Document:

<PAGE>
                                                                   Exhibit 10.43

THIS AGREEMENT is made as a Deed the 30th day of April 2004:-

BETWEEN

(1)   CANARGO ENERGY CORPORATION, a company registered in Delaware,USA and
      having a place of business at PO Box 291, St. Peter Port, Guernsey GY1 3RR
      (the "COMPANY"); and

(2)   C A FIDUCIARY SERVICES LIMITED AS TRUSTEES OF THE SP525A SETTLEMENT of PO
      Box 198, St Peter Port, Guernsey, GY1 4HU (the "LENDER");

WHEREAS:-

(A)   The Lender has agreed to advance to the Company the Loan (as hereinafter
      defined) for the purpose of funding the Company's short term working
      capital requirements including the acquisition of long lead equipment on
      the terms and subject to the conditions set out in this Agreement; and

(B)   In consideration for the Lender agreeing to advance the Loan to the
      Company the Company has agreed to issue to the Lender a Warrant (as
      hereinafter defined) to subscribe for certain shares of common stock of
      par value of US$0.10 each in the capital of the Company on the terms and
      subject to the conditions set out in this Agreement.

NOW THEREFORE IT IS IT IS AGREED as follows:-

1     DEFINITIONS AND INTERPRETATION

      1.1   In this Agreement unless the context otherwise requires

      "CORNELL FACILITY" means a Standby Equity Distribution Agreement between
      Cornell and the Company;

      "DEFAULT INTEREST RATE" means fifteen per cent (15%) per annum;

      "EXERCISE NOTICE" means a notice in writing in the form set out in Part 2
      of the Schedule served by the Lender on the Company pursuant to Clause
      6.2;

      "EXTRAORDINARY RESOLUTION" for the purposes of Clause 10 means a
      resolution proposed at a meeting of the holders of outstanding warrants to
      subscribe for shares of common stock of US$0.10 each in the capital of the
      Company duly convened and held and passed by a majority consisting of
      warrant holders entitled to subscribe for not less than 50 per cent of the
      shares of common stock of US$0.10 each in the capital of the Company which
      are subject to outstanding warrants;

      "EXERCISE PERIOD" means the period of 5 years commencing on the date of
      this Agreement;

      "EXERCISE PRICE" means a price of US$1.05 per Warrant Share;

      "INITIAL DEFAULT PERIOD" means a period of one month commencing on the
      date of expiry of the Term;

      "INTEREST RATE" means seven and a half per cent (7.5%) per annum;

      "LOAN" means the sum of(pound)170,000 (One hundred and Seventy Thousand
      Pounds Sterling);

<PAGE>

      "PENALTY INTEREST RATE" means twenty per cent (20%) per annum;

      "SCHEDULE" means the schedule in two parts attached to and forming part of
      this Agreement;

      "TERM" means a period of six months commencing on the date of drawdown by
      the Company of the Loan or any part thereof;

      "WARRANT" means a warrant to subscribe for the Warrant Shares pursuant to
      Clause 5.1;

      "WARRANT CERTIFICATE" means a certificate in the form set out in Part 1 of
      the Schedule; and

      "WARRANT SHARES" means 300,000 shares of common stock of par value of
      US$0.10 in the capital of the Company.

      1.2   In this Agreement, unless otherwise specified or the context
            otherwise requires:-

      (a)   words importing the singular only and shall include the plural and
            vice versa;

      (b)   words importing any gender shall include all other genders;

      (c)   reference to a Clause or Recital is to a clause or recital of this
            Agreement;

      (d)   reference to the Schedule is to the schedule to this Agreement;

      (e)   words importing the whole shall be treated as including a reference
            to any part thereof;

      (f)   reference to a "person" includes any individual, firm, company or
            other body corporate wherever incorporated or established,
            corporation, government, state or agency of state, trust or
            foundation, or any association, partnership or unincorporated body
            (whether or not having separate legal personality) or two or more of
            the foregoing; and

      (g)   reference to this Agreement or to any other document shall be
            construed as references to this Agreement or to that other document
            as modified, amended, varied, supplemented, assigned, novated or
            replaced from time to time.

      1.3   Headings used in this Agreement shall not affect its construction or
            interpretation.

      1.4   The Schedule and Recitals form part of this Agreement and have the
            same full force and effect as if expressly set out in their entirety
            in the operative part of this Agreement.

2     THE LOAN

      2.1   The Lender hereby agrees to advance the Loan to the Company on the
            terms and subject to the conditions set out in this Agreement.

      2.2   The Loan shall be made available to the Company and the Company
            shall be entitled to draw down all or any part of the Loan
            immediately following the execution of this Agreement.

      The Loan shall be made available and drawn down in one tranche, and upon
      drawdown shall be forwarded to the Company's bank account the details of
      which are as follows:-

<PAGE>

      CanArgo Energy Corporation Sterling Account
      Account Number: 82490951
      Sort Code: 40-49-24
      HSBC Bank International Limited
      PO Box 315
      St Peter Port
      Guernsey GY1 3JQ
      Channel Islands
      SWIFT: MIDLJESH

3     INTEREST

      3.1   Subject to Clause 3.2, the Loan shall bear interest at the Interest
            Rate. Such interest shall accrue from day to day from the date of
            drawdown of the Loan until the date of payment (both dates
            inclusive) and shall be calculated on the basis of actual days
            elapsed and a 365 day year.

      3.2   In the event that the Company shall fail to repay the Loan and all
            interest accrued thereon in full on or before the expiry of the Term
            then:-

      (a)   the outstanding balance of the Loan and all accrued interest shall
            bear interest at the Default Interest Rate which shall accrue from
            day to day from the date of the expiry of the Term until the date of
            payment (both dates inclusive) during the Initial Default Period;
            and

      (b)   any amount of the Loan and all accrued interest which remains
            outstanding following the expiry of the Initial Default Period shall
            bear interest at the Penalty Interest Rate which shall accrue from
            day to day from the date of the expiry of the Initial Default Period
            until the date of payment (both dates inclusive) and shall be
            calculated on the basis of actual days elapsed and a 365 day year.

4     REPAYMENT

      4.1   The Loan together with all interest accrued thereon shall be repaid
            in full by the Company to the Lender on or before the date of expiry
            of the Term. In the event that the Company raises in excess of
            US$10,000,000 by way of an equity offering(s) the Loan shall be
            repayable within 7 days of receipt by the Company of the proceeds of
            that offering.

      4.2   In the event that the Company shall be unable to repay the Loan and
            all interest accrued thereon in accordance with Clause 4.1, the
            Company hereby unconditionally and irrevocably undertakes to the
            Lender that it shall use all reasonable endeavours to draw down
            sufficient funds from the Cornell Facility in order to repay such
            sums as soon as reasonably practicable following the expiry of the
            Term.

5     GRANT OF WARRANT

      5.1   Subject only to the Lender advancing the Loan to the Company, the
            Company hereby grants the Warrant to the Lender to subscribe for any
            or all of the Warrant Shares at the Exercise Price on the terms set
            out in this Agreement.

      5.2   Immediately following the execution of this Agreement the Company
            shall deliver to the Lender a Warrant Certificate in respect of the
            Warrant Shares.

<PAGE>

      5.3   In the event of any capitalisation issue, rights issue, open offer,
            consolidation, sub-division or reduction or other variation of share
            capital by the Company the number of Warrant Shares and/or the
            Exercise Price in relation to each Warrant Share may, if the Board
            of the Company considers it appropriate or at the request of the
            Lender, be adjusted in such manner as the Auditors confirm in
            writing to be fair and reasonable.

      5.4   The Company shall promptly after any adjustment has been made
            pursuant to this clause give notice thereof to each Warrant Holder.

6     EXERCISE OF WARRANT

      6.1   The Warrant may be exercised by the Lender at any time during the
            Exercise Period.

      6.2   The Warrant shall be exercised by the Lender giving notice in
            writing to the Company intimating that he wishes to exercise the
            Warrant and specifying the number of Warrant Shares which he then
            wishes to subscribe for.

      6.3   Once lodged, an Exercise Notice shall be irrevocable save with the
            consent of the directors of the Company. An Exercise Notice that is
            completed and lodged otherwise than in accordance with this Clause 6
            shall be of no effect.

      6.4   On receipt of an Exercise Notice the Company shall, subject to
            receipt by the Company of:-

      (a)   an amount equal to the aggregate of the Exercise Price due in
            respect of the number of Warrant Shares specified in the Exercise
            Notice; and

      (b)   the Warrant Certificate;

      and subject to compliance by the Company with the terms of Clause 6.5,
      issue and allot to the Lender the number of Warrant Shares specified in
      the Exercise Notice as soon as reasonably practicable thereafter.

      6.5   The Company hereby unconditionally and irrevocably undertakes and
            confirms to the Lender that it shall, prior to the issue and
            allotment of any Warrant Shares pursuant to Clause 6.4 ensure that
            it has complied in all respects with the rules and regulations of
            the Securities and Exchange Commission and American Stock Exchange
            in order to ensure that the Warrant Shares allotted to the Lender
            are freely tradable and not restricted as at the date of issue. To
            the extent that it is not possible and the Warrant Shares so issued
            are restricted, the Company shall use its best efforts to clear the
            said restricted stock as soon as possible thereafter.

      6.6   In the event that the Lender serves an Exercise Notice in respect of
            some only of the Warrant Shares (the "EXERCISE SHARES") the Company
            shall at the time of issue and allotment of the Exercise Shares
            issue to the Lender a new Warrant Certificate in respect of the
            balance of Warrant Shares remaining available to the Lender under
            the Warrant.

7     REGISTER

      7.1   The Company shall keep a register of warrants (the "REGISTER") at
            its registered office for the time being in which shall be entered:-

<PAGE>

      (a)   the name and address of the Lender and any other holders from time
            to time of any warrants;

      (b)   the date at which the Lender and any other warrant holder is entered
            in the Register respect of the warrant standing in his name; and

      (c)   the serial number of each warrant certificate issued by the Company
            and the date of issue thereof.

      7.2   The Lender shall be entitled at all reasonable times during normal
            business hours to inspect and take copies of the Register.

8     LAPSE OF WARRANT

      8.1   Time shall be of the essence for the purposes of the exercise of the
            Warrant.

      8.2   To the extent not already exercised before the expiry of the
            Exercise Period, the Warrant shall automatically lapse on the expiry
            of the Exercise Period.

9     RANKING OF WARRANT SHARES

      9.1   Warrant Shares issued and allotted to the Lender pursuant to Clause
            6.4 will rank for all dividends or other distributions declared on
            the shares of common stock of US$0.10 each in the capital of the
            Company after the date of allotment of such shares (but not before
            such date) and otherwise pari passu in all respects with the shares
            of common stock of US$0.10 each in the capital of the Company in
            issue on the date of such allotment.

10    VARIATION OF RIGHTS

      10.1  All or any of the rights for the time being attached to the Warrant
            may from time to time (whether or not the Company is being wound up)
            be altered or abrogated with the consent in writing of the Company
            and with either the consent in writing of all warrant holders
            entitled to subscribe for not less than 50 per cent of the shares of
            common stock of US$0.10 each in the capital of the Company which are
            subject to outstanding warrants or with the sanction of an
            Extraordinary Resolution of the warrantholders.

11    LOST OR DAMAGED WARRANT CERTIFICATES

      11.1  If any Warrant Certificate is worn out or defaced then upon
            production of such certificate to the directors of the Company they
            may cancel the same and may issue a new certificate in lieu thereof.

      11.2  If any Warrant Certificate is lost or destroyed then upon proof
            thereof to the reasonable satisfaction of the directors of the
            Company (or in default of proof, on such indemnity as the directors
            of the Company may deem adequate, being given) a new certificate in
            lieu thereof may be given to the Lender free of charge (save as
            regards any payment pursuant to any such indemnity).

      11.3  An entry as to the issue of any new Warrant Certificate and
            indemnity (if any) shall be made in the Register.

12    COMPANY UNDERTAKINGS

<PAGE>

      12.1  The Company undertakes to the Lender that it shall throughout the
            Exercise Period keep available for issue sufficient authorised but
            unissued shares of common stock of US$0.10 each in the capital of
            the Company necessary to satisfy in full all subscription rights
            exercisable by the Lender pursuant to the Warrant.

      12.2  If an offer or invitation is made to all holders of shares of common
            stock of US$0.10 each in the capital of the Company to acquire the
            whole or any part of such shares and the Company becomes aware that
            as a result of such offer or invitation the right to cast a majority
            of votes which may ordinarily be cast at a general meeting of the
            Company has become or may become vested in the offeror and/or
            persons acting in concert with the offeror, the Company shall, so
            far as it is able, procure that a like offer or invitation is made
            or extended at the same time to the Lender as if the Warrant had
            been exercised in full and as if the Warrant Shares issued pursuant
            to such exercise had been issued immediately prior to the record
            date for such an offer or invitation.

      12.3  For so long as the Warrant shall remain exercisable by the Lender
            the Company shall send to the Lender a copy of every document sent
            to the holders of shares of common stock of US$0.10 each in the
            capital of the Company at the same time as it is sent to such
            holders.

13    NOTICE

      13.1  Any notice to be given under, or in connection with the matters
            contemplated by, this Agreement shall be in writing and signed by or
            on behalf of the party giving it and shall be served by delivering
            it personally or sending it by pre-paid recorded delivery or
            registered post or by facsimile to the address and for the attention
            of the relevant party set out below (or as otherwise notified by
            that party hereunder). Any such notice shall be deemed to have been
            received:-

      (a)   if delivered personally, at the time of delivery; and

      (b)   in the case of pre-paid recorded delivery or registered post, 48
            hours from the date of posting;

      (c)   in the case of fax, at the time of transmission;

      Provided that if deemed receipt occurs before 9am on a business day the
      notice shall be deemed to have been received at 9am on that day and if
      deemed receipt occurs after 5pm on a business day, or on a day which is
      not a business day, the notice shall be deemed to have been received at
      9am on the next business day. For the purpose of this Clause 13 "BUSINESS
      DAY" means a day, other than a Saturday or a Sunday, on which clearing
      banks are open for commercial business in London.

      13.2  The addresses and facsimile numbers of the parties for the purposes
            of this Clause 13 are:-

      Company:                 CanArgo Energy Corporation

      Address:                 P.O. Box 291, St Peter Port, Guernsey GY1 3RR

      For the attention of:    Dr David Robson

      Fax number:              01481 729982

<PAGE>

      Lender:                  CA Fiduciary Services Limited as Trustees of The
                               SP525A Settlement

      Address:                 PO Box 198, St. Peter Port, Guernsey, GY1 4HU

      Fax number:              01481 729726

      or such other address or facsimile number as may be notified in writing
      from time to time by the relevant party to the other party.

      13.3  For the avoidance of doubt notice given under this Agreement shall
            not be validly served if sent by e-mail.

14    FURTHER ASSURANCE

      The parties shall at their own cost do or procure the doing of all such
      acts and things and/or execute or procure the execution of all such
      documents as are reasonably required to give effect to the provisions of
      this Agreement.

15    ASSIGNMENT

      Neither party shall be entitled to assign in whole or in part any rights
      and/or obligations arising under this Agreement to a third party without
      the prior written consent of the other party.

16    ENTIRE AGREEMENT

      This Agreement constitutes the entire agreement between the parties with
      respect to the matters dealt with herein and supersedes any previous
      agreement between the parties in relation to such matters.

17    VARIATION

      No variation of this Agreement shall be valid or effective unless made by
      an instrument in writing signed by both of the parties.

18    WAIVER

      No waiver by either party of any of the requirements hereof or of any of
      its rights hereunder shall be effective unless given in writing and signed
      by or on behalf of that party and no forbearance, delay or indulgence by
      either party in enforcing the provisions of this Agreement shall prejudice
      or restrict the rights of that party nor shall any waiver by that party of
      any of the requirements hereof or any of its rights hereunder release the
      other from full performance of its remaining obligations stated herein.

19    SEVERABILITY

      Each provision of this Agreement shall be construed separately and (save
      as otherwise expressly provided herein) none of the provisions hereof
      shall limit or govern the extent, application or construction of any other
      of them and notwithstanding that any provision of this Agreement may prove
      to be illegal or unenforceable the remaining provisions of this Agreement
      shall continue in full force and effect.

<PAGE>

20    COUNTERPARTS

      This Agreement may be executed in any number of counterparts and by each
      of the parties on separate counterparts each of which when executed and
      delivered shall be deemed to be an original, but all the counterparts
      together shall constitute one and the same agreement.

21    LAW AND JURISDICTION

      21.1  This Agreement shall be governed by and construed in accordance with
            the law of England.

      21.2  Each party hereby submits to the non-exclusive jurisdiction of the
            Courts of England as regards any claim, dispute or matter arising
            out of or in connection with this Agreement and its implementation
            and effect.

IN WITNESS of which the parties have executed and delivered this document as a
deed on the date first before written.

<PAGE>

                                    SCHEDULE

                                     PART 1

                               WARRANT CERTIFICATE

CANARGO ENERGY CORPORATION (THE "COMPANY")

P.O. Box 291
Commerce House
Les Banques
St Peter Port
GUERNSEY
GY1 3RR

WARRANT REPRESENTING SUBSCRIPTION RIGHTS FOR SHARES OF COMMON STOCK OF PAR VALUE
OF US$0.10 IN THE CAPITAL OF THE COMPANY

This is to certify that C A Fiduciary Services Limited as Trustees of The SP525A
Settlement of PO Box 198, St Peter Port, Guernsey, GY1 4HU (the "HOLDER") is the
registered holder of a Warrant which entitles the holder to subscribe for
300,000 shares of common stock of par value of US$0.10 in the capital of the
Company fully paid (the "WARRANT SHARES") at a price of US$1.05 per Warrant
Share subject to the terms of the agreement between the Company and the Holder,
dated [ ]. Subject as aforesaid the Holder shall be entitled to subscribe for
the Warrant Shares upon exercise of the Warrant and may exercise the Warrant in
whole or in part and from time to time.

DATED

EXECUTED AND DELIVERED AS A DEED
by CANARGO ENERGY CORPORATION
acting by
/s/: D Robson.............................   Director
Dr David Robson...........................   Full Name
/s/: E A Landles..........................   Secretary
Elizabeth Anne Landles....................   Full Name

NOTE: NO TRANSFER OF ANY OR ALL OF THE SUBSCRIPTION RIGHTS REPRESENTED BY THIS
WARRANT WILL BE REGISTERED WITHOUT THE PRODUCTION OF THIS WARRANT OR AN
INDEMNITY SATISFACTORY TO THE COMPANY.

<PAGE>

                                     PART 2

                                 EXERCISE NOTICE

TO:         THE DIRECTORS

            CANARGO ENERGY CORPORATION (THE "COMPANY")

FROM:       C A FIDUCIARY SERVICES LIMITED, AS TRUSTEES OF THE SP525A SETTLEMENT
(THE "WARRANTHOLDER")

DATE:       [                 ] 200[ ]

1     I/WE, THE REGISTERED HOLDER(S) OF THIS WARRANT HEREBY:-

1.1   GIVE NOTICE OF MY/OUR WISH TO EXERCISE MY/OUR SUBSCRIPTION RIGHTS IN
      RESPECT [ ] SHARES OF COMMON STOCK OF PAR VALUE OF US$0.10 IN THE CAPITAL
      OF THE COMPANY (THE "WARRANT SHARES") IN ACCORDANCE WITH THE PARTICULARS
      BELOW;

1.2   CONFIRM THAT US$[ ] HAS BEEN TRANSFERRED TO THE BANK ACCOUNT NOTIFIED TO
      ME/US BY THE COMPANY BEING PAYMENT IN FULL AT A PRICE OF [ ] PER SHARE FOR
      THE TOTAL NUMBER OF WARRANT SHARES FOR WHICH I/WE WISH TO SUBSCRIBE;

1.3   REQUEST THAT ALL OF SUCH WARRANT SHARES BE REGISTERED IN MY/OUR NAME(S)
      AND AUTHORISE THE ENTRY OF MY/OUR NAME(S) IN THE REGISTER OF MEMBERS IN
      RESPECT THEREOF;

1.4   AUTHORISE THE DESPATCH OF THE CERTIFICATE IN RESPECT OF THE WARRANT SHARES
      TO BE ALLOTTED TO ME/US AND A WARRANT IN MY/OUR NAME(S) FOR ANY BALANCE OF
      MY/OUR SUBSCRIPTION RIGHTS REMAINING EXERCISABLE BY POST AT MY/OUR RISK TO
      THE ADDRESS SHOWN ABOVE.

............................                     ........................

............................                     ........................

SIGNATURE(S) OF REGISTERED WARRANTHOLDER(S)
        DATE(S)

<PAGE>

EXECUTED AND DELIVERED AS A DEED
by CANARGO ENERGY CORPORATION acting by
/s/: D Robson.............................   Director
Dr David Robson...........................   Full Name
/s/: E A Landles..........................   Secretary
Elizabeth Anne Landles....................   Full Name

EXECUTED AND DELIVERED AS A DEED
by  C A FIDUCIARY SERVICES LIMITED, AS TRUSTEES OF
THE SP525A SETTLEMENT
/s/: P Caldwell...........................
before this witness
/s/: W J Lavenne..........................   Witness
Wendy J Lavenne...........................   Full Name
Compass Point, Ville Baudu,...............   Address
Vale, Guernsey............................

<PAGE>

                           LOAN AND WARRANT AGREEMENT

                                     between

                           CANARGO ENERGY CORPORATION

                                       and

                 C A FIDUCIARY SERVICES LIMITED, AS TRUSTEES OF
                              THE SP525A SETTLEMENT

                 -----------------------------------------------

                 -----------------------------------------------

                            [MCGRIGORS GLASGOW LOGO]

                                  Pacific House
                              70 Wellington Street
                                     GLASGOW
                                     G2 6SB
                            Telephone: 0141 248 6677
                       Facsimile: 0141 204 1351 / 221 1390
                         E-Mail: enquiries@mcgrigors.com
                       Web Site: http://www.mcgrigors.com
                                    626093_1<PAGE>
                                                                   Exhibit 10.44
                      AGREEMENT 013.004 ON CRUDE OIL SALES
                       DATED 05 MAY 2004 (THE "AGREEMENT")

CONCLUDED BETWEEN NINOTSMINDA OIL COMPANY LIMITED AND PRIMROSE FINANCIAL GROUP
AS FOLLOWS:

1.   SELLER:

NINOTSMINDA OIL COMPANY LIMITED
22, STASICRATOUS
OLGA COURT
P.O.BOX 48
NICOSIA, CYPRUS

2.   BUYER:

PRIMROSE  FINANCIAL GROUP
OMAR HODGE BUILDING, WICKHAMS CAY, ROAD TOWN
TORTOLA
BRITISH VIRGIN ISLANDS

3.   CONTRACT PERIOD:

THIS AGREEMENT COMMENCES ON THE DATE HEREOF AND SHALL CONTINUE FOR THE PERIOD
STIPULATED HEREIN ("CONTRACT PERIOD"). THIRTY (30) DAYS PRIOR TO THE END OF THE
DELIVERY PERIOD AS DEFINED IN ARTICLE 4 HEREIN, THE PARTIES AGREE TO MEET TO
DISCUSS THE CONTINUATION OF THE AGREEMENT ON MUTUALLY ACCEPTABLE TERMS TO BE
AGREED AT THE TIME.

4.   QUANTITY:

THE TOTAL QUANTITY OF CRUDE OIL TO BE MADE AVAILABLE FOR SALE BY THE SELLER TO
THE BUYER OF THE SELLER'S SHARE OF CRUDE OIL PRODUCED UNDER THE NINOTSMINDA
PRODUCTION SHARING CONTRACT ("OIL") UNDER THE TERMS OF THIS AGREEMENT SHALL BE
84,000 (EIGHTY FOUR THOUSAND) METRIC TONNES + 10% ("CONTRACT QUANTITY")
COMMENCING IN MAY 2004 AND CONTINUING FOR A PERIOD OF 10 (TEN) CONSECUTIVE
MONTHS ("DELIVERY PERIOD"). THE AVERAGE MONTHLY QUANTITY OF OIL AVAILABLE FOR
SALE TO THE BUYER SHALL BE 8,400 (EIGHT THOUSAND FOUR HUNDRED) METRIC TONNES
("MONTHLY QUANTITY"). IF THE QUANTITY OF OIL MADE AVAILABLE TO THE BUYER IN ANY
MONTH IS LESS THAN THE MONTHLY QUANTITY, THE SELLER SHALL ENDEAVOUR TO MAKE AN
ADDITIONAL QUANTITY OF OIL AVAILABLE TO THE SELLER IN SUBSEQUENT MONTHS FROM ITS
SHARE OF PRODUCTION SO AS TO MAINTAIN THE AVERAGE MONTHLY QUANTITY DURING THE
DELIVERY PERIOD. IN THE EVENT THAT THE TOTAL QUANTITY OF OIL MADE AVAILABLE FOR
PURCHASE TO THE BUYER DURING THE DELIVERY PERIOD IS LESS THAN THE CONTRACT
QUANTITY, THE CONTRACT DELIVERY PERIOD SHALL BE EXTENDED FOR SUCH ADDITIONAL
PERIOD AS NECESSARY TO ALLOW THE CONTRACT QUANTITY TO BE MADE AVAILABLE TO THE
BUYER. BUT THE SELLER IS ONLY OBLIGED TO DELIVER OR MAKE AVAILABLE TO THE BUYER
ITS SHARE OF OIL ACTUALLY PRODUCED. IN THE EVENT THAT THE SELLER FAILS TO
PRODUCE THE CONTRACT QUANTITY THE SELLER SHALL HAVE NO LIABILITY TO THE BUYER AS
A RESULT OF THAT FAILURE OTHER THAN AS SET OUT HEREIN.

IN THE EVENT THE QUANTITY OF OIL PRODUCED IN ANY MONTH BY THE SELLER EXCEEDS THE
MONTHLY QUANTITY AND THE SELLER HAS MADE AVAILABLE TO THE BUYER THE AVERAGE
MONTHLY QUANTITY AS PROVIDED FOR IN THIS ARTICLE 4, THE AMOUNT OF OIL IN EXCESS
OF THE MONTHLY QUANTITY SHALL BE OFFERED FOR SALE TO THE BUYER ON A FIRST
PRIORITY BASIS AT THE THEN PREVAILING MARKET TERMS.

THE CONVERSION RATIO FOR METRIC TONNES: BARRELS SHALL BE DETERMINED FROM SAMPLES
TAKEN AT THE TIME OF DELIVERY.

5.   QUALITY:

OIL MADE AVAILABLE UNDER THIS AGREEMENT SHALL BE NINOTSMINDA CRUDE OIL OF NORMAL
EXPORT QUALITY WITH THE FOLLOWING GUARANTEED SPECIFICATION:

- DENSITY AT 20 degrees C       820 - 840 KG/CSM
- SULPHUR                       MAX 0,2 WT PCT
- WATER                         MAX 1.0 PCT

QUALITY OF OIL SHOULD COINCIDE WITH THE EXISTING NORMS. SELLER AND BUYER SHALL
MEET TO AGREE THE APPOINTMENT OF AN INDEPENDENT EXPERT LABORATORY, TO WHOM ANY
DISPUTES CONCERNING THE QUALITY OF THE OIL OR THE METHOD OF TESTING THEREOF
SHALL BE REFERRED AND BOTH PARTIES MUST ACCEPT THE DECISION OF THE EXPERT.

6.   DELIVERY:

ON A MONTHLY BASIS ON A DATE TO BE AGREED BETWEEN BUYER AND SELLER, SELLER SHALL
MAKE OIL AVAILABLE TO THE BUYER AT GEORGIAN OIL'S STORAGE RESERVOIRS AT SAMGORI
(NGDU) IN CAR TANKS PROVIDED BY THE BUYER ("DELIVERY POINT"). OIL SHALL BE
CONSIDERED DELIVERED AS THE OIL PASSES THE FILLING HOSE TO THE CAR TANKS. THE
SELLER, BUYER AND THE OPERATOR OF THE OIL STORAGE AND LOADING FACILITY WILL SIGN
THE RELATED DELIVERY ACT.

7.   PRICE:

THE PRICE IN US DOLLARS PER NET US BARREL AT THE DELIVERY POINT FOR OIL
DELIVERED DURING EACH MONTH SHALL BE EQUAL TO THE AVERAGE OF THE MEAN OF THREE
QUOTATIONS IN THE PLATTS CRUDE OIL MARKETWIRE FOR BRENT DATED QUOTATIONS MINUS A
DISCOUNT IN US DOLLARS PER NET US BARREL ESTABLISHED IN ACCORDANCE WITH THE
FOLLOWING FORMULA:

<TABLE>
<CAPTION>

                         DATED BRENT (US$/BBL)                     DISCOUNT (US$/BBL)
                         ---------------------                     ------------------
                         <S>                                       <C>
                            LESS THAN 15.00                               6.00
                             15.01 - 20.00                                6.50
                             20.01 - 25.00                                7.00
                           GREATER THAN 25.01                             7.50
</TABLE>

                                       1
<PAGE>

IN THE EVENT THAT THE MONTHLY QUANTITY IS LESS THAN 7,000 (SEVEN THOUSAND)
METRIC TONNES, THE PRICE SHALL BE EQUAL TO THE AVERAGE OF THE MEAN OF THREE
QUOTATIONS IN THE PLATTS CRUDE OIL MARKET WIRE FOR URALS [MED] QUOTATIONS MINUS
A DISCOUNT IN US DOLLARS PER NET US BARREL ESTABLISHED IN ACCORDANCE WITH THE
FOLLOWING FORMULA:

<TABLE>
<CAPTION>

                          URALS MED (US$/BBL)                      DISCOUNT (US$/BBL)
                          -------------------                      ------------------
                          <S>                                      <C>
                            LESS THAN 15.00                               5.50
                             15.01 - 20.00                                6.00
                             20.01 - 25.00                                6.50
                           GREATER THAN 25.01                             7.00
</TABLE>

IN THE CASE OF EXPORT SALES, THE APPLICABLE QUOTATIONS SHALL BE THE THREE
PUBLISHED RELEVANT QUOTATIONS FOR THREE CONSECUTIVE TRADING DAYS TO BE AGREED AT
THE TIME THE EXPORT CONTRACT IS SIGNED AND MUST BE WITHIN THE PERIOD BETWEEN THE
FIFTH AND FIFTEENTH DAY FOLLOWING COMPLETION OF DELIVERY OF OIL.

IN THE CASE OF LOCAL SALES WITHIN GEORGIA, THE APPLICABLE QUOTATIONS SHALL BE
THE THREE RELEVANT QUOTATIONS FOR THE THIRD, FOURTH AND FIFTH DAYS FOLLOWING THE
SIGNING OF THE CONTRACT. IF ANY OF THE QUOTATION DAYS FALLS ON A SATURDAY OR
SUNDAY OR OTHER NON-TRADING DAY, THE NEAREST EARLIER QUOTATIONS SHALL APPLY.

THE PRICE HAS BEEN CALCULATED EXCLUSIVE OF VAT, HOWEVER VAT IS PAYABLE ON SALES
UNDER THE AGREEMENT AND THIS WILL BE LEVIED AT THE EFFECTIVE RATE CURRENT IN THE
TERRITORY OF GEORGIA AT THE TIME AND SHALL BE PAYABLE BY THE BUYER TO THE
SELLER.

8.   SECURITY FOR PAYMENT:

AS SECURITY FOR PAYMENT AND HAVING THE OPTION TO LIFT OIL ON A MONTHLY BASIS
DURING THE CONTRACT PERIOD THE BUYER MADE DEPOSIT OF TWO MILLION THREE HUNDERED
THOUSAND US DOLLARS (USD 2,300,000) ("SECURITY") WITH THE SELLER:

THE SECURITY WILL BE RETAINED BY THE SELLER FOR ITS OWN USE AND ACCOUNT UNTIL
1ST MAY 2005 AND WILL BE REPAID TO THE BUYER AFTER THE END OF THE DELIVERY
PERIOD THROUGH THE DELIVERY OF AN ADDITIONAL QUANTITY OF OIL TO THE VALUE OF THE
SECURITY AT THE PRICE SET OUT IN THE AGREEMENT AND AT THE RATE OF THE SELLER'S
SHARE OF MONTHLY PRODUCTION. THIS AGREEMENT SHALL REMAIN IN FORCE UNTIL THE
SECURITY IS FULLY REPAID THROUGH THE DELIVERY OF OIL OR OTHER MEANS AS PROVIDED
FOR IN ARTICLE 13 HEREIN.

9.   PAYMENT:

THE BUYER SHALL PAY OR CAUSE TO BE PAID INTO SELLER'S NOMINATED BANK ACCOUNT:

1.   IN THE CASE OF LOCAL SALES, VALUE IN FULL PRIOR TO COMMENCEMENT OF DELIVERY
     OF OIL CALCULATED IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE 7 ABOVE IN
     US DOLLARS NET CASH, WITHOUT WITHOLD, OFFSET, COUNTERCLAIM OR DEDUCTION
     WHATSOEVER;

OR

2.   IN THE CASE OF EXPORT SALES, A PROVISIONAL PAYMENT PRIOR TO COMMENCEMENT OF
     DELIVERY OF OIL BASED ON THE RELEVANT MARKER PRICE ON THE DATE THE EXPORT
     CONTRACT IS SIGNED LESS THE DISCOUNT IN US DOLLARS NET CASH, WITHOUT
     WITHOLD, OFFSET, COUNTERCLAIM OR DEDUCTION WHATSOEVER. THE FINAL PRICE
     SHALL BE ESTABLISHED IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE 7 ABOVE
     AND ANY UNDER PAYMENTS OR OVER PAYMENTS AS APPROPRIATE IN US DOLLARS NET
     CASH, WITHOUT WITHOLD, OFFSET, COUNTERCLAIM OR DEDUCTION WHATSOEVER SHALL
     BE PAID BY THE BUYER OR THE SELLER AS APPROPRIATE.

10.  RISKS AND PROPERTY:

NOTWITHSTANDING ANYTHING HEREIN EXPRESSLY OR BY IMPLICATION TO THE CONTRARY, THE
RISK AND PROPERTY IN THE OIL DELIVERED HEREUNDER SHALL PASS TO THE BUYER AT THE
DELIVERY POINT.

11.  LAW AND JURISDICTION:

THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH ENGLISH LAW
AND THE PARTIES SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE LONDON HIGH COURT
WITHOUT RECOURSE TO ARBITRATION.

IN THE EVENT THE BUYER IS UNABLE TO PURCHASE OIL PRODUCED DURING ANY MONTH, THE
BUYER SHALL NOTIFY THE SELLER BY 1ST DAY OF THE MONTH IN WHICH THE OIL IS TO BE
LIFTED ("ELECTION DATE") OF SUCH INABILITY TO PERFORM AND ON RECEIVING SUCH
NOTICE THE SELLER SHALL BE ENTITLED TO SELL THE MONTHLY QUANTITY AT ITS
DISCRETION. SHOULD THE SELLER RECEIVE NO NOTIFICATION FROM THE BUYER BY THE
ELECTION DATE THEN IT SHALL BE DEEMED THAT THE BUYER HAS ELECTED TO LIFT THE
MONTHLY QUANTITY AND PAYMENT WILL BE DUE IN ACCORDANCE WITH THE PROVISIONS OF
ARTICLE 10 HEREIN. HOWEVR SELLER SHALL BE ENTITLED TO TERMINATE THIS AGREEMENT
IN THE EVENT THAT BUYER FAILS TO MAINTAIN ITS PAYMENT OBLIGATIONS UNDER THIS
AGREEMENT FOR OIL DELIVERED BY THE SELLER AND RECEIVED BY THE BUYER OR TO COMPLY
WITH THE OTHER PROVISIONS OF THIS AGREEMENT. SUCH TERMINATION SHALL BE WITHOUT
PREJUDICE TO THE SELLER'S OTHER RIGHTS HEREUNDER.

12.  FORCE MAJEURE:

IF EITHER PARTY IS RENDERED UNABLE TO PERFORM FULLY OR IN PART ANY OBLIGATION
UNDER THIS AGREEMENT, EXCEPT IN RELATION TO OBLIGATIONS TO MAKE PAYMENTS DUE
UNDER THIS AGREEMENT, THEN TO THE EXTENT THAT SUCH INABILITY ARISES FROM A CAUSE
OR CAUSES BEYOND THAT PARTY'S CONTROL AND UPON SUCH PARTY PROMPTLY GIVING
WRITTEN NOTICE TO THE OTHER PARTY OF SUCH CAUSE(S), NEITHER PARTY SHALL

                                       2
<PAGE>

BE LIABLE TO THE OTHER IN DAMAGES OR OTHERWISE AND THE TIME FOR PERFORMANCE OF
THE AFFECTED OBLIGATION SHALL BE EXTENDED DURING AND FOR THE PERIOD OF INABILITY
SO CAUSED, UP TO A MAXIMUM OF THIRTY (30) CALENDAR DAYS.

SHOULD SUCH PERIOD OF INABILITY CONTINUE IN EXCESS OF THIRTY (30) CALENDAR DAYS,
EITHER PARTY SHALL HAVE THE RIGHT TO TERMINATE THIS AGREEMENT BY WRITTEN NOTICE
TO THE OTHER PARTY, IN WHICH CASE NEITHER PARTY SHALL BE RESPONSIBLE FOR FURTHER
PERFORMANCE NOR LIABLE IN ANY WAY TO EACH OTHER, PROVIDED THE SECURITY PAYMENT
IN THE AMOUNT OUTSTANDING AT THE TIME SHALL BE RETURNED WITHIN FIVE (5) BANKING
DAYS BY THE SELLER.

THE TERM CAUSE(S) BEYOND THAT PARTY'S CONTROL USED HEREIN SHALL INCLUDE (BUT
WITHOUT LIMITING THE GENERALITY OF SUCH TERM): AN ACT OF GOD, WAR (DECLARED OR
UNDECLARED), MILITARY OPERATIONS, BLOCKADE, REVOLUTION, DISTURBANCE, TRADE
RESTRICTION, ACTION BY ANY GOVERNMENT OR GOVERNMENTAL OR CIVIL OR MILITARY
AUTHORITY, EMBARGO, STRIKE, LOCK-OUT OR LABOUR DISPUTE, FIRE, ICE CONDITIONS, OR
ANY OTHER CAUSE OF A SIMILAR NATURE AS DESCRIBED HEREIN BEYOND THAT PARTY'S
CONTROL.

13.  OTHER TERMS:

ON THE BASIS OF THE BUYER'S WRITTEN REQUEST, THE SELLER WILL ASSIST THE BUYER TO
EXPORT OIL THROUGH PROPERLY EXECUTED OIL SALES CONTRACTS WITH A THIRD PARTY ON
THE SAME TERMS AS STIPULATED IN THIS AGREEMENT PROVIDING THIS IS DONE IN
ACCORDANCE WITH GEORGIAN LEGISLATION AND THE BUYER INDEMNIFYS THE SELLER FROM
AND AGAINST ANY AND ALL CLAIMS OF ANY KIND, LIABILITIES INCLUDING BUT NOT
LIMITED TO VAT PAYMENTS, AND EXPENSES WHICH MAY EMERGE AS A RESULT OF THE SELLER
ENTERING INTO SALES CONTRACTS WITH A THIRD PARTY AT THE REQUEST OF THE BUYER.
SUCH INDEMNIFICATION SHALL BE COVERED FROM THE SECURITY PROVIDED BY THE ARTICLE
8 OF THIS AGREEMENT.

IN THE EVENT THE SELLER BECOMES UNABLE TO SUPPLY THE BUYER WITH OIL OR RETURN
ANY REMAINING UNPAID AMOUNT OF THE SECURITY IN ACCORDANCE WITH THE TIME TERM OF
THE AGREEMENT A PENALTY IN THE AMOUNT OF TWENTY (20) PER CENT PER ANNUM I.E.
0.0548% PER EACH DAY DELAY SHALL APPLY.

14.  ENTIRE AGREEMENT

THIS AGREEMENT CONTAINS THE ENTIRE AGREEMENT OF BOTH PARTIES AND IT CANNOT BE
MODIFIED UNLESS IN WRITING.

15.  BANK DETAILS:

US DOLLAR ACCOUNT:

<TABLE>
<S>                                  <C>
BANK:                                HSBC BANK INTERNATIONAL LIMITED
                                     PO BOX 315, ST PETER PORT
                                     GUERNSEY GY1 3JQ
                                     CHANNEL ISLANDS
SWIFT:                               MIDLJESH
ACCOUNT CURRENCY                     US DOLLARS
ACCOUNT NAME:                        NINOTSMINDA OIL COMPANY USD ACCOUNT
ACCOUNT NO.:                         011 645496 361
COVER THROUGH:                       BANKERS TRUST COMPANY
                                     1 BANKERS TRUST PLAZA, LIBERTY STREET
                                     NEW YORK, NY 10006
                                     A/C NO.: 04082437
                                     SPECIAL INSTRUCTIONS: BKTRUS33
</TABLE>

16.  SIGNATURES:

SIGNED ON 05 MAY 2004.

FOR NINOTSMINDA OIL COMPANY:                       FOR PRIMROSE FINANCIAL GROUP:

/s/ Zaza Gorgadze                                  /s/ Abraham Nanikashvili
----------------------------                       -----------------------------
ZAZA GORGADZE                                      ABRAHAM NANIKASHVILI

                                       3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00066-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00066-of-00352.parquet"}]]