Item 7.01. Regulation FD Disclosure.

January 2, 2009 - Guernsey, British Isles - CanArgo Energy Corporation ("CanArgo" or the "Company") (OSE: CNR, AMEX:CNR) today announced that interest payments of US$868,000 in aggregate due on December 31, 2008 on CanArgo's senior subordinated and subordinated convertible debt, held by certain accredited investors arranged by Ingalls & Snyder LLC and Persistency Capital LLC (the "Noteholders"), were not paid. Under the terms of the respective Note Purchase Agreements under which such debt was incurred the failure to pay such interest payments becomes an event of default after the expiration of a five business day grace period and such debt becomes accelerated upon receipt of a notice of default from the Noteholders. To date, no such notices have been received by the Company. The Company is currently engaged in discussions with the Noteholders aimed at resolving the situation.
CanArgo is an independent oil and gas exploration and production company with its oil and gas operations currently located in Georgia.
The information in this item 7.01 (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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Item 9.01. Financial Statements and Exhibits.

(d) Exhibits:

Exhibit No. Exhibit Description

99.1 Press Release dated January 2, 2009 issued by CanArgo Energy Corporation.

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