CanArgo Energy concludes agreement with state of Georgia

Canada's CanArgo Energy says it has concluded an agreement with the former-soviet state of Georgia on its participation in the Norio Block XIC. Under the agreement with JSC National Oil Company, CanArgo has a one year right to negotiate exclusively for a Production Sharing Contract featuring similar terms to those applying to its existing Nazvrevi/Block XIII contract.
The company says it will conduct a seismic acquisition program on the Block later this summer to firm up its planned drilling program for 2001. Costs of the seismic program will be offset against commitments under the PSC and will be refunded in the event that a PSC is not concluded within the one year exclusivity period.
CanArgo plans to take a partner in this project, it said. Covering an area of 1,520 sq km close to the capital Tbilisi, the Block lies to the immediate north of the large Samgori oilfield and adjacent to CanArgo producing Ninotsminda field. In addition to two existing shallow fields, available data has identified several structures in the deeper Middle Eocene and Cretaceous horizons.