CanArgo Cancels Secondary Offering in Tethys

CanArgo Energy Corporation revealed that CanArgo Limited a Guernsey Channel Islands company wholly owned by CanArgo was not proceeding with its planned sale of up to 8,000,000 ordinary shares of Tethys Petroleum Limited held by CanArgo Limited in a Secondary Offering pursuant to an Agency agreement dated June 18, 2007. CanArgo Limited has now concluded an amendment to the Agency Agreement releasing the Agents from all obligations to offer, sell or distribute on behalf of the Company the Secondary Shares.

Following the Tethys Initial Public Offering on June 27, 2007 on the Toronto Stock Exchange, in which US$50 million gross was raised by issuing 18,181,818 new shares, CanArgo currently retains a 17.7% interest in Tethys.

CanArgo is an independent oil and gas exploration and production company with its principal oil and gas operations currently located in Georgia.