CanArgo Announces Signature of Memorandum of Understanding.CALGARY, Alberta--(BUSINESS WIRE)--Sept. 2, 1998--CanArgo Energy Corporation (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 ) (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :GUSH) (OSLO:CNR See riser card. CNR - Communication and Network Riser ) announced today the signature of a Memorandum of Understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. (MOU (Minutes Of Usage) A metric used to compute billing and/or statistics for telephone calls or other network use. ) with XCL Ltd., the Louisiana-based oil and gas exploration company. The MOU concerns participation by XCL Ltd. and its Chinese partners in CanArgo's oil and gas interests in the Republic of Georgia and participation by CanArgo in XCL's oil and gas interests in Bohai Bay, Peoples Republic of China. Specifically, the MOU covers seismic acquisition on CanArgo's Nazvrevi/Block XIII license area in Georgia. This seismic survey is scheduled for late 1998, and is planned to be carried out by Dagang Geophysical Company, part of the Dagang Oilfield Group, a subsidiary of the Chinese National Petroleum Corporation (CNPC CNPC China National Petroleum Corporation CNPC Centro Nacional de la Productividad y la Calidad (Chile) CNPC Commander, Navy Personnel Command CNPC China National Philatelic Corporation (Chinese stamp authority) ). CanArgo and XCL jointly sponsored a joint venture between Dagang Geophysical and Georgian Geophysical for seismic work in the Republic of Georgia. The MOU also provides for negotiations aimed at CanArgo participation in XCL's operation in China, including the Zhang Dang dang interj. Used to express dissatisfaction or annoyance. adv. & adj. Damn. tr.v. danged, dang·ing, dangs To damn. n. block in Bohai Bay. The Zang Dang block is located in shallow water and is the northern extension of the Zhao Dang Block on which XCL has made several significant discoveries, with wells testing at rates in excess of 15,000 bopd. The companies have agreed to progress the principles contained in the MOU into participating agreements. Dr. David Robson, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of CanArgo reported, "We are delighted to have reached an agreement with XCL on this Memorandum of Understanding. I believe that XCL/Dagang is an exceptional partner for our Georgian activities, and look forward working with XCL/Dagang in China, an exciting, high potential new area for CanArgo. We are impressed with Dagang's expertise, experience and equipment in the geophysical and directional drilling areas, and plan to use this expertise fully in our Georgian operations. The confidence expressed by XCL in our Georgian operation is a testament to the independence Georgia now enjoys and our locally focused management approach." Contrary to the recent turmoil in Russia the Georgian Lari has maintained a strong position, backed by the IMF IMF See: International Monetary Fund IMF See International Monetary Fund (IMF). the Georgian Lari has strengthened to its current value at $1.349 to US$1.00. This strength is an excellent indication of the strength and independence of the economy of the Republic of Georgia. 6 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 need for additional approvals and the effect of actions of third parties, including co-ventures, contractors and governmental officials, on the timing and occurrence of anticipated events. For more complete discussion of such risks, uncertainties and other factors, see the Company's (formerly Fountain Oil Incorporated) Annual Report on Form 10-K/A for the year ended December 31, 1997 and the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission.
CONTACT: CanArgo Energy Corporation
Kevin Nephin, 800/825-2977
info@canargo.com
or
CanArgo Energy Corporation
Rune Falstad, +47 66 786934
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