CanArgo Well Tests At 900 BOE Per Day.

CALGARY, Alberta, and OSLO, Norway--(BUSINESS WIRE)--Nov. 8, 1999--

CanArgo Energy Corporation (OTCBB:GUSH) (OSE:CNR) is pleased to announce the test results and analysis of its subsidiary's N9 high gas-oil ratio well on the Ninotsminda field located in the Republic of Georgia.

The N9 well has approximately 125 meters of net gas pay in the Middle Eocene formation. The well has been perforated from 2500 meters to 2530 meters below the kelly bushing.

During the Single Point Flow and Buildup test last month, the well produced approximately 24 million standard cubic feet (mmscf) and 1920 barrels of condensate/oil over the 120 hour flow test period. The rate varied from 3 mmscfd with a 9.5 mm choke to 7 mmscfd with a 12.7 mm choke. Condensate production was 38 barrels per mmcf and total condensate/oil production stabilized at a rate of 600 barrels per day. On average, the well yielded a combined oil and gas rate of 900 boe per day.

Interpretation and analysis of these results by consulting engineers indicated that no faults or reservoir boundaries were encountered during the test. Subsequent to the stabilized oil flow, the stabilized sandface Absolute Open Flow was calculated to be approximately 5.4 mmscfd (152.6 cubic meters per day) during the test period.

The testing of well N9 is the second well of a four well testing program currently underway on the Ninotsminda field to establish the feasibility of commercial gas production in conjunction with the optimization of oil production. Further analysis of the test results are being carried out to establish long term deliverability. CanArgo is currently in discussions regarding the sale of this gas production. These discussions include the subsidiary of a large American independent power producer. The final determination of the production rate for well N9 is largely dependant on the outcome of these discussions.

Dr. David Robson, Chairman and Chief Executive Officer, commented "I am very pleased with the results of this test as it shows that we can enhance our oil production concurrently with the commercial production of gas."

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 68.5% 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.