CanArgo Sells Its Interest in Tethys Petroleum

CanArgo Energy has sold its entire shareholding of 8,000,000 shares in Tethys Petroleum. The gross proceeds of the sale, before commission and expenses, amounts to C$23.6 million. The settlement date will be August 3, 2007 and the net proceeds received from the sale of these shares will be used by CanArgo to repay a portion of its existing debt.

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