CanArgo Energy: Registration Statement Declared Effective.

Business Editors

CALGARY, Alberta & OSLO, Norway--(BUSINESS WIRE)--Sept.22, 2000

CanArgo Energy Corporation (OTCBB:GUSH)(OSE:CNR) announced today that its Registration Statement on Form S-3 was declared effective by the Securities & Exchange Commission.

The Registration Statement relates to the offer and sale of 14,220,000 shares of CanArgo's common stock by certain stockholders, including 1,720,000 shares issuable on the exercise of special stock options and 500,000 shares issuable on the exercise of warrants. The selling stockholders will receive all of the proceeds from the sale of the shares covered by this Registration Statement. CanArgo will not receive any proceeds from the sale of any shares covered by this Registration Statement. CanArgo will receive $3,106,640 if all of the special stock options and warrants are fully exercised.

This press release does not constitute an offer to sell, nor is it seeking an offer to buy, the common stock in any jurisdiction.

A prospectus may be obtained from CanArgo's office at 1580 Guinness House, 727 7th Avenue SW, Calgary, Alberta T2P 0Z5.

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 wholly 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.