Exhibit 99(3)
[CANARGO ENERGY CORPORATION LETTERHEAD]
FOR IMMEDIATE RELEASE IN NORTH AMERICA AND EUROPE
June 28, 2000 - CanArgo Closes US$15 million Private Placement
Calgary, Alberta, Oslo, Norway-- CanArgo Energy Corporation (OTCBB: GUSH, OSE:
CNR) is pleased to announce that it has closed a private placement of 15,660,916
shares at NOK 9.00 per share (approximately US$1.04 per share). Net proceeds
from the placement were some NOK 132 million (approximately US$15 million).
After completion of the private placement, CanArgo will have 60,902,892 common
shares issued and issuable.
Den norske Bank ASA, DnB Markets, Orkla Enskilda Securities ASA and Sundal
Collier & Co ASA acted as placement agents for this transaction. The shares to
be issued in connection with this placement were issued under Regulation S of
the Securities Act of the United States and have not been registered under the
Securities Act of 1933, as amended, and may not be offered or sold in the United
States or to U.S. persons (as defined in such Regulation) absent registration or
an applicable exemption from registration. The Offering will prior to the
listing of the Shares require a prospectus under the Oslo Stock Exchange
Regulations, Chapter 18 (offering of more than 10% of the share capital). The
Offering will not require a prospectus under the Securities Trade Act of 1997,
Chapter 5 as the Offer is in compliance with the exemptions from the obligation
to prepare a prospectus in connection with offers made to professional investors
(the securities issued in minimum lots of EURO 40,000 in terms of subscription
price).
CanArgo intends to use the net proceeds from the private placement principally
for activities on its existing projects in Georgia and the Caspian Sea as well
as to pursue the rights to new oil & gas licenses and opportunities in Georgia.
The Company anticipates that the proceeds from this placing will enable it to
progress these opportunities, and enable development of the Company's business
in its focus area.
CanArgo Energy Corporation is an independent oil and gas exploration and
production company operating in Eastern Europe. CanArgo's principal oil and gas
operations are located in the Republic of Georgia. The Company's activities at
its primary field in Georgia, the Ninotsminda field, are conducted through its
78.8% owned subsidiary, Ninotsminda Oil Company Limited. In addition, the
Company has interests in several other oil and gas prospects and in refining,
marketing, independent power production and oilfield technology activities.
The matters discussed in this press release include forward looking statements,
which are subject to various risks, uncertainties and other factors that could
cause actual results to differ materially from the results anticipated in such
forward looking statements. Such risks, uncertainties and other factors include
the uncertainties inherent in oil and gas development and production activities,
the effect of actions by third parties including government officials,
fluctuations in world oil prices and other risks detailed in the Company's
reports on Forms 10-K and 10-Q filed with the Securities and Exchange
Commission. The forward-looking statements are intended to help shareholders
and others assess the Company's business prospects and should be considered
together with all information available. They are made in reliance upon the
safe harbor provisions of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended. The Company
cannot give assurance that the results anticipated herein will be attained.
For further information, contact:
North America Norway
Tel: +403.777.1185 Eric Cameron, Gambit
Toll Free 1-888-777-7974 Tel : +47.22.04.82.00
E-mail : [email protected] Fax : +47.22.04.82.01
web: www.canargo.com
