CANARGO ENERGY CORP

20 Oct 2008material agreement▼ BadMajor

On October 20, 2008 CanArgo and the eight standby underwriters agreed to extend the rights offering subscription period from a maximum of four weeks to seven weeks, moving the U.S. expiry to November 21, 2008 and the Norwegian (VPS) subscription period to November 11, 2008. The filing says the underwriters had told the company that, in light of current market conditions, they are or may be unable or unwilling to meet their underwriting obligations, and the extension lets CanArgo keep talking to them and to other parties interested in alternative underwriting. This puts the July backstop in doubt.

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25 July 2008material agreement● NeutralMajor

On July 24, 2008 CanArgo signed eight firm commitment underwriting agreements with eight foreign private investors, who agreed to buy up to 242,000,000 unsubscribed shares (up to $24.2 million) at $0.10 per share in its proposed rights offering first announced April 23, 2008. Each investor gets a 7% commission (cash or shares, at the investor's option; existing stockholders only on the part above their pre-emptive share), payable even if the offering is not carried out, and the subscription period is capped at four weeks. This backstops the offering, which could add new shares at a much lower price than the earlier US$1.00 placements.

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23 Oct 2007drilling progress report▼ BadMajor

The Kumisi #1 well in Georgia is being plugged and abandoned after tests of Eocene sandstones gave water and non-commercial gas. The company says a large gas prospect may still exist in the structure and results will be reviewed. This ends the Kumisi well the company had planned. At Manavi M12, Schlumberger told the company it cannot mobilise the fracture equipment before end of October or early November, so stimulation slips from the late-September plan to November.

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14 Aug 2007capital raising announcement● NeutralMajor

In August 2007, after the sale of CanArgo's interest in Tethys, about US$21 million of net proceeds was used to repay all of the Senior Secured Notes (US$20,840,396.49 put in escrow around August 3) and part of the Senior Subordinated Notes. To compensate holders for giving up their conversion rights, CanArgo issued warrants over 17,916,667 shares at US$1.00 (expiring December 6, 2007) to senior holders and 3,750,000 at US$1.00 (expiring November 13, 2007) to subordinated holders. It also agreed to sell 2,500,000 shares at US$1.00 to three investors (US$2.5 million), with 5 million warrants at US$1.00 to August 2009, to fund the Manavi M12 well fracturing. This sharply cuts debt and removes the secured notes, but the Tethys stake has been sold and the warrants and new shares add potential dilution. The text provided is cut off, so the exact amount of subordinated notes repaid and remaining is not stated.

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18 June 2007capital raising announcement● NeutralMajor

On June 13, 2007 CanArgo finalised the earlier debt-for-Tethys-shares swap: US$15 million of its notes were converted into 6 million Tethys shares, leaving CanArgo with 8 million Tethys shares, about 29.7% of Tethys. The converting holders received compensatory warrants over CanArgo stock (11.1 million at US$0.90 for Ingalls & Snyder and 5 million at US$1.00 for Persistency). Separately, noteholders agreed that the roughly US$2.1 million of interest due June 30, 2007 would be paid with new notes on the same terms instead of cash, convertible into up to 2,250,000 CanArgo shares. This completes the pending conversion, but CanArgo's Tethys stake is now below the roughly 67% held after February and interest is being deferred into more debt, which adds potential dilution. A Toronto Stock Exchange conditional approval for a Tethys listing (subject to an IPO) replaces the earlier AIM plan.

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11 June 2007capital raising announcement● NeutralMajor

On June 5, 2007 CanArgo agreed to convert US$10 million of its senior secured notes and US$5 million of the subordinated notes into 6 million Tethys shares at US$2.50 each, with the shares supplied by CanArgo Limited. The conversion was due about five business days later. As compensation, the converting holders get warrants over CanArgo shares: 11,111,111 at $0.90 for the senior holders and 5 million at $1.00 for Persistency. This reduces CanArgo's debt by US$15 million but hands over some of its Tethys stake and adds potential dilution. Other note holders also consented, and CanArgo Limited may sell Tethys shares at a minimum of US$2.50.

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21 Feb 2007debt financing▲ GoodMajor

On February 15, 2007 Tethys Petroleum Limited, CanArgo's Kazakhstan subsidiary, issued about 34.7 million shares to outside investors for about US$17.3 million gross (US$16.8 million net), roughly 33% of Tethys. Proceeds fund Tethys and its Kazakh subsidiary, and the investors are working toward a listing of Tethys. In connection with this, the holders of the senior secured, US$13 million subordinated and 12% notes agreed to release Tethys and its Kazakh subsidiary from their guarantees. A new pledge covers the Tethys shares CanArgo Limited holds. CanArgo therefore no longer owns all of its Kazakh business, and Tethys now has minority shareholders with consent rights over key decisions.

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