TERMINATION AGREEMENT RELATING TO THE FARM-IN AGREEMENT COVERING THE M11 WELL ON THE MANAVI CRETACEOUS PROSPECT WITHIN THE NINOTSMINDA PSC AREA

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                                                                   EXHIBIT 10.36

                              TERMINATION AGREEMENT

RELATING TO THE FARM-IN AGREEMENT COVERING THE M11 WELL ON THE MANAVI CRETACEOUS

                    PROSPECT WITHIN THE NINOTSMINDA PSC AREA

BETWEEN:

NINOTSMINDA OIL COMPANY LIMITED, a company organised and existing under the laws

of Cyprus ("NOC"), and

GEORGIAN BRITISH OIL SERVICES COMPANY LIMITED, a company organised and existing

under the laws of Georgia ("GBOSC"), and

CANARGO ENERGY CORPORATION, a corporation organised and existing under the laws

of Delaware, USA ("CanArgo")

WHERAS:

A.      On 7th September 2003, NOC and GBOSC entered into a Farm-in Agreement

       covering: the M11 well on the Manavi Cretaceous prospect within the

       Ninotsminda PSC area (the "Agreement"), and

B.      CanArgo is the parent company of NOC and NOC is a wholly owned subsidiary

       of CanArgo, and

C.      GBOSC and NOC now desire to terminate the Agreement on mutually

        acceptable terms, and CanArgo wishes NOC to do so.

NOW THERFORE IT IS HEARBY AGREED AS FOLLOWS:

1.   The Agreement shall be terminated, and all rights and obligations of NOC and

    GBOSC to each other shall cease immediately upon receipt by GBOSC (or its

    named nominee) of a share ce