UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The
Securities Exchange Act of 1934
Date of
Report (Date of earliest event
reported) December 4, 2006
CANARGO ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
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| Delaware
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001-32145
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91-0881481 |
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(State or other jurisdiction
of incorporation)
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(Commission File Number)
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(I.R.S. Employer
Identification No.) |
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| CanArgo Energy Corporation |
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| P.O. Box 291, St. Peter Port |
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| Guernsey, British Isles
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GY1 3RR |
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| (Address of principal executive offices)
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(Zip Code) |
Registrant’s telephone number, including area code (44) 1481 729 980
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c)) |
TABLE OF CONTENTS
The matters discussed in this Current Report on Form 8-K 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
will be attained.
Section 7—Regulation FD
Item 7.01. Regulation FD Disclosure.
The following information is furnished pursuant to Item 7.01, “Regulation FD Disclosure.”
December 4th, 2006 — Tbilisi, Georgia — CanArgo Energy Corporation (”CanArgo” or the
“Company”) (OSE: CNR, AMEX: CNR) today issued an operations update on its drilling activities in
Georgia.
In the Manavi 12 well the 7 inch casing was successfully run and cemented at a depth of 15,360 feet
(4,682 metres) in the Upper Cretaceous. The well was then drilled in a 6 1/2 inch hole to a depth of
15,735 feet (4,796 metres) penetrating the higher pressure and more porous / permeable reservoir
interval previously encountered in original well bore where a major hydrocarbon influx was
observed. Hydrocarbons were again recorded in this zone. At this point, it was planned to perform
an open hole drill stem test (DST) on this interval with Baker Hughes providing the down hole
testing equipment, in order to obtain interim flow and pressure data. Unfortunately, due to on
going delays encountered by Baker and its shipping agent initially in Russia and later in
Azerbaijan, the DST tools have not yet arrived in Georgia. It is now believed that it would be at
least another six days before the interim test could begin. With the Saipem rig and crew having
already been on stand-by for a week, and with continued uncertainty as to the delivery date of the
DST tools, the costs have become prohibitively expensive to remain on stand-by so it has been
decided to drill ahead to the planned total depth (TD) of approximately 16,732 feet (5,100 metres)
and then carry out a full production test on the well. We expect to reach TD by the end of the
year, then run electric logs and case the well prior to the production test.
The well is currently drilling ahead at 15,761 feet
(4,804 metres).
Operations have commenced at the Kumisi site, where it is planned to drill a well to test an up-dip
extension of a Soviet era gas discovery. The well will be drilled to a planned TD of approximately
12,140 feet (3,700 metres) in the Cretaceous using CanArgo Rig #2 which is being mobilised from the
Norio location. The well will be spudded once a drilling permit has been obtained. This is being
temporarily delayed due to an ongoing reorganisation of the State Regulator for Oil and Gas
Resources in Georgia, the body responsible for issuing permits, but it is hoped that the matter
will be resolved prior to the end of the year. In the meantime, and in order to avoid any delays
with commencing the well, the Prime Minister of Georgia has provided CanArgo with a letter
indemnifying the company for any liabilities which may arise from operating on the site.
Earlier this year it was announced that the Company’s subsidiary CanArgo (Nazvrevi) Limited had
signed a Memorandum of Understanding with the Georgian government which commits the government to
purchasing any gas discovered at Kumisi on agreed commercial terms on a take-or-pay basis.
The information in this report (including its exhibit) shall not be deemed to be “filed” for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or
otherwise subject to liability of that section. The information in this report (including its
exhibit) shall not be incorporated by reference into any registration statement or other document
filed under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general
incorporation language in such filing, except as shall be expressly set forth by specific reference
in such filing.
A copy of the Press Release is attached hereto as Exhibit 99.1.
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