1


                                                                   Exhibit 99(1)



                     [CanArgo Energy Corporation letterhead]

                FOR IMMEDIATE RELEASE IN NORTH AMERICA AND EUROPE

                June 10, 1999 - CanArgo announces public offering

Calgary, Alberta, Houston, Texas and Oslo, Norway - CanArgo Energy Corporation
(OTCBB: GUSH; OSE: CNR) announced that its Registration Statement relating to
the public offering of a minimum 11,500,000 shares and a maximum 21,264,643
shares of its common stock has been declared effective by the U.S. Securities
and Exchange Commission. The shares will be sold at a price of US$0.30 per share
or in Norwegian kroner at NOK 2.35 per share. The terms of the public offering
do not provide for any priority to existing stockholders, but stockholders who
reside in the jurisdictions in which the offering is permitted may subscribe for
shares.

The offering will commence at 9:00 a.m. Texas local time and 4:00 p.m. Oslo
local time on the date after the day when prospectuses are first available for
distribution in Norway. This is expected to occur on or about June 17, 1999. The
offering will terminate on the earlier of the time when all the shares are sold,
or 9:00 a.m. Texas local time and 4:00 p.m. Norway local time on June 30, 1999,
unless CanArgo extends this date to not later than August 6, 1999.

This press release does not constitute an offer to sell, nor is it seeking an
offer to buy, the common stock in any jurisdiction.

A prospectus may be obtained from CanArgo's office at 1400 Broadfield Boulevard,
Suite 100, Houston, Texas 77084. Prospectuses may also be obtained from the
following dealers:

          Credifinance Securities Limited of Toronto, Ontario, Canada;
          David Williamson Associates Limited of London, England; and
          Orkla Finans (Fondsmegling) ASA of Oslo, Norway.

CanArgo Energy Corporation is an independent oil and gas exploration and
production company operating in Eastern Europe. The Company's existing and
planned activities include downstream operations such as independent power
production, oil refining and marketing.

For further information, contact:

Kevin Nephin/Peter Jackman , Investor Relations                  1-888-777-7974
Orkla Finans                                                    +47.22.40.08.00
Internet: www.canargo.com
E-mail: info@canargo.com