Exhibit 99(2)
[CANARGO ENERGY CORPORATION LETTERHEAD]
FOR IMMEDIATE RELEASE IN NORTH AMERICA AND EUROPE
August 18, 2000 - CanArgo closes US$14.4 million private placement
Calgary, Alberta, Oslo, Norway - CanArgo Energy Corporation (OSE: CNR, OTCBB:
GUSH) is pleased to announce that it has closed a private placement of
12,000,000 shares at NOK 11.20 per share (approximately US$1.27 per share). Net
proceeds from the placement were some NOK 127 million (approximately US$14.4
million). After completion of the private placement, CanArgo will have
72,388,212 common shares issued and outstanding.
Sundal Collier & Co ASA and Den norske Bank ASA, DnB Markets 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).
This private placement satisfies the second and final tranche of CanArgo's near
term funding requirements. With sufficient capital on hand to pursue its current
business strategy in Georgia, CanArgo does not anticipate raising additional
equity funds for the foreseeable future.
CanArgo intends to use the net proceeds from the private placement principally
to pursue early oil and cash flow generating opportunities in the Republic of
Georgia. The Company anticipates that the proceeds from this placement will
enable it to progress these opportunities, and enable further 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
wholly 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
