SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) July 20, 2000
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CANARGO ENERGY CORPORATION
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(Exact Name of Registrant as Specified in its Charter)
Delaware 0-9147 91-0881481
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(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
1580, 727 - 7th Avenue SW, Calgary, Alberta T2P 0Z5
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 403-777-1185
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(Former Name or Former Address, if Changed Since Last Report)
The matters discussed in this Report 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 exploration, 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
Registrant'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 Registrant'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 Registrant cannot give assurance that the results anticipated herein will be
attained.
ITEM 5. OTHER EVENTS
On July 20, 2000, CanArgo Energy Corporation (the "Registrant")
concluded an agreement (the "Agreement") with JSC National Oil Company
("Georgian Oil") and the State Agency for the Regulation of Oil and Gas
Resources of Georgia on its participation in the Norio Block XIC (the "Block")
located in eastern Georgia.
The Agreement mandates the Registrant will be granted a one year right
to negotiate exclusively for a Production Sharing Contract ("PSC") for the
Block, with the terms of this PSC being similar to those applying to the
Registrant's existing Nazvrevi / Block XIII contract.
The Registrant proposes to conduct a seismic acquisition program on
the Block later this summer to firm up its planned drilling program for 2001.
Under the terms of the Agreement, the cost of the seismic program will be offset
against commitments under the PSC and will be refunded in the event that a PSC
is not concluded within the one-year exclusivity period. The Registrant plans
to take a partner in this project.
Covering an area of 1,520 km2 close to the capital, Tbilisi, the Block
lies to the immediate north of the large Samgori oilfield and adjacent to the
Registrant's producing Ninotsminda field. In addition to two existing shallow
fields, available data has identified several structures in the deeper Middle
Eocene and Cretaceous horizons. It is expected that the seismic program to be
conducted will confirm the prospectivity of the block and identify possible
drilling locations for 2001-2002.
On July 24, 2000, the Registrant's wholly owned subsidiary,
Ninotsminda Oil Company ("NOC"), executed a binding Participation Agreement with
AES Gardabani, a subsidiary of AES Corporation of the United States. The
agreement relates to the exploration and potential future development of gas
prospects on the Registrant's Ninotsminda license in Georgia.
Under the agreement, AES Gardabani will earn a 50% interest in
identified prospects at the Cretaceous stratigraphic level by funding a portion
of the cost of a three-well exploration program.
The program will be implemented by the Registrant's existing
operations unit in Georgia, directed jointly by the Registrant and AES. The
first well of this three-well program will be N97 (C1), which is expected to
commence next week.
In the event of a successful exploration program, the agreement
mandates a long-term gas sales contract to units 9 & 10 of the Gardabani thermal
power plant, recently acquired by AES. NOC already has an existing contract to
supply gas to the Gardabani plant from the shallower Middle Eocene reservoir in
its producing Ninotsminda field.
On July 26, 2000, the Registrant announced it has received approval
for a primary listing of its common shares on the Oslo Stock Exchange ("OSE").
Its common shares will trade on the OSE under its existing symbol
"CNR." These shares will continue to be quoted on the OTC Bulletin Board under
the symbol "GUSH."
(c) Exhibits
99(1) Press release dated July 20, 2000 relating to an agreement between the
Registrant, JSC National Oil Company and the State Agency for the Regulation of
Oil and Gas Resources of Georgia on the Norio Block
99(2) Press release dated July 24, 2000 relating to a Participation
Agreement between the Registrant's wholly owned subsidiary, Ninotsminda Oil
Company and AES Gardabani
99(3) Press release dated July 26, 2000 relating to the Registrant securing
a primary listing on the Oslo Stock Exchange
SIGNATURES
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Pursuant to the requirement of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CANARGO ENERGY CORPORATION
Date: July 27, 2000 By: /s/Maria Rees
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Maria Rees
Corporate Secretary
FILED WITH
EXHIBIT THIS
NUMBER EXHIBIT REPORT
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99(1) Press release dated July 20, 2000 relating to an agreement
between the Registrant, JSC National Oil Company and the
State Agency for the Regulation of Oil and Gas Resources
of Georgia on the Norio Block X
99(2) Press release dated July 24, 2000 relating to a
Participation Agreement between the Registrant's wholly
owned subsidiary, Ninotsminda Oil Company and AES Gardabani X
99(3) Press release dated July 26, 2000 relating to the Registrant
securing a primary listing on the Oslo Stock Exchange X