CALGARY, April 3 /CNW/ - Connacher Oil and Gas Limited (CLL-TSX)
announces today that its bitumen production rate surpassed 7,000 barrels per
day at its Great Divide Pod One steam-assisted gravity drainage ("SAGD")
project in Alberta's oil sands region. When added together with Connacher's
conventional crude oil and natural gas production of 3,600 boe/d, Connacher's
total daily production is now approximately 10,600 boe/d. The company is
extremely pleased with the production ramp-up achieved at Great Divide Pod One
and with the performance of its conventional oil and gas properties.
    Readers are cautioned that a barrel of oil equivalent (boe) is derived by
converting natural gas to oil in the ratio of six thousand cubic feet of
natural gas to one barrel of crude oil and that this may be misleading,
particularly if used in isolation. A boe conversion is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead.
    At Great Divide, Connacher's SAGD project continues to exceed
expectations as production builds towards achievement of anticipated
production at the project design level of 10,000 bbl/d of bitumen later in
2008. Currently, 14 well pairs out of the 15 well pairs drilled have been
converted to SAGD production. As has been stated in earlier releases,
monitoring and performance data continues to exceed targets. Connacher's
operating, engineering and marketing staff continue to optimize the increased
bitumen volumes, which are being blended with diluent and then being trucked
to preferred markets The key learnings in these areas will be incorporated
into the design, startup and ramp up of the Pod Two ("ALGAR") project, the
application for which is currently working its way through the regulatory
process. It is anticipated that this project will be approved by the summer
2008, with construction anticipated to start shortly thereafter.
    The company continues to evaluate and interpret the results of the first
quarter 2008 core hole drilling program, its 3D seismic program as well as
Connacher's conventional drilling program and is very encouraged by its
interpretation. Results will be released at the end of second quarter 2008,
once the results have also been evaluated by the company's independent
qualified reserves evaluators.

    Connacher Oil and Gas Limited is a Calgary-based Canadian oil and natural
gas exploration, development and production company. The company's principal
assets are its significant bitumen reserves and resources and its 100 percent
interest in approximately 98,000 acres of oil sands leases in the Great Divide
region near Fort McMurray, Alberta. It also owns conventional production and
reserves at Marten Creek and Three Hills, Alberta and at Battrum,
Saskatchewan. Connacher owns and operates a 9,500 barrel per day refinery in
Great Falls, Montana and maintains a valuable 26 percent equity stake in
Petrolifera Petroleum Limited (PDP - TSX), a public company active in
Argentina, Colombia and Peru in South America.

    Forward-Looking Information: This press release contains "forward-looking
information" including: anticipated bitumen production and the timeline for
the achievement of anticipated production levels at Great Divide Pod One and
development of additional oil sands projects (including receipt of regulatory
approvals in respect of Algar and timeline for construction of Algar).
Forward-looking information is frequently characterized by words such as
"plan", expect", "project", "intend", "believe", "anticipate", estimate",
"may", "will", "could", "potential", "proposed" and other similar words, or
statements that certain events or conditions "may" or "will" occur. These
statements are only predictions. Forward-looking information is based on the
opinions and estimates of management at the date the statements are made, and
are subject to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from those projected
in the forward-looking statements. These factors include the inherent risks
involved in the exploration and development of oil sands properties,
difficulties or delays in start-up operations, the uncertainties involved in
interpreting drilling results and other geological data, fluctuating oil
prices, the possibility of unanticipated costs and expenses, uncertainties
relating to the availability and costs of financing needed in the future and
other factors including unforeseen delays. As an oil sands enterprise in the
development stage, Connacher faces risks including those associated with
exploration, development, start-up, approvals and the continuing ability to
access sufficient capital from external sources if required. Actual production
levels at Great Divide Pod One and the timelines associated therewith may vary
from those anticipated in this press release and such variations may be
material. For a description of the risks and uncertainties facing Connacher
and its business and affairs, readers should refer to Connacher's Annual
Information Form for the year ended December 31, 2007, which is available at
www.sedar.com. Connacher undertakes no obligation to update forward-looking
statements if circumstances or management's estimates or opinions should
change, unless required by law. Due to the risks and uncertainties inherent in
forward-looking information, the reader is cautioned not to place undue
reliance on this forward-looking information.