Tethys Petroleum to Seek AIM Admission

Tethys Petroleum Limited, a wholly owned subsidiary of the US public company CanArgo Energy Corporation intends to raise funds and seek Admission to the AIM of the London Stock Exchange at the end of October 2006. Tethys has engaged ODL Securities Limited as broker for the transaction, and Nabarro Wells & Co. Ltd are acting as the nominated adviser.

Tethys is an oil and gas exploration and production company with operations in the Republic of Kazakhstan. Its development and exploration assets are located in a region known as the North Ustyurt basin, which is adjacent to the prolific pre-Caspian basin and the Aral Sea.

Tethys' assets are principally its interests in the Kyzyloi gas field, and in the surrounding Akkulka and Greater Akkulka exploration areas. Tethys has an active exploration program underway, and is planning to commence gas production from the Kyzyloi field in the spring of 2007. The funds to be raised will be used primarily to advance the development of the Kyzyloi Gas Field and further exploration and development plans for the Akkulka and Greater Akkulka contract areas.