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 *
  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, 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,  
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
 
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)
Date Exercisable Expiration Date Title Amount or Number of Shares
Warrant to Purchase Common Stock 12/28/2006 06/28/2008 Common stock 12,500,000 $ 1 D  
Note Convertible into Common Stock 12/28/2006 06/28/2010 Common stock 10,000,000 $ 1 D  
Warrant to Purchase Common Stock 06/28/2006   (2) Common stock 5,000,000 $ 1 D  
Note Convertible into Common Stock 06/28/2006 09/01/2009 Common stock 5,000,000 $ 1 D  

Reporting Owners

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

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.
 
Remarks:
Chasm Lake Management Services, LLC d/b/a Persistency Capital is the investment manager of Persistency and of Persistency Private Equity
Limited.  Andrew Morris is the managing director of Chasm Lake Management Services LLC, a director of Persistency, and an authorized
signatory for Persistency Private Equity Limited.  Each of the joint filers 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 any one of the
joint filers is the beneficial owner of such securities for purposes of Section 16 or for any other purpose.

Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, See Instruction 6 for procedure.

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