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    CanArgo Energy Corporation: N100 Well Experiences Blow-Out
    via COMTEX

    September 13, 2004

    TBILISI, GEORGIA, Sep 13, 2004 (CCNMatthews via COMTEX) --

    CanArgo Energy Corporation (OSE: CNR; AMEX: CNR) today announced that its N100 well on the Ninotsminda Field in Georgia had experienced a blow-out on September 10, 2004. There are no current reports of any injuries or material damage to property.

    The N100 well, which was originally drilled as an exploration well for the Cretaceous reservoir, reached TD at 16,165 feet (4,927 metres) in 2002. Subsequently the well was sidetracked as a horizontal producer in the shallower Middle Eocene section, and well maintenance activities were underway in preparation for a further horizontal wellbore from this well, to be drilled as part of the recently announced under balanced coiled tubing drilling program, when the blow-out occurred.

    Currently the well is flowing a considerable amount of oil and gas under what appears to be significant pressure. It is presently unclear from which interval the flow is coming. Measures to control the situation have already resulted in a reduction of the flow, and one of the world's leading well control specialists is scheduled to arrive today to assist in capping the well.