21.10.08 - 02:12 Uhr
 

- 1 -FOR IMMEDIATE RELEASE IN EUROPE & NORTH AMERICACANARGO ANNOUNCES A FURTHER EXTENSION OF THE EXPIRATIONTIMES OF ITS RIGHTS OFFERINGOctober 20, 2008 - Guernsey, Channel Islands - CanArgo Energy Corporation(OSE:CNR; AMEX:CNR) ("CanArgo" or the "Company") announced today that it hasdetermined to extend the scheduled expiration dates and times of the Rights Offering asfollows:1 The Rights Offering expiration dates have been extended from 4:00 p.m., U.S.Eastern time on October 31, 2008, the scheduled U.S. Expiration Time, until4:00 p.m., U.S. Eastern time on November 21, 2008, and from 5:30 p.m.,CET, on October 21, 2008, the scheduled Norwegian Expiration Time, until5:30 p.m., CET, on November 11, 2008.2 The expiration of trading in the Rights has been extended on the AMEX from4:00 p.m., U.S. Eastern time on October 30, 2008 until 4:00 p.m., U.S. Easterntime on November 20, 2008 and on the OSE from 5:30 p.m., CET, on October21, 2008, until 5:30 p.m., CET, on November 11, 2008;3 The expiration of withdrawal rights in the U.S. has been extended from 5:30p.m., U.S. Eastern time on October 30, 2008 until 5:30 p.m., U.S. Eastern timeon November 20, 2008;4 Beneficial owners resident in the U.S. exercising or selling their Rights shouldcomplete and deliver to their broker, custodian bank or other nominee theirBeneficial Owner Election Form or other similar form furnished to them bytheir broker, custodian bank or other nominee well in advance of 5:00 p.m.,U.S. Eastern time, on November 20, 2008, the last business day prior to thescheduled November 21, 2008 amended U.S. Expiration Time of this RightsOffering, such that such form will be received by the Computershare (the"U.S. Subscription Agent") by 5:00 p.m., U.S. Eastern time, on November 20,2008. Since the Rights Offering in the U.S. was extended to November 21,2008, if a record holder of a Subscription Rights Certificate wishes to sell hisRights through U.S. Subscription Agent, he must deliver his properlycompleted and executed Subscription Rights Certificate, with appropriateinstructions, to the U.S. Subscription Agent, who will only facilitatesubdivisions, transfers or direct sales (other than on the AMEX) of Rightsuntil 5:00 p.m. U.S. Eastern time, on November 18, 2008, three business days- 2 -prior to the scheduled November 21, 2008 amended U.S. expiration date ofthis Rights Offering; and5 Beneficial owners who hold their Rights or Shares in the DTC or VPSSystems should contact the U.S. Subscription Agent at (800) 962-4284 or theNorwegian Subscription Agent at +47 22 01 63 00, respectively, if they havequestions or for further details.Each of the underwriters to the Rights Offering has agreed to such extension. Theunderwriters have previously advised the Company that, in light of current marketconditions, they are unable or unwilling, or may be unable or unwilling, to fulfill theirunderwriting obligations.The extension of the expiration times of the Rights Offering will enable the Company (1)to continue discussions with the Standby Underwriters and (2) to advance discussionswhich it has commenced with other parties who have expressed an interest in providingalternative underwriting of the Rights Offering. In the meantime, and particularly inview of the scheduled expiration time concerning the VPS Subscription Rights, theCompany has determined a further extension of the Subscription Period in the RightsOffering. According to the Norwegian Prospectus section 5.4 an announcementconcerning an extension of the subscription period shall contain an update of the relevantdates in respect of the VPS Subscription Rights. See below for such update.The VPS Subscription Rights may after the extension be transferred or assigned until 11November 2008 at 17:30 CET.The VPS Subscription Rights will after the extension be traded on Oslo Børs under theticker symbol "CNR T" until 11 November 2008 at 17:30 CET. Settlement for the sale ofVPS Subscription Rights will still follow normal T+3 cash settlement procedures.The VPS Subscription Rights may after the extension be exercised until 11 November2008 at 17:30 CET.Subscriptions on the basis of VPS Subscription Rights must be made on the SubscriptionForm attached to the Prospectus as appendix 7. Properly completed Subscription Formsmust be received by the Manager no later than 11 November 2008 at 17:30 CET.After the expiration time on 11 November 2008, unexercised VPS Subscription Rightswill expire and have no value.A description of the results of the Rights Offering will be made public by stock exchangenotice on on or about 1 December 2008.Payment for subscribed New Shares shall be made in USD to the following bank accountheld by the Manager:Bank: DnB NOR Bank ASA- 3 -SWIFT: DNBANOKKA/C Glitnir Securities ASUSD A/C No: 7012.04.41939Payment of the exact subscription amount must be received on the above bankaccount by the close of business on 14 November 2008.Delivery of the allocated New Shares is, following the second extension, expected to takeplace on or about 3 December 2008. The New Shares issued on the basis of exercisedVPS Subscription Rights will be credited to the respective VPS accounts of the relevantsubscribers.The New Shares issued on the basis of VPS Subscription Rights will be listed on OsloBørs under the ticker symbol CNR. The first day of trading of New Shares on Oslo Børsis, following the second extension, expected to be 3 December 2008.The foregoing does not constitute an offer to sell or a solicitation of an offer topurchase any securities by the Company which offer can only be made pursuant tothe registration statement filed pursuant to the Securities Act and in compliancewith all other applicable securities laws and stock exchange rules and regulations.CanArgo is an independent oil and gas exploration and production company with its oiland gas operations currently located in Georgia.The matters discussed in this press release include forward-looking statements, which aresubject to various risks, uncertainties and other factors that could cause actual results todiffer materially from the results anticipated in such forward-looking statements. Suchrisks, uncertainties and other factors include the uncertainties inherent in oil and gasdevelopment and production activities, the effect of actions by third parties includinggovernment officials, fluctuations in world oil prices and other risks detailed in theCompany"s reports on Forms 10-K and 10-Q filed with the Securities and ExchangeCommission. The forward-looking statements are intended to help shareholders andothers assess the Company"s business prospects and should be considered together withall information available. They are made in reliance upon the safe harbour provisions ofSection 27A of the Securities Act of 1933, as amended, and Section 21E of the SecuritiesExchange Act of 1934, as amended. The Company cannot give assurance that the resultswill be attained.For more information please contact:US and NORWAYEric CameronGambit H&K AS- 4 -Tel: +47 96 62 55 94Email:




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