at new amsterdam Samples must be dried and stored each day down load GPS readings Ship samples each week Equipment shovel and GPS with digital storage Purchase GPS Contractor supplies sample bags and containers Collect samples every 250 m along raodways and access Analyse every second sample initially Follow up with seismic and drilling Onshore Oil Fairway

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 Mapping of geochemical will show seepages and microseepage Microseepage is a result of the vertical migration of hydrocarbons associated With hydrocarbons trapped at depth with a water drive. It is less effective when associated with heavy oils. The success that statts olie has achieved mitigates that risk We will be searching for microbes tat live off the butane gas If successful we will follow up with Sorbed gas samples which we intend to collect at the same time Seeepages are associated with migrating hydrocarbons that breach to surface and are typically associated with tar sands and stressed vegetation. These have significant vlumes of ol and gas at surface and are found associated with many basins in the world

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

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