CanArgo Receives First Payment from AES Telasi.

Business Editors

CALGARY, Alberta and OSLO, Norway--(BUSINESS WIRE)--Feb. 16, 2000

CanArgo Energy Corporation (OTCBB:GUSH) (OSE:CNR) is pleased to announce that its subsidiary, Ninotsminda Oil Company, has received the first payment for gas deliveries made to AES Telasi during the month of December.

NOC commenced gas deliveries on December 9, 1999 from three recompleted wells on the Ninotsminda field. During the month, these wells cumulatively delivered 4.55 million cubic meters (161 million cubic feet) to the Gardabani thermal power plant. Delivery volumes are anticipated to increase as additional wells are brought onstream and pipeline upgrades increase efficiencies.

The current development plan contemplates recompleting a further four wells as concurrent oil and gas producers by the end of the first quarter. This new production approach also impacted oil production which increased over 40% during the month of December 1999.

Michael Binnion, President and Chief Financial Officer of CanArgo, reported, &uot;Collecting our first gas revenue validates our concurrent production plan. It allowed us to achieve our target of being cash flow positive before the millennium. I now feel confident that 2000 will be the year that CanArgo emerges as a solid growth company with tremendous exploration upside.&uot;

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.