CanArgo Announces Sale of Holding in CSOP for $4 million USD.Business Editors OSLO, Norway--(BUSINESS WIRE)--Oct. 14, 2002 CanArgo Energy Corporation ("CanArgo") (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :GUSH) (OSE OSE - Open Systems Environment :CNR See riser card. CNR - Communication and Network Riser ) is pleased to announce that it has agreed binding terms for the sale of its interest in its Georgian gasoline gasoline or petrol, light, volatile mixture of hydrocarbons for use in the internal-combustion engine and as an organic solvent, obtained primarily by fractional distillation and "cracking" of petroleum, but also obtained from natural gas, by station business, CanArgo Standard Oil Products ("CSOP CSOP Company Share Option Plan CSOP Combat Security Outpost CSOP Crew Systems Operating Procedures (NASA) CSOP Commission to Study the Organization of Peace CSOP Certified Securities Operation Professional "), for a cash consideration of US$ 4 million. A US investment company, Westrade Alliance, will purchase CanArgo's entire holding in CSOP, with legal ownership being transferred once all funds are received. Under the terms of the agreement a non-refundable deposit of $1 million is to be paid in two instalments by 14th January, 2003 with the balance due by 14th August, 2003. CanArgo's investment to date in CSOP has been US$ 1.94 million, made since April 2000, with the majority of funds being invested during 2001. Dr. David Robson, Chief Executive Officer of CanArgo said, "The sale of CSOP provides a significant investment return on the disposal of this non-core asset, which represents only a small part of our asset base. The funds released from this transaction will allow the Company to further progress the development of its core assets in the Republic of Georgia and Ukraine. "In the past three months we have cut costs at head office and in Georgia. We have also signed an agreement to progress our Ukraine projects with outside investment, and now realised significant value in this disposal. We have no debt and our production level is currently steady. We will focus on using the funds to increase production and cash flow and will continue to seek farm-in partners for our two exploration wells that we have suspended sus·pend v. sus·pend·ed, sus·pend·ing, sus·pends v.tr. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. . These remain very good prospects." At the same time CanArgo updated progress on the production test on the well N100 oil discovery. The progressive cavity pump A progressive cavity pump is also known as a progressing cavity pump, eccentric screw pump or even just cavity pump and also, as is common in engineering generally, these pumps can often be referred to by using a manufacturers name, as if it were the generic which is required for this test was delivered to Georgia, but was discovered to be defective defective adj. not being capable of fulfilling its function, ranging from a deed of land to a piece of equipment. (See: defect, defective title) . The manufacturers have accepted responsibility for the defect, and are replacing the pump at their expense. Unfortunately this will result in a delay in carrying out the test. CanArgo is an independent oil and gas exploration and production company with its oil and gas operations currently located in the Republic of Georgia, Ukraine and 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. . Further information on the Company is available at www.canargo.com and at http://www.sec.gov. 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 Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. 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. |
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