CanArgo wins tender for new acreage in eastern Georgia

Nov. 8, 2002
CanArgo Norio Ltd., a unit of London-based CanArgo Energy, has been awarded the oil and gas exploration and production rights to Block XI(G) (Tbilisi) and Block XI(H) (Rustavi) in eastern Georgia.

By OGJ editors

HOUSTON, Nov. 8 -- CanArgo Norio Ltd., a unit of London-based CanArgo Energy Corp., has been awarded the oil and gas exploration and production rights to Block XI(G) (Tbilisi) and Block XI(H) (Rustavi) in eastern Georgia. Tender conditions were issued by the Georgian State Agency for Regulation of Oil and Gas Resources.

Following negotiations of a production-sharing agreement with Georgian State authorities, CanArgo will be awarded a license for both blocks, the company said.

The blocks, which cover 486 sq km, neighbor CanArgo's existing acreage. Oil and gas shows and limited production have been obtained from the blocks in the past, CanArgo said, adding that potential exists in the Upper, Middle, and Lower Eocene formations, as well as the Cretaceous.

The company said that it plans to carry out further exploration on the blocks and appraisal activities that will be in line with a continuing program in its nearby acreage.

CanArgo also has reached an agreement with the other shareholders in CanArgo Norio to increase its interest in CanArgo Norio to 65% from 50%. This increase, the company said, is "in light of investments made in the Norio MK72 exploration well," which targeted a large oil prospect on Nario block near Samgori field. CanArgo is currently seeking a partner to help complete the well, which has been suspended at a depth of 2,932 m. Target depth is 4,200 m, the company said.