CanArgo Recommences Work on the Manavi Prospect in Georgia

CanArgo Energy has recommenced on the Manavi prospect in the Republic of Georgia through a farm-in by a local Georgian oil and gas company. This farm-in has led to the recommencement of drilling operations on the M11 well, which was suspended last year following the withdrawal of the US power company AES from the project.

The Manavi area exploration well M11 had been cased at a depth of 4,182 meters, above the primary objective. Plans are now to drill the well to a total depth of 5,100 meters. Targets for the well are the Middle Eocene sequence, which is the main reservoir in CanArgo's adjacent Ninotsminda field, the Lower Eocene, which was found to be oil bearing in the nearby N100 well, and the Cretaceous. The Cretaceous prospect is a potentially large structure, which if hydrocarbon bearing, is thought likely to contain gas condensate.

Dr. David Robson, Chairman and Chief Executive Officer of CanArgo commented, "With this farm-in, and the recently announced farm-in to the Norio prospect, our Georgian exploration program is back on track, without requiring substantial funding from CanArgo. This gives the company access to high potential upside whilst focusing our primary resources on the horizontal development program on the Ninotsminda field. Here we are planning a further horizontal well in the fourth quarter of this year following the success of the last two wells. In addition the Manavi well should give us further useful information for the development of the eastern part of the Ninotsminda field itself."