CanArgo Announces New Production Sharing Contract in Georgia.CALGARY, Alberta--(BUSINESS WIRE)--Feb. 24, 1998--CanArgo Energy Inc.(CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. :CNAR CNAR Calling Name Restriction ) CanArgo Energy Inc. (CDN:CNAR) today announced the execution of a new Production Sharing Contract (PSC (Public Service Commission) Same as PUC. ) for additional acreage in the Republic of Georgia. The contract, signed by the Georgian state oil company "Georgian Oil", following a decree from President Eduard Shevardnadze Eduard Shevardnadze (Georgian: ედუარდ შევარდნაძე; Russian: , gives CanArgo exclusive hydrocarbon hydrocarbon (hī'drōkär`bən), any organic compound composed solely of the elements hydrogen and carbon. The hydrocarbons differ both in the total number of carbon and hydrogen atoms in their molecules and in the proportion of hydrogen exploration and development rights to the Nazvrevi and Block XIII areas of eastern Georgia. CanArgo holds these rights through its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , "CanArgo (Nazvrevi) Ltd.", formed specifically for this purpose. The Nazvrevi and Block XIII areas cover an area of 2,100 Km2, to the east and south of the capital city Tbilisi, in the most prolific oil and gas area of Georgia. The Nazvrevi portion of the acreage surrounds the Ninotsminda oilfield, currently being produced and developed by CanArgo, and is adjacent to the prolific Samgori field, which has produced to date over 170 million barrels of light sweet oil. The area includes several identified prospects on trend with existing production and discoveries. The Block XIII area lies to the south and west of CanArgo's West Rustavi field, and includes prospective areas on the southern margin of the Kura basin. Both the Nazvrevi and Block XIII areas are included within the same PSC. These areas lie close to existing CanArgo and Georgian Oil infrastructure, within the main Trans-Caucasus transportation corridor, and close to the route of the oil pipeline currently being constructed by the Azerbaijan International Azerbaijan International is a quarterly magazine that features articles about Azerbaijan written in English. Azerbaijan International is an independent magazine committed to the discussion of issues related to Azerbaijanis around the world. Oil Consortium to transport crude oil from the Caspian Sea Caspian Sea (kăs`pēən), Lat. Mare Caspium or Mare Hyrcanium, salt lake, c.144,000 sq mi (373,000 sq km), between Europe and Asia; the largest lake in the world. to the terminal at Supsa on the Georgian Black Sea coast. Recent seismic data acquired on the area is currently being interpreted, and further data will be acquired this summer prior to exploration drilling. The primary target is the Middle Eocene sequence, which produces oil and gas in Ninotsminda and West Rustavi, and which is the main reservoir in the Samgori oilfield. Additional potential exists in the Upper and Lower Eocene sequences (which are oil and gas bearing in adjacent structures), and in the Cretaceous. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the terms of the PSC, 50 percent of the oil sales are used for cost recovery. The remaining 50 percent is shared 50/50 between CanArgo and Georgian Oil until payout. It is then split 70/30 between Georgian Oil and CanArgo respectively. The contract is similar to that covering CanArgo's Ninotsminda field which has operated successfully since February 1996, with oil being produced and sold (in US dollars) at the processing facility to international buyers for export. Dr. David Robson, Chairman of CanArgo said; "The signature of the Nazvrevi/Block XIII PSC marks an extremely important step forward for CanArgo in Georgia. We now have significant high-grade exploration acreage adjacent to our development and production assets in Georgia, giving a balanced portfolio with increased upside Upside The potential dollar amount by which the market or a stock could rise. Notes: This is basically an educated guess on how high a stock could go in the near future. See also: Bull, Downside . This new contract, together with our recently agreed business combination with Fountain Oil Inc. gives the company further potential and resources to exploit our well respected position in the area, and to further grow and develop the company." There are presently 10,438,391 common shares of CanArgo Energy Inc. outstanding. CONTACT: CanArgo Energy Inc. Michael R. Binnion, 403/777-1185 mbinnion@canargo.com or John G. F. McLeod, 403/777-1186 or David Robson, +441-481-729-980 |
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