Exhibit 99(5)

                     [CANARGO ENERGY CORPORATION LETTERHEAD]

                FOR IMMEDIATE RELEASE IN NORTH AMERICA AND EUROPE

      July 5, 2000 - CanArgo concludes acquisition of principal subsidiary

Calgary,  Alberta,  Oslo, Norway-- CanArgo Energy Corporation (OTCBB: GUSH, OSE:
CNR)  is  pleased  to  announce  that  it  has completed the purchase of a 21.2%
interest  in Ninotsminda Oil Company ("NOC") from JKX Oil & Gas plc (LSE : JKX).

NOC  is  now  a  wholly  owned subsidiary of CanArgo. The consideration paid was
US$4.5  million, through the issuance of 4,054,054 common shares of CanArgo at a
deemed  price  of  US$1.11 per share. The share price, calculated at the time of
negotiating  the deal, was based on the 10 day weighted average trading price of
CanArgo's  common  shares on the Oslo Stock Exchange and the OTC Bulletin Board.

The  shares  to  be issued in connection with this transaction 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.

NOC  holds  a  licence  on  producing  assets  and  exploration prospects in the
Republic  of  Georgia,  close  to  the  capital,  Tbilisi.  In  addition  to its
development  activities  on  the  field,  CanArgo  anticipates  initiating  a
significant  gas  exploration  program  on  the Ninotsminda license this summer.

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
wholly  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