EXHIBIT 7(1)

                     [CANARGO ENERGY CORPORATION LETTERHEAD]

                FOR IMMEDIATE RELEASE IN NORTH AMERICA AND EUROPE

March,  8  2001  -  Oslo,  Norway,  London, England, Toronto, Canada --  CanArgo
Energy Corporation ("CanArgo") (OSE: CNR, OTCBB: GUSH) announces that it intends
to  make  an  offer  ("the  Offer") to purchase all outstanding common shares of
Lateral  Vector  Resources  Inc.  ("LVR") (TSE: LVR.TO-NEWS).  The Offer will be
made  through a wholly owned subsidiary of CanArgo organised for the purposes of
making  the  offer.

The  basis  of  the  Offer  to  LVR shareholders will be C$0.10 in cash for each
outstanding  LVR  share.

The  C$0.10  per  share  cash  offer  represents  a 180% premium to the weighted
average trading price of the LVR shares on the Toronto Stock Exchange for the 30
trading  day  period  ending  on  March 6th , 2001.  Based on publicly available
information,  the  transaction  value  represented by the Offer is approximately
C$3.25million.

The  Offer  will  be financed from CanArgo's  cash resources.  The Offer will be
conditional  upon  the  deposit  of  at  least 90% of the outstanding LVR shares
(calculated  on  a  fully diluted basis).  The Offer will also be subject to the
receipt of all required regulatory approvals (including any required in Ukraine)
and  other  conditions  customary  in  this  type  of transaction, including the
absence  of  any  material  change  in  the  business  or  operations  of  LVR.

The  Offer  will  be open for acceptance for approximately 21 days following the
date  of mailing, which is expected to occur shortly. Sundal Collier & Co (Oslo,
Norway),  DnB  Markets  (Oslo,  Norway)  and  Yorkton  Securities  Inc (Calgary,
Alberta),  are  acting  as  financial advisers to CanArgo.  In addition, Yorkton
Securities  Inc are also acting as soliciting dealer manager for the Offer.  The
Offer  will  also  be conditional upon the lapse or termination without material
cost  to  LVR of the Letter of Agreement between LVR and Carpatsky Petroleum Inc
announced on  March, 2nd  2001 and relating to the proposed acquisition of  LVR.

LVR  is  an  oil and gas company with headquarters in Regina, Saskatchewan, with
activities  principally  in  east  Ukraine.  According  to  publicly  available
information, LVR negotiated and concluded a Joint Investment Production Activity
(JIPA)  agreement  in  1998  to  develop the Bugruvativske  Field  together with
Ukrnafta  (a  Ukrainian oil and gas company).  Please refer to www.sedar.com for
publicly  available  information  regarding  LVR.

Through  the  acquisition,  CanArgo  intend to further broaden its operations in
Ukraine,  where  it  has  resumed  operations  together with Ukrnafta to further
develop  the  Stynawske  oil  field.

CanArgo  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  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 CanArgo'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
CanArgo'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. CanArgo cannot give assurance that
the  results  anticipated  herein  will  be  attained.
For  further  information,  contact:


Murray  Chancellor,  Chief  Operating  Officer,  CanArgo
Mobile  :  +995  99  159979
Tel  :  +44.207.808.4700
Fax  :  +44.207.808.4747

Anthony  J.  Potter,  Chief  Financial  Officer,  CanArgo
Mobile  :  +44  7771  761364
Tel  :  +44.207.808.4700
Fax  :  +44.207.808.4747

Norway
Eric  Cameron,  Gambit
Tel  :  +47.22.04.82.00
Fax  :  +47.22.04.82.01