CanArgo Energy Corporation: Appointment of New Chief Financial Officer.

GUERNSEY, Channel Islands -- CanArgo Energy Corporation (OSE:CNR) (AMEX:CNR) ("CanArgo") announced today that it has appointed Richard Battey B.A., F.C.A. as Chief Financial Officer.

Mr. Battey (53), a qualified Chartered Accountant, has been a Director of Schroders (C.I.) Limited (Channel Islands branch of Schroders Private Bank), Guernsey, since 1994. His responsibilities included Finance, Operations, Compliance and Administration. Previously he worked for Schroder Investment Management Limited, London, and in other parts of the Schroder group in various positions including accounting and internal audit.

The former Chief Financial Officer, Mr. Vincent McDonnell, already an Executive Director, has moved to the position of Chief Operating Officer in addition to his duties as Chief Commercial Officer. In this role Mr McDonnell will be responsible for the day-to-day management of the company's operations and technical activities. Mr McDonnell holds a B.Sc. degree in Geology, an M.Sc. in Geophysics and an MBA, and has worked for major operators such as Mobil Oil and Britoil plc

in the past.

Dr David Robson, Chairman, President and Chief Executive Officer of CanArgo commented: "We are delighted that Richard is joining our team. He brings a wealth of experience in the finance sector and we look forward to working with him in the development of our business. I am also extremely pleased that Vincent McDonnell is taking up the position of Chief Operating Officer. Vincent's technical background and extensive knowledge of our Georgian operations will enable us to focus even more on both our development and exploration / appraisal programs."

CanArgo is an independent oil and gas exploration and production company with its oil and gas operations currently located in the Republic of Georgia and the Caspian area.

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 will be attained.

CanArgo Energy Corporation (AMEX:CNR) (OSLO STOCK EXCHANGE:CNR)