CanArgo Comments on Recent Stock Activity.

Business Editors

CALGARY, Alberta and OSLO, Norway--(BUSINESS WIRE)--May 9, 2000

CanArgo Energy Corporation (OTCBB:GUSH)(OSE:CNR) is unable to provide a definite reason for the recent increase in the average daily trading volume and price, in particular on the Oslo Stock Exchange late last week.

The Company believes there are four possible issues that could be contributing to these recent improvements.

On March 14, 2000, CanArgo's principal subsidiary, Ninotsminda Oil Company signed a letter of intent with subsidiaries of AES Corporation for gas exploration on the Ninotsminda license. The letter of intent contemplates AES earning an interest in identified prospects at the Cretaceous stratigraphic level by funding a portion of the cost of three exploration wells. Negotiations with AES on a final agreement are progressing satisfactorily. Although the company anticipates successfully concluding this agreement, no assurances can be given that this will be completed to CanArgo's satisfaction or at all.

CanArgo will be announcing its first quarter results later this week. These results will show an improvement over past performance. However, CanArgo does not expect that this improvement will exceed the markets' expectations.

CanArgo has had discussions with more than one company regarding a potential corporate transaction. These discussions are preliminary and CanArgo has no expectation with regard to the final nature of this transaction or of the likelihood it will be completed.

As disclosed in the Company's annual report, CanArgo has reached a letter of intent to purchase the balance of Ninotsminda Oil Company from JKX Nederland BV. However, this agreement has not received final board and regulatory approvals and accordingly no assurance can be given that this agreement will be completed.

Michael Binnion, President & Chief Financial Officer, commented, "There are a number of things we are working on to improve value for our shareholders. Any one of these could explain the recent activity in our stock price, but none of them are certain at this time."

CanArgo Energy Corporation is a dynamic 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 78.8% owned 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.