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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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SCHEDULE 13D
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO RULE 13d-1(a) AND (d) AND AMENDMENTS THERETO FILED
PURSUANT TO RULE 13d-2(a)
(Amendment No. 1 )1
CANARGO ENERGY CORPORATION
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(Name of Issuer)
Common Stock, par value $0.10 per share
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(Title of Class of Securities)
137225 10 8
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(CUSIP Number)
J.F. RUSSELL HAMMOND
PROVINCIAL SECURITIES LTD.
607 GILBERT HOUSE, BARBICAN, LONDON EC2 Y8BD ENGLAND
44-171-628-6184
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
JULY 15, 1998
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(Date of Event Which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box
[ ].
Page 1 of 8 Pages
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1 The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter the disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not
be deemed to be "filed" for the purpose of Section 18 of the Securities Act of
1934 or otherwise subject to the liabilities of that section of the Act but
shall be subject to all other provisions of the Act (however, see the Notes).
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CUSIP No. 137225 10 8 13D Page 2 of 8 Pages
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
PROVINCIAL SECURITIES LTD.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
LIBERIA
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NUMBER OF 7 SOLE VOTING POWER
SHARES 1,671,250
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BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 0
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EACH 9 SOLE DISPOSITIVE POWER
REPORTING 1,671,250
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PERSON WITH 10 SHARED DISPOSITIVE POWER
0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,671,250
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12 CHECK BOX IF AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
13%
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14 TYPE OF REPORTING PERSON*
IV
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CUSIP No. 137225 10 8 13D Page 3 of 8 Pages
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
J.F. RUSSELL HAMMOND
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
PF, WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED KINGDOM
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NUMBER OF 7 SOLE VOTING POWER
SHARES 63,750
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BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 4,212,322
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EACH 9 SOLE DISPOSITIVE POWER
REPORTING 63,750
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PERSON WITH 10 SHARED DISPOSITIVE POWER
4,212,322
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,276,072
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12 CHECK BOX IF AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
27.6%
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14 TYPE OF REPORTING PERSON*
IN, IA
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CUSIP No. 137225 10 8 13D Page 4 of 8 Pages
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
TERRENEX ACQUISITION CORPORATION
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
ALBERTA, CANADA
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NUMBER OF 7 SOLE VOTING POWER
SHARES 2,541,072
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BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 0
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EACH 9 SOLE DISPOSITIVE POWER
REPORTING 2,541,072
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PERSON WITH 10 SHARED DISPOSITIVE POWER
0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,541,072
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12 CHECK BOX IF AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
18.5%
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14 TYPE OF REPORTING PERSON*
IV
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CUSIP No. 137225 10 8 13D Page 5 of 8 Pages
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
MICHAEL R. BINNION
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
PF, WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
CANADA
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NUMBER OF 7 SOLE VOTING POWER
SHARES 518,635
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BENEFICIALLY 8 SHARED VOTING POWER
OWNED BY 2,541,072
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EACH 9 SOLE DISPOSITIVE POWER
REPORTING 518,635
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PERSON WITH 10 SHARED DISPOSITIVE POWER
2,541,072
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,059,707
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12 CHECK BOX IF AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11
21.4%
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14 TYPE OF REPORTING PERSON*
IN
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Page 6 of 8
ITEM 3. SOURCES AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
Item 3 of the Schedule 13D filed by the Reporting Persons, as
amended, is hereby amended by deleting the table after the first paragraph and
replacing it with the following:
<TABLE>
<CAPTION>
HOLDER EXCHANGEABLE SOURCE AMOUNT
SHARES (1)
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<S> <C> <C> <C>
Provincial 1,671,250 Working Capital US $ 216,317
Terrenex 1,820,032 Working Capital CDN. $1,871,155
Ruperts 194,843 Working Capital CDN. $ 100,000
MRB 13,792 Personal Funds CDN. $ 6,897
TV 24,000 Personal Funds US $ 24,000
</TABLE>
(1) Exchangeable Shares (post reverse split) held which may be exchanged for
shares of Common Stock of the Corporation.
ITEM 5. INTEREST IN THE SECURITIES OF THE ISSUER.
Item 5 of the Schedule 13D filed by the Reporting Persons, as amended,
is hereby amended to read in full as follows:
Provincial has the sole power to direct the vote or disposition (prior
to, during and after conversion of the Exchangeable Shares) for 1,671,250 (post
reverse split) shares of Common Stock of the Corporation. Provincial would
exercise its power to direct the vote or disposition of such securities in
accordance of the advice of its investment adviser, JFRH.
Pursuant to the CanArgo Stock Options and the 1995 Plan stock options
granted to JFRH, JFRH has the right to purchase 60,000 and 3,750 (post reverse
split) shares of Common Stock of the Corporation, respectively. JFRH would
expect to have the sole power to direct the vote or disposition of any shares of
Common Stock of the Corporation acquired by JFRH pursuant to the CanArgo Stock
Options and the 1995 Plan stock options.
Terrenex has the sole power to direct the vote or disposition (prior
to, during an after conversion of the Exchangeable Shares) for 1,820,032 (post
reverse split) shares of Common Stock of the Corporation. Pursuant to the
CanArgo Special Warrants and CanArgo Stock Purchase Warrants, Terrenex has the
right to receive/purchase 459,360 and 261,680 (post reverse split) shares of
Common Stock of the Corporation, respectively. Terrenex would expect to have the
sole power to direct the vote or disposition of any shares of Common Stock
acquired by Terrenex pursuant to the CanArgo Special Warrants and CanArgo Stock
Purchase Warrants. Terrenex would exercise its power to direct the vote or
disposition of such securities through its management and Board of Directors.
MRB has the sole power to direct the vote or disposition (prior to,
during and after conversion of the Exchangeable Shares) for 208,635 (post
reverse split) shares of Common Stock of the Corporation. Pursuant to the
CanArgo Stock Options and the 1995 Plan stock options granted to MRB, MRB has
the right to purchase 140,000 and 170,000 (post reverse split) shares of Common
Stock of the Corporation, respectively. MRB would expect to have the sole power
to direct the vote or disposition of any shares of Common Stock acquired by MRB
pursuant to the CanArgo Stock Options and the 1995 Plan stock options.
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Page 7 of 8
TV has the sole power to direct the vote or disposition (prior to,
during and after conversion of the Exchangeable Shares) for 24,000 (post reverse
split) shares of Common Stock of the Corporation.
Provincial disclaims any beneficial interest in any share of Common
Stock owned by JFRH, Terrenex, MRB and Ruperts or which JFRH, Terrenex, MRB and
Ruperts has the right to acquire. Terrenex disclaims any beneficial interest in
any share of Common Stock owned by Provincial, JFRH, MRB and Ruperts or which
Provincial, JFRH, MRB and Ruperts has the right to acquire. JFRH disclaims any
beneficial interest in any share of Common Stock owned by Provincial or Terrenex
or which Provincial or Terrenex has the right to acquire, other than such
beneficial interest that arises out of JFRH's service as investment adviser to
Provincial and director of Terrenex. MRB disclaims any beneficial interest in
any share of Common Stock owned by Provincial, Terrenex and Ruperts or which
Provincial, Terrenex and Ruperts has the right to acquire, other than such
beneficial interest that arises out of MRB's service as a director and officer
of Terrenex and Ruperts.
The 1,671,250 shares of Common Stock that Provincial owns and as to
which Provincial either has or would expect to have the sole power to direct the
vote or disposition, represent approximately 12.96% of that class of securities.
The 63,750 shares of Common Stock that JFRH has the right to acquire
through the exercise of CanArgo Stock Options and the 1995 Plan stock options as
to which JFRH either has or would expect to have the sole power to direct the
vote or disposition, represent approximately 0.56% of that class of securities.
The 2,541,072 shares of Common Stock that Terrenex owns and has the
right to acquire through the exercise of CanArgo Special Warrants and CanArgo
Stock Purchase Warrants, and as to which Terrenex either has or would expect to
have the sole power to direct the vote or disposition, represent approximately
18.46% of that class of securities.
The 518,635 shares of Common Stock that MRB and Ruperts own and have
the right to acquire through the exercise of CanArgo Stock Options and the 1995
Plan stock options as to which MRB either has or would expect to have the sole
power to direct the vote or disposition, represent approximately 4.42% of that
class of securities.
The 24,000 shares of Common Stock that TV owns and as to which TV has
the sole power to direct the vote or disposition, represents approximately
0.002% of that class of securities.
The 4,802,708 shares of Common Stock that Provincial, JFRH, Terrenex,
MRB and Ruperts in the aggregate own and have the right to acquire through the
exercise of the CanArgo Special Warrants, CanArgo Stock Purchase Warrants,
CanArgo Stock Options and the 1995 Plan stock options, and as to which
Provincial, JFRH, Terrenex, MRB and Ruperts either has or would expect to have
the sole power to direct the vote or disposition, represent approximately 29.97%
of that class of securities.
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Page 8 of 8
During the past sixty days, Provincial, JFRH, Terrenex, MRB, Ruperts,
TV and KC have not engaged in any transactions in Common Stock, other than
pursuant to the terms of the Combination Agreement and the 1995 Plan stock
options as described herein.
SIGNATURE
After reasonable inquiry and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Dated: April 30, 1999
PROVINCIAL SECURITIES LTD.
By: /s/ J.F. Russell Hammond
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J.F. Russell Hammond, Investment Adviser
/s/ J.F. Russell Hammond
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J.F. Russell Hammond
Terrenex Acquisition Corporation
By: /s/ Michael R. Binnion
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Michael R. Binnion, President
/s/ Michael R. Binnion
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Michael R. Binnion
