Operating Revenues from Continuing Operations for the three month period ended March 31, 2009 deteriorated to $1.5 million from $2.6 million for the corresponding period for 2008. This deterioration was attributable to a decrease in the realised price for oil sold at the Ninotsminda Field in Georgia despite there being higher volumes of oil sold.

The Company reported net income for the three month period ended March 31, 2009 of $1.9 million compared to a net loss of $1.2 million in the corresponding period for 2008. This was attributable to the Company recording Total Other Income of $2.9 million compared to Total Other Expense of $1.0 million for the corresponding period for 2008. The improvement in net income attributable to Total Other Income was offset partially by an increased Operating Loss from Continuing Operations.

Operating Loss from Continuing Operations for the three month period ended March 31, 2009 increased to $1.0 million compared to an Operating Loss of $0.2 million in the corresponding period for 2008. This was due to the deterioration in Operating revenues from Continuing Operations, increased Field Operating Expenses and Direct Project Costs offset partially by reduced Selling, General and Administrative Expenses and reduced Depreciation, Depletion and Amortization.

Total Other Income for the three month period ended March 31, 2009 of $2.9 million included a $3.9 million gain in Settlement of Accounts Payable. This gain was attributable to a Settlement Agreement that the Company entered into on February 9, 2009 with WEUS Holding Inc ("WEUS") a subsidiary of Weatherford International Ltd as reported previously.

Please see the tables attached to this release.

The information set forth herein and in the exhibit is preliminary in nature, has been prepared by management and has not been reviewed or audited by the Company's auditors. Accordingly, such information does not necessarily reflect results of the Company's operations and financial condition that may be reportable after completion of a review or audit and, while management is reasonably confident that such information is materially accurate, such preliminary results may be subject to change and should not be regarded as a definitive report on results of operations and financial condition of the Company as at March 31, 2009 and as at December 31, 2008 and for the fiscal year then ended. Although these statements have been produced on a best effort basis and management believes they are accurate, they may not be relied upon.

As previously reported, the Company is currently in default in making interest payments under its outstanding Senior Subordinated Convertible Guaranteed Notes, due September 1, 2009 and its 12% Subordinated Convertible Guaranteed Notes, due June 28, 2010. The Company is continuing its negotiations with certain of the Note holders with a view to addressing such defaults. The Company is also currently in default under the terms of its Settlement Agreement with WEUS and is in discussions to resolve this default as well. There can be no assurance, however, that such negotiations and discussions will be successfully concluded.

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

Status and other announcements will be posted on the Company's website, www.canrgo.com.

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.