CanArgo Announces Sale of Albanian Assets.

CALGARY, Alberta AND OSLO, Norway--(BUSINESS WIRE)-- Dec. 7, 1999--

CanArgo Energy Corporation (OTCBB:GUSH) (OSE:CNR) announced today that it has sold its Albanian assets to Northern Petroleum plc, a British AIM listed company.

CanArgo will receive 1.5 million options to purchase Northern Petroleum common shares. Following Albanian regulatory approval of the arrangement, CanArgo will receive US$100,000 plus a 15% net profit interest in the Gorisht-Kocul project.

Michael Binnion, President, commented, "This deal is a great step forward for the Gorisht-Kocul project. Focusing on Georgia has produced successful results for CanArgo. I feel optimistic that Northern Petroleum can achieve similar results in Albania."

CanArgo Energy Corporation is an independent oil and gas exploration and production company operating in Eastern Europe. CanArgo's principal oil and gas operations are located in the Republic of Georgia. The Company's activities at its primary field in Georgia, the Ninotsminda field, are conducted through its subsidiary, Ninotsminda Oil Company Limited. In addition, the Company has interests in several other oil and gas prospects and in refining, marketing, independent power production and oilfield technology activities.

The matters discussed in this press release include forward looking statements, which are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated in such forward looking statements. Such risks, uncertainties and other factors include the uncertainties inherent in oil and gas development and production activities, the effect of actions by third parties including government officials, fluctuations in world oil prices and other risks detailed in the Company's reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission. The forward looking statements are intended to help shareholders and others assess the Company's business prospects and should be considered together with all information available. They are made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company cannot give assurance that the results anticipated herein will be attained.