CanArgo Energy Corporation Announces Partnership with AES Corporation to Explore Gas Prospects in Georgia

Strategic Insights -

CanArgo Energy Corporation, a leading oil and gas exploration and production company operating in Eastern Europe, has announced a significant partnership with AES Corporation to explore gas prospects on its Ninotsminda license in Georgia. The agreement marks a major step forward in evaluating the deeper gas potential of the region and solidifies the company's excellent business relationship with AES. Under the terms of the partnership, AES Gardabani, a subsidiary of AES Corporation, will earn a 50% interest in identified gas prospects by funding a portion of the cost of a three-well exploration program. The program, which will be implemented by CanArgo's existing operations unit in Georgia, will target the Cretaceous stratigraphic level and has the potential to satisfy AES's requirements at the Gardabani thermal power plant.

Key Takeaways:

  • CanArgo Energy Corporation has partnered with AES Corporation to explore gas prospects on its Ninotsminda license in Georgia.
  • The partnership will see AES Gardabani, a subsidiary of AES Corporation, earn a 50% interest in identified gas prospects by funding a portion of the cost of a three-well exploration program.
  • The exploration program will target the Cretaceous stratigraphic level and will be implemented by CanArgo's existing operations unit in Georgia.
  • The partnership has the potential to satisfy AES's requirements at the Gardabani thermal power plant and could contain sufficient gas to more than meet the power plant's needs.
  • CanArgo's Chairman and CEO, Dr. David Robson, commented that the agreement marks a significant step forward in evaluating deeper gas potential and solidifies the company's excellent business relationship with AES.
  • CanArgo's principal oil and gas operations are located in the republic of Georgia, with the company conducting its activities through its wholly owned subsidiary, Ninotsminda Oil Company Limited.
  • The partnership demonstrates CanArgo's commitment to oil and gas exploration and production in Eastern Europe and its ability to form strategic partnerships with major companies like AES Corporation.

Statistics:

  • AES Gardabani will earn a 50% interest in identified gas prospects.
  • The exploration program will consist of three wells, with the first well (N97) expected to commence next week.
  • CanArgo has identified several drillable gas prospects in its NOC acreage, which could contain sufficient gas to more than meet AES's requirements.
  • AES Corporation owns or has interests in 141 plants totaling over 48,000 megawatts in 20 countries.
  • AES Corporation has numerous projects in construction or late stages of development, with assets in excess of $20 billion.

Sources:

  • Business Editors, CALGARY, Alberta & OSLO, Norway--(BUSINESS WIRE)--July 24, 2000
  • CanArgo Energy Corporation (OTCBB:GUSH)(OSE:CNR)
  • AES Corporation
  • AES Gardabani
  • Ninotsminda Oil Company Limited