Edgar Filing: CANARGO ENERGY CORP

Ownership Submission

FORM 3

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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(Print or Type Responses)

1. Name and Address of Reporting Person ^*

Â PERSISTENCY

2. Date of Event Requiring Statement (Month/Day/Year)
10/28/2006

3. Issuer Name and Ticker or Trading Symbol
CANARGO ENERGY CORP [CNR]

(Last)

(First)

(Middle)

PO BOX 309,Â GEORGE TOWN, CAYMAN ISLANDS

4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

_____ Director	__X__ 10% Owner
_____ Officer (give title below)	_____ Other (specify below)

5. If Amendment, Date Original Filed(Month/Day/Year)

(Street)

BRITISH WEST INDIES,Â Â

6. Individual or Joint/Group Filing(Check Applicable Line)
___ Form filed by One Reporting Person
_X_ Form filed by More than One Reporting Person

(City)

(State)

(Zip)

Table I - Non-Derivative Securities Beneficially Owned

1.Title of Security (Instr. 4)	2. Amount of Securities Beneficially Owned (Instr. 4)	3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	4. Nature of Indirect Beneficial Ownership (Instr. 5)
Common Stock, par value $0.10 per share	256,600	D	Â
Common Stock, par value $0.10 per share	500,000	I ⁽¹⁾	Held by Persistency Private Equity Limited.
Common Stock, par value $0.10 per share	32,500	I ⁽¹⁾	Held by Andrew Morris.

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.			SEC 1473 (7-02)
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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 4)	2. Date Exercisable and Expiration Date (Month/Day/Year)		3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)		4. Conversion or Exercise Price of Derivative Security	5. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
1. Title of Derivative Security (Instr. 4)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	4. Conversion or Exercise Price of Derivative Security		6. Nature of Indirect Beneficial Ownership (Instr. 5)
Warrant to Purchase Common Stock	12/28/2006	06/28/2008	Common stock	12,500,000	$ 1	D	Â
Note Convertible into Common Stock	12/28/2006	06/28/2010	Common stock	10,000,000	$ 1	D	Â
Warrant to Purchase Common Stock	06/28/2006	Â ⁽²⁾	Common stock	5,000,000	$ 1	D	Â
Note Convertible into Common Stock	06/28/2006	09/01/2009	Common stock	5,000,000	$ 1	D	Â

Reporting Owners

Reporting Owner Name / Address	Relationships
Reporting Owner Name / Address	Director	10% Owner	Officer	Other
PERSISTENCY PO BOX 309 GEORGE TOWN, CAYMAN ISLANDS BRITISH WEST INDIESÂ	Â	Â X	Â	Â
Chasm Lake Management Services, LLC 850 7TH AVENUE, SUITE 701 NEW YORK,Â NYÂ 10019	Â	Â X	Â	Â
Morris Andrew 850 7TH AVENUE, SUITE 701 NEW YORK,Â NYÂ 10019	Â	Â X	Â	Â
Persistency Private Equity LTD 57/63 LINE WALL ROAD GIBRALTARÂ	Â	Â X	Â	Â

Signatures

/s/ Andrew J. Morris, Director of Persistency		11/03/2006
^**Signature of Reporting Person		Date
/s/ Andrew J. Morris, Managing Director of Chasm Lake Management Services, LLC d/b/a Persistency Capital		11/03/2006
^**Signature of Reporting Person		Date
/s/ Andrew J. Morris		11/03/2006
^**Signature of Reporting Person		Date
/s/ Andrew J. Morris, Authorized Signatory for Persistency Private Equity Limited		11/03/2006
^**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 5(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	The reporting person disclaims beneficial ownership of the reported securities except to the extent of its pecuniary interest therein, and this report shall not be deemed an admission that the reporting person is the beneficial owner of such securities for purposes of Section 16 or for any other purpose.
(2)	The expiration date of these warrants is provided for in the Warrant certificate, which provides for alternative expiration dates based on the fulfillment of certain productivity targets, the occurrence of certain business reorganization events, the exercise of other CanArgo warrants, and/or the extension of the exercise period by CanArgo's Board of Directors.
Â Remarks: ChasmÂ LakeÂ ManagementÂ Services,Â LLCÂ d/b/aÂ PersistencyÂ CapitalÂ isÂ theÂ investmentÂ managerÂ ofÂ PersistencyÂ andÂ ofÂ PersistencyÂ PrivateÂ Equity Limited.Â Â AndrewÂ MorrisÂ isÂ theÂ managingÂ directorÂ ofÂ ChasmÂ LakeÂ ManagementÂ ServicesÂ LLC,Â aÂ directorÂ ofÂ Persistency,Â andÂ anÂ authorized signatoryÂ forÂ PersistencyÂ PrivateÂ EquityÂ Limited.Â Â EachÂ ofÂ theÂ jointÂ filersÂ disclaimsÂ beneficialÂ ownershipÂ ofÂ theÂ reportedÂ securities exceptÂ toÂ theÂ extentÂ ofÂ itsÂ pecuniaryÂ interestÂ therein,Â andÂ thisÂ reportÂ shallÂ notÂ beÂ deemedÂ anÂ admissionÂ thatÂ anyÂ oneÂ ofÂ the jointÂ filersÂ isÂ theÂ beneficialÂ ownerÂ ofÂ suchÂ securitiesÂ forÂ purposesÂ ofÂ SectionÂ 16Â orÂ forÂ anyÂ otherÂ purpose.

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