Exhibit 99(3)

                     [CANARGO ENERGY CORPORATION LETTERHEAD]

                FOR IMMEDIATE RELEASE IN NORTH AMERICA AND EUROPE

         June 28, 2000 - CanArgo Closes US$15 million Private Placement

Calgary,  Alberta,  Oslo, Norway-- CanArgo Energy Corporation (OTCBB: GUSH, OSE:
CNR) is pleased to announce that it has closed a private placement of 15,660,916
shares  at  NOK  9.00  per share (approximately US$1.04 per share). Net proceeds
from  the  placement  were  some  NOK 132 million (approximately US$15 million).
After  completion  of the private placement, CanArgo will have 60,902,892 common
shares  issued  and  issuable.

Den  norske  Bank  ASA,  DnB  Markets,  Orkla Enskilda Securities ASA and Sundal
Collier  &  Co ASA acted as placement agents for this transaction. The shares to
be  issued  in  connection with this placement were issued under Regulation S of
the  Securities  Act of the United States and have not been registered under the
Securities Act of 1933, as amended, and may not be offered or sold in the United
States or to U.S. persons (as defined in such Regulation) absent registration or
an  applicable  exemption  from  registration.  The  Offering  will prior to the
listing  of  the  Shares  require  a  prospectus  under  the Oslo Stock Exchange
Regulations,  Chapter  18  (offering of more than 10% of the share capital). The
Offering  will  not require a prospectus under the Securities Trade Act of 1997,
Chapter  5 as the Offer is in compliance with the exemptions from the obligation
to prepare a prospectus in connection with offers made to professional investors
(the  securities  issued in minimum lots of EURO 40,000 in terms of subscription
price).

CanArgo  intends  to use the net proceeds from the private placement principally
for  activities  on its existing projects in Georgia and the Caspian Sea as well
as  to pursue the rights to new oil & gas licenses and opportunities in Georgia.
The  Company  anticipates  that the proceeds from this placing will enable it to
progress  these  opportunities, and enable development of the Company's business
in  its  focus  area.

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
78.8%  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.

For  further  information,  contact:

North  America               Norway
Tel:  +403.777.1185          Eric  Cameron,  Gambit
Toll  Free  1-888-777-7974   Tel  :  +47.22.04.82.00
E-mail  :  info@canargo.com  Fax  :  +47.22.04.82.01
web:  www.canargo.com