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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                  SCHEDULE 13G
                               (Amendment No. 1)*

                    Under the Securities Exchange Act of 1934


                           Canargo Energy Corporation
--------------------------------------------------------------------------------
                                (Name of Issuer)


                                  Common Stock
--------------------------------------------------------------------------------
                         (Title of Class of Securities)


                                    137225108
--------------------------------------------------------------------------------
                                 (CUSIP Number)


                                December 31, 2006
--------------------------------------------------------------------------------
             (Date of Event Which Requires Filing of this Statement)


     Check the appropriate box to designate the rule pursuant to which this
Schedule is filed:

          [_]  Rule 13d-1(b)

          [X]  Rule 13d-1(c)

          [_]  Rule 13d-1(d)

----------
*    The  remainder of this cover page shall be filled out for a reporting
     person's initial filing on this form with respect to the subject class of
     securities, and for any subsequent amendment containing information which
     would alter the disclosures provided in a prior cover page.

     The  information  required in the remainder of this cover page shall not be
deemed to be "filed"  for the purpose of Section 18 of the  Securities  Exchange
Act of 1934, as amended ("Act") or otherwise  subject to the liabilities of that
section  of the Act but  shall be  subject  to all other  provisions  of the Act
(however, see the Notes).



CUSIP No. 137225108
          ---------------------


1.   NAME OF REPORTING PERSONS
     I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

     Persistency

2.   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
                                                                 (a)  [_]
                                                                 (b)  [X]

3.   SEC USE ONLY



4.   CITIZENSHIP OR PLACE OF ORGANIZATION

     Cayman Islands, B.W.I.

NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

5.   SOLE VOTING POWER

     0

6.   SHARED VOTING POWER

     27,756,600

7.   SOLE DISPOSITIVE POWER

     0

8.   SHARED DISPOSITIVE POWER

     27,756,600

9.   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

     27,756,600

10.  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
     SHARES (SEE INSTRUCTIONS)

                                                                      [_]

11.  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

     10.49%

12.  TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

     CO

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


CUSIP No. 137225108
          ---------------------


1.   NAME OF REPORTING PERSONS
     I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

     Persistency Capital, LLC (1)

2.   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
                                                                 (a)  [_]
                                                                 (b)  [X]

3.   SEC USE ONLY



4.   CITIZENSHIP OR PLACE OF ORGANIZATION

     Delaware, U.S.A.

NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

5.   SOLE VOTING POWER

     0

6.   SHARED VOTING POWER

     28,256,600

7.   SOLE DISPOSITIVE POWER

     0

8.   SHARED DISPOSITIVE POWER

     28,256,600

9.   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

     28,256,600

10.  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
     SHARES (SEE INSTRUCTIONS)

                                                                      [_]

11.  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

     10.68%

12.  TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

     CO
----------
(1)  Persistency Capital, LLC may be deemed to be the beneficial owner of such
     securities by virtue of its role as the investment manager of Persistency
     and the investment manager to other investment funds which own such
     securities. Persistency Capital, LLC has replaced Chasm Lake Management
     Services as the investment manager of Persistency which had been reported
     in the Schedule 13G filed on July 7, 2006. In addition, Persistency
     Capital, LLC, has replaced Chasm Lake Management Services as the investment
     manager of certain other investment funds which own securities of the
     Issuer and which had been reported in the Schedule 13G filed on July 7,
     2006.
--------------------------------------------------------------------------------



CUSIP No. 137225108
          ---------------------


1.   NAME OF REPORTING PERSONS
     I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

     Andrew Morris (2)

2.   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
                                                                 (a)  [_]
                                                                 (b)  [X]

3.   SEC USE ONLY



4.   CITIZENSHIP OR PLACE OF ORGANIZATION

     United Kingdom

NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

5.   SOLE VOTING POWER

     32,500

6.   SHARED VOTING POWER

     28,256,600

7.   SOLE DISPOSITIVE POWER

     32,500

8.   SHARED DISPOSITIVE POWER

     28,256,600

9.   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

     28,289,100

10.  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
     SHARES (SEE INSTRUCTIONS)

                                                                      [_]

11.  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

     10.69%

12.  TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

     IN

(2)  Mr. Morris may be deemed to be the beneficial owner of the securities
     reported herein by virtue of his role as Managing Member of Persistency
     Capital, LLC.
--------------------------------------------------------------------------------


CUSIP No. 137225108
          ---------------------

Item 1(a).  Name of Issuer:

            Canargo Energy Corporation
            --------------------------------------------------------------------

      (b).  Address of Issuer's Principal Executive Offices:

            P.O. Box 291, St. Peter Port
            Guernsey, GY1 3RR, British Isles
            --------------------------------------------------------------------

Item 2(a).  Names of Persons Filing:

            Persistency
            Persistency Capital, LLC
            Andrew Morris
            --------------------------------------------------------------------

      (b).  Address of Principal Business Office, or if None, Residence:

            Persistency
            PO Box 309
            Ugland House, South Church Street
            George Town, Cayman Islands
            British West Indies

            Persistency Capital, LLC
            850 7th Avenue
            Suite 701
            New York, New York 10019
            U.S.A.

            Andrew Morris
            c/o Persistency Capital, LLC
            850 7th Avenue
            Suite 701
            New York, New York 10019
            U.S.A.
            --------------------------------------------------------------------

      (c).  Citizenship:

            Persistency - George Town, Cayman Islands B.W.I.

            Persistency Capital, LLC - Delaware, U.S.A.

            Andrew Morris - United Kingdom
            --------------------------------------------------------------------

      (d).  Title of Class of Securities:


            Common Stock
            --------------------------------------------------------------------

      (e).  CUSIP Number:

            137225108
            --------------------------------------------------------------------

Item 3.     If This Statement is filed pursuant to ss.240.13d-1(b) or
            240.13d-2(b), or (c), check whether the person filing is a:

     (a)  [_] Broker or dealer registered under Section 15 of the Exchange Act
              (15 U.S.C. 78c).

     (b)  [_] Bank as defined in Section 3(a)(6) of the Exchange Act (15
              U.S.C. 78c).

     (c)  [_] Insurance  company as defined in Section 3(a)(19) of the Exchange
              Act (15 U.S.C. 78c).

     (d)  [_] Investment  company  registered under Section 8 of the Investment
              Company Act of 1940 (15 U.S.C. 80a-8).

     (e)  [_] An investment adviser in accordance with s.240.13d-1(b)(1)(ii)(E);

     (f)  [_] An employee  benefit plan or endowment  fund in  accordance  with
              s.240.13d-1(b)(1)(ii)(F);

     (g)  [_] A parent  holding  company or control  person in accordance  with
              Rule 13d-1(b)(1)(ii)(G);

     (h)  [_] A savings  association  as defined in Section 3(b) of the Federal
              Deposit Insurance Act (12 U.S.C.1813);

     (i)  [_] A  church  plan  that  is  excluded  from  the  definition  of an
              investment  company  under  Section  3(c)(14)  of the  Investment
              Company Act of 1940 (15 U.S.C. 80a-3);

     (j)  [_] Group, in accordance with s.240.13d-1(b)(1)(ii)(J).

Item 4.  Ownership.

     Provide the following information regarding the aggregate number and
percentage of the class of securities of the issuer identified in Item 1.

     (a)  Amount beneficially owned:

          Persistency - 27,756,600

          Persistency Capital, LLC - 28,256,600

          Andrew Morris - 28,289,100
          ----------------------------------------------------------------------

     (b)  Percent of class:

          Persistency - 10.49%

          Persistency Capital, LLC - 10.68%

          Andrew Morris - 10.69%
          ----------------------------------------------------------------------

     (c)  Number of shares as to which the person has:

          Persistency
          -----------

          (i)   Sole power to vote or to direct the vote               0
                                                          ---------------------,

          (ii)  Shared power to vote or to direct the vote    27,756,600
                                                          ---------------------,

          (iii) Sole power to dispose or to direct the                 0
                disposition of                            ---------------------,

          (iv)  Shared power to dispose or to direct the      27,756,600
                disposition of                            ---------------------.

          Persistency Capital, LLC
          ------------------------

          (i)   Sole power to vote or to direct the vote               0
                                                          ---------------------,


          (ii)  Shared power to vote or to direct the vote    28,256,600
                                                          ---------------------,


          (iii) Sole power to dispose or to direct the                 0
                disposition of                            ---------------------,


          (iv)  Shared power to dispose or to direct the      28,256,600
                disposition of                            ---------------------.

          Andrew Morris
          -------------

          (i)   Sole power to vote or to direct the vote          32,500
                                                          ---------------------,


          (ii)  Shared power to vote or to direct the vote    28,256,600
                                                          ---------------------,


          (iii) Sole power to dispose or to direct the             32,500
                disposition of                            ---------------------,


          (iv)  Shared power to dispose or to direct the       28,256,600
                disposition of                            ---------------------.

Item 5.  Ownership of Five Percent or Less of a Class.

     If this statement is being filed to report the fact that as of the date
hereof the reporting person has ceased to be the beneficial owner of more than
five percent of the class of securities, check the following [].

          Not applicable.
          ----------------------------------------------------------------------

Item 6.  Ownership of More Than Five Percent on Behalf of Another Person.

     If any other person is known to have the right to receive or the power to
direct the receipt of dividends from, or the proceeds from the sale of, such
securities, a statement to that effect should be included in response to this
item and, if such interest relates to more than five percent of the class, such
person should be identified.  A listing of the shareholders of an investment
company registered under the Investment Company Act of 1940 or the beneficiaries
of employee benefit plan, pension fund or endowment fund is not required.

          Not applicable.
          ----------------------------------------------------------------------

Item 7.  Identification and Classification of the Subsidiary Which Acquired the
         Security Being Reported on by the Parent Holding Company or Control
         Person.

     If a parent holding company or Control person has filed this schedule,
pursuant to Rule 13d-1(b)(1)(ii)(G), so indicate under Item 3(g) and attach an
exhibit stating the identity and the Item 3 classification of the relevant
subsidiary.  If a parent holding company or control person has filed this
schedule pursuant to Rule 13d-1(c) or Rule 13d-1(d), attach an exhibit stating
the identification of the relevant subsidiary.

          Not applicable.
          ----------------------------------------------------------------------

Item 8.  Identification and Classification of Members of the Group.

     If a group has filed this schedule pursuant to s.240.13d-1(b)(1)(ii)(J), so
indicate under Item 3(j) and attach an exhibit stating the identity and Item 3
classification of each member of the group. If a group has filed this schedule
pursuant to s.240.13d-1(c) or s.240.13d-1(d), attach an exhibit stating the
identity of each member of the group.

          Not applicable.
          ----------------------------------------------------------------------

Item 9.  Notice of Dissolution of Group.

     Notice of dissolution of a group may be furnished as an exhibit stating the
date of the dissolution and that all further filings with respect to
transactions in the security reported on will be filed, if required, by members
of the group, in their individual capacity.  See Item 5.

          Not applicable.
          ----------------------------------------------------------------------

Item 10.  Certification.

          By signing below I certify that, to the best of my knowledge and
          belief, the securities referred to above were not acquired and are not
          held for the purpose of or with the effect of changing or influencing
          the control of the issuer of the securities and were not acquired and
          are not held in connection with or as a participant in any transaction
          having such purpose or effect.



                                    SIGNATURE

     After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.


Date: February 14, 2007

                                      Persistency*

                                      By: /s/ Andrew Morris
                                      -------------------------------
                                      Name:  Andrew Morris
                                      Title:  Authorized signatory


                                      Persistency Capital, LLC*

                                      By: /s/ Andrew Morris
                                      -------------------------------
                                      Name:  Andrew Morris
                                      Title: Managing Member


                                      /s/ Andrew Morris*
                                      -------------------------------
                                      Andrew Morris




* The Reporting Persons disclaim beneficial ownership in the Common Stock,
except to the extent of his pecuniary interest therein.

The original statement shall be signed by each person on whose behalf the
statement is filed or his authorized representative.  If the statement is
signed on behalf of a person by his authorized representative other than an
executive officer or general partner of the filing person, evidence of the
representative's authority to sign on behalf of such person shall be filed
with this statement, provided, however, that a power of attorney, for this
purpose which is already on file with the Commission may be incorporated by
reference.  The name and any title of each person who signs the statement shall
be typed or printed beneath his signature.

Note.  Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See s.240.13d-7 for other
parties for whom copies are to be sent.

Attention.  Intentional misstatements or omissions of fact constitute federal
criminal violations (see 18 U.S.C. 1001).



                                                              Exhibit A


                                    AGREEMENT

The undersigned agree that this Schedule 13G Amendment No. 1 dated February 14,
2007 relating to the Common Stock of Canargo Energy Corporation, shall be filed
on behalf of the undersigned.


                                                Persistency

                                                By: /s/ Andrew Morris
                                                -------------------------------
                                                Name:  Andrew Morris
                                                Title:  Authorized signatory


                                                Persistency Capital, LLC

                                                By: /s/ Andrew Morris
                                                -------------------------------
                                                Name:  Andrew Morris
                                                Title: Managing Member


                                                /s/ Andrew Morris
                                                -------------------------------
                                                Andrew Morris

SK 03939 0001 747720