CanArgo Increases Interest in Ninotsminda Project.

CALGARY, Alberta / OSLO, Norway--(BUSINESS WIRE)--Nov. 30, 1999--

CanArgo Energy Corporation (OTCBB:GUSH)(OSE:CNR) is pleased to announce that it has increased its interest in Ninotsminda Oil Company ("NOC") from 68.5% to 79%.

Through this interest in NOC, CanArgo holds the exploration and production rights for the Ninotsminda field and the West Rustavi and Manavi prospects in the Republic of Georgia.

CanArgo increased its interest by completing a $2 million private placement in NOC late in November. This additional capital will allow NOC to put its natural gas production on stream and implement its proposed concurrent production program for the Ninotsminda field.

Dr. David Robson, Chairman and CEO, commented, "Following the successful signature of the gas supply agreement with AES Telasi last week, I am pleased that we increased our effective interest in the Ninotsminda project. I feel confident that this will add additional value for our shareholders."

CanArgo also announced today that it has sold a 65% stake in its Dagestani project for a $250,000 promissory note. This reflects CanArgo's focus on its Georgian operations and the current situation in Dagestan. CanArgo retains a 9.5% interest at no net cost once the promissory note is repaid.

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 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.