CanArgo Growth Continues.CALGARY, ALBERTA--(BUSINESS WIRE)--Dec. 18, 1998-- CanArgo(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) CanArgo Energy Corporation (NASDAQ: GUSH; OSE OSE - Open Systems Environment : CNR See riser card. CNR - Communication and Network Riser ) is pleased to announce that it has increased its interest in Ninotsminda Oil Company (NOC (Network Operations Center) A central or regional location for monitoring a large network. Also called a "network management center" (NMC), "service management center" (SMC) or "network control center" (NCC), a NOC may be used to manage a large enterprise network, ) from 55.9 percent to 68.5 percent. Through its ownership in NOC, CanArgo holds the rights for the Ninotsminda oil field, W. Rustavi and Manavi prospects in the Republic of Georgia. 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 stated the significance of CanArgo's increased position in NOC, "The increase in our investment reflects the confidence we have in the project and its development. Ultimately this increases our commitment to the region and solidifies our dominant oil and gas presence in Georgia". CanArgo also announces, due to the brown out situation in the Georgian power grid, it has temporarily suspended drilling of N-97, Georgia's first horizontal well. Step out well N-98 production results have also been delayed primarily due to the power problems. Management projects that test results on N-98 should be available in February 1999. To solve operational problems caused by the brown out conditions in Georgia, CanArgo plans to install a gas turbine powered 3 MW generator to provide electricity for its field operations with the excess power sold to the local utility, Sagarejo Electrical Service Electrical service, in building wiring, refers to the wiring that connects the electric utility's cables in the street to the building. Specifically, electrical service is the wiring from the street, through the meter and up to the panelboard, but no farther. . Approximately 2 million cubic feet of natural gas is being flared each day from the Ninotsminda field, the use of which provides a cheap, reliable source of gas for this project. This project will alleviate environmental pollution by reducing the volume of flared gas and more importantly reduce the shortfall of electrical power in Georgia. The generator is completing final testing and commercial production is expected to begin in early 1999. CanArgo Energy Corporation is an independent oil & gas exploration and production company operating in Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. and Asia. The Company's activities include downstream operations such as independent power production, oil refining and marketing. CanArgo's corporate strategy is to develop locally managed business units with a focus on early cash flow and business upside. The Company has made forward-looking statements in this release. These statements are intended to help shareholders 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 within the meaning 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 discussed herein will be attained due to many factors both in and outside of the control of the Company and its management. Certain important factors that may cause actual results to differ materially are contained in the Company's publicly available filings with the Securities and Exchange Commission. |
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