GUERNSEY, CHANNEL ISLANDS (AMEX: CNR) (OSLO: CNR) today reported results for the nine months ending September 30, 2007.

Please see the tables attached to this release.

The Form 10-Q filed with the Securities and Exchange Commission in the United States can be accessed at the following link;

http://www.sec.gov/Archives/edgar/data/310316/000115697307001661/0001156973-07-001661-index.htm

Shareholders are also reminded that there will be a briefing meeting held at the Scandic KNA Hotel, Parkveien 68, Oslo, Norway at 09:00 am Central European Time on Tuesday, November 13, 2007 to present the Q3 Results and to provide an update on the Company's current operations in Georgia.

CanArgo is an independent oil and gas exploration and production company with its oil and gas operations currently located in Georgia.

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 will be attained.


CANARGO ENERGY CORPORATION AND SUBSIDIARIES

Selected Financial Information
Consolidated Condensed Statements of Operations
Expressed in United States dollars

                              Unaudited                  Unaudited
                  ----------------------------- ----------------------------
                        Three Months Ended            Nine Months Ended
                   September 30,  September 30, September 30,  September 30,
                           2007           2006          2007           2006
                  ----------------------------- ----------------------------
                                (Expressed in United States dollars)
Operating
 Revenues from
 Continuing
 Operations:
 Oil and gas sales     $ 32,961  $   2,090,147  $  3,394,808  $   4,092,224
----------------------------------------------------------------------------
                         32,961      2,090,147     3,394,808      4,092,224
----------------------------------------------------------------------------
Operating
 Expenses:
 Field operating
  expenses               16,427        446,010       690,851      1,340,169
 Direct project
  costs                 173,105        235,159       515,939        677,656
 Selling, general
  and
  administrative      1,901,454      2,891,133     5,327,739      7,810,174
 Depreciation,
  depletion and
  amortization          139,171        700,391     1,516,246      2,231,319
                  ----------------------------- ----------------------------
                      2,230,157      4,272,693     8,050,775     12,059,318
                  ----------------------------- ----------------------------
Operating Loss
 from Continuing
 Operations          (2,197,196)    (2,182,546)   (4,655,967)    (7,967,094)
                  ----------------------------- ----------------------------
Other Income
 (Expense):
 Interest income         63,329         70,720       250,146        278,150
 Interest and
  amortization of
  debt discount and
  expense            (1,144,539)    (2,020,279)   (5,307,304)    (4,601,955)
 Loss/Cost on debt
  extinguishment     (5,592,828)             -   (12,127,494)             -
 Foreign exchange
  gains (losses)         (7,497)       (28,509)      (38,806)      (166,560)
 Other               (1,025,067)       (65,793)     (761,196)      (182,241)
                  ----------------------------- ----------------------------
Total Other
 Expense             (7,706,602)    (2,043,861)  (17,984,654)    (4,672,606)
                  ----------------------------- ----------------------------

Loss from
 Continuing
 Operations Before
 Taxes               (9,903,798)    (4,226,407)  (22,640,621)   (12,639,700)
 Income taxes                 -              -             -              -
                  ----------------------------- ----------------------------
Loss from
 Continuing
 Operations          (9,903,798)    (4,226,407)  (22,640,621)   (12,639,700)

Net Income (Loss)
 from Discontinued
 Operations, net
 of taxes               (55,873)    (1,491,710)   11,493,685     (1,242,595)
                  ----------------------------- ----------------------------
Net Loss           $ (9,959,671) $  (5,718,117) $(11,146,936) $ (13,882,295)
                  ----------------------------- ----------------------------
                  ----------------------------- ----------------------------

 Weighted average
  number of
  common shares
  outstanding
 - Basic            239,053,232    224,260,628   238,557,879    223,942,445
                  ----------------------------- ----------------------------
 - Diluted          239,053,232    224,260,628   238,557,879    223,942,445
                  ----------------------------- ----------------------------

Basic Net Income
 (Loss) Per Common
 Share
 - from continuing
  operations         $    (0.04) $       (0.02) $      (0.09) $       (0.06)
 - from
  discontinued
  operations         $    (0.00) $       (0.01) $       0.05  $       (0.01)
                  ----------------------------- ----------------------------
Basic Net Income
 (Loss) Per Common
 Share               $    (0.04) $       (0.03) $      (0.05) $       (0.06)
                  ----------------------------- ----------------------------
Diluted Net
 Income (Loss) Per
 Common Share
- from continuing
 operations          $    (0.04) $       (0.02) $      (0.09) $       (0.06)
- from
 discontinued
 operations          $    (0.00) $       (0.01) $       0.05  $       (0.01)
                  ----------------------------- ----------------------------
Diluted Net
 (Income) Loss Per
 Common Share        $    (0.04) $       (0.03) $      (0.05) $       (0.06)
                  ----------------------------- ----------------------------


CANARGO ENERGY CORPORATION AND SUBSIDIARIES

Selected Financial Information
Consolidated Condensed Balance Sheets
Expressed in United States dollars

                                             September 30,      December 31,
                                                     2007              2006
                                        ------------------------------------
                                        (Expressed in United States dollars)
                                               (Unaudited)         (Audited)

ASSETS

Current Assets
Cash and cash equivalents                 $     7,079,858  $     14,689,289
Restricted cash                                         -           299,777
Accounts receivable                               254,551           503,953
Crude oil inventory                             1,067,752           452,500
Prepayments                                       407,527         2,254,563
Assets to be disposed                               8,120         5,965,341
Other current assets                              169,698           163,561
                                        ------------------------------------
 Total current assets                     $     8,987,506  $     24,328,984

Non Current Assets
Prepaid financing fees                             92,406           288,632
Assets to be disposed                                   -        24,560,166

Capital assets, net (including
 unevaluated amounts of $57,586,235 and
 $55,097,099, respectively)                    93,091,460        87,307,700
                                        ------------------------------------
Total Assets                              $   102,171,372  $    136,485,482
                                        ------------------------------------
                                        ------------------------------------

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable - trade                  $     1,084,432  $      3,672,731
Deferred revenue                                        -           484,515
Accrued liabilities                             6,432,267         6,918,468
Liabilities to be disposed                        374,998         1,625,282
                                        ------------------------------------
 Total current liabilities                $     7,891,697  $     12,700,996

Long term debt                                 11,292,148        37,264,270
Other non current liabilities                      64,671         1,260,079
Provision for future site restoration             220,590           205,200
Liabilities to be disposed                              -         3,566,055
                                        ------------------------------------

Total Liabilities                         $    19,469,106  $     54,996,600
                                        ------------------------------------

Temporary Equity                          $     2,119,530  $      2,119,530
                                        ------------------------------------




Stockholders' equity:
 Common stock, par value $0.10; authorized
  - 500,000,000 shares at September 30,
  2007 and 375,000,000 at December 31,
  2006; shares issued, issuable and
  outstanding - 242,120,974 at September
  30, 2007 and 237,145,974 at December
  31, 2006                                     24,212,096        23,714,596
 Capital in excess of par value               245,259,933       233,397,113
 Accumulated deficit                         (188,889,293)     (177,742,357)
                                        ------------------------------------
  Total stockholders' equity              $    80,582,736  $     79,369,352
                                        ------------------------------------
Total Liabilities, Temporary Equity and
 Stockholders' Equity                     $   102,171,372  $    136,485,482
                                        ------------------------------------
                                        ------------------------------------

Contacts: CanArgo Energy Corporation - USA Sabin Rossi VP External Affairs and Investor Relations (617) 669-1841 (617) 973-6406 (FAX) Email: sabin@canargo.com Gambit H&K AS - NORWAY Eric Cameron +47 22 04 82 11